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Questions and Answers
Which of the following is a function of the General Journal?
Which of the following is a function of the General Journal?
What is the purpose of a Ledger Account?
What is the purpose of a Ledger Account?
What does the General Ledger consist of?
What does the General Ledger consist of?
What is the purpose of a T-account?
What is the purpose of a T-account?
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What is the difference between debit and credit?
What is the difference between debit and credit?
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Which of the following best defines the trial balance?
Which of the following best defines the trial balance?
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Which of the following accurately describes the chart of accounts?
Which of the following accurately describes the chart of accounts?
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Which of the following defines journalizing?
Which of the following defines journalizing?
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Which of the following accurately describes a journal entry?
Which of the following accurately describes a journal entry?
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Which of the following best defines cross-referencing?
Which of the following best defines cross-referencing?
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Study Notes
General Journal
- A function of the General Journal is to record transactions and events of a company in a chronological order.
Ledger Account
- The purpose of a Ledger Account is to provide a summary of all transactions related to a particular asset, liability, equity, revenue, or expense.
General Ledger
- The General Ledger consists of a collection of all Ledger Accounts, which in turn, contain the entire transactions and balances of a company.
T-Account
- The purpose of a T-Account is to provide a visual representation of a Ledger Account, with debits on the left side and credits on the right side, helping to analyze and record transactions.
Debit and Credit
- A debit is an entry that increases an asset or expense, or decreases a liability or equity, whereas a credit is an entry that increases a liability or equity, or decreases an asset or expense.
Trial Balance
- The trial balance is a list of all general ledger accounts and their corresponding debit or credit balances, used to ensure that the debits equal the credits, thus verifying the accuracy of the recording process.
Chart of Accounts
- The chart of accounts is a systematic organization of all Ledger Accounts, providing a comprehensive framework for classifying and recording transactions.
Journalizing
- Journalizing is the process of recording transactions and events in a General Journal, which involves analyzing the transaction, determining the accounts affected, and writing the journal entry.
Journal Entry
- A journal entry is a record of a transaction or event, including the date, accounts affected, and the corresponding debit and credit amounts, which is used to update the Ledger Accounts.
Cross-Referencing
- Cross-referencing is the process of linking a Ledger Account to its corresponding journal entry, allowing for easy tracing and verification of transactions.
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Description
Test your knowledge of accounting basics with this quiz on General Journals and Ledger Accounts. Learn about the purpose of a General Journal and how transactions affect account balances. Challenge yourself to identify the components of a Ledger Account and understand how increases and decreases are recorded.
