18 Questions
What is the primary purpose of the general journal?
To record all transactions in chronological order
Which of the following is NOT a characteristic of the double-entry system?
Accounts always have a normal balance of zero
What is the primary purpose of maintaining a general ledger?
To provide a summary of all account balances
Which of the following is an example of a contra account?
Accumulated Depreciation
What is the main difference between the general ledger and a subsidiary ledger?
The general ledger is maintained in chronological order, while the subsidiary ledger is maintained by account
Which of the following is NOT a characteristic of the format of a general journal entry?
The account balances before and after the transaction
What is the primary purpose of a journal?
To record transactions in chronological order
Which type of journal is used to record transactions with similar nature?
Special journal
What is the purpose of a subsidiary ledger?
To provide a breakdown of controlling account balances
Which of the following is NOT a typical example of a special journal?
General journal
Which book of accounts is also known as the 'book of final entries'?
Ledger
What is the primary purpose of the general ledger?
To contain all accounts appearing in the trial balance
What is the purpose of posting entries from the journal to the ledger?
To update the account balances in the ledger
Which of the following is an error that can be revealed by preparing a trial balance?
Recording one part of an entry for a different amount than the other part
What is the purpose of an unadjusted trial balance?
To check the equality of total debits and total credits before adjusting entries are made
Which of the following is an error that cannot be revealed by preparing a trial balance?
Omitting an entire transaction from the journal
What is the purpose of a post-closing trial balance?
To check the equality of total debits and total credits after the closing process
Which of the following is an error that can be revealed by preparing a trial balance?
Errors of transplacement (slide error) on one side of an entry
Learn about the format of general and special journals in accounting, which are essential for recording business transactions. Explore how transactions are first recorded in the journal, also known as the 'book of original entries'.
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