Illustrating General and Special Journals Format
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Questions and Answers

What is the primary purpose of the general journal?

  • To record all transactions in chronological order (correct)
  • To record all cash transactions
  • To record all transactions that do not fit in the special journals
  • To record all adjusting entries

    • Which of the following is NOT a characteristic of the double-entry system?

  • Each transaction results in equal debits and credits
  • Transactions are recorded in chronological order
  • Accounts always have a normal balance of zero (correct)
  • Each transaction is recorded in two parts - debit and credit

    • What is the primary purpose of maintaining a general ledger?

  • To record all cash transactions
  • To provide a summary of all account balances (correct)
  • To record all adjusting entries
  • To record all transactions in chronological order

    • Which of the following is an example of a contra account?

    <p>Accumulated Depreciation</p> Signup and view all the answers

    What is the main difference between the general ledger and a subsidiary ledger?

    <p>The general ledger is maintained in chronological order, while the subsidiary ledger is maintained by account</p> Signup and view all the answers

    Which of the following is NOT a characteristic of the format of a general journal entry?

    <p>The account balances before and after the transaction</p> Signup and view all the answers

    What is the primary purpose of a journal?

    <p>To record transactions in chronological order</p> Signup and view all the answers

    Which type of journal is used to record transactions with similar nature?

    <p>Special journal</p> Signup and view all the answers

    What is the purpose of a subsidiary ledger?

    <p>To provide a breakdown of controlling account balances</p> Signup and view all the answers

    Which of the following is NOT a typical example of a special journal?

    <p>General journal</p> Signup and view all the answers

    Which book of accounts is also known as the 'book of final entries'?

    <p>Ledger</p> Signup and view all the answers

    What is the primary purpose of the general ledger?

    <p>To contain all accounts appearing in the trial balance</p> Signup and view all the answers

    What is the purpose of posting entries from the journal to the ledger?

    <p>To update the account balances in the ledger</p> Signup and view all the answers

    Which of the following is an error that can be revealed by preparing a trial balance?

    <p>Recording one part of an entry for a different amount than the other part</p> Signup and view all the answers

    What is the purpose of an unadjusted trial balance?

    <p>To check the equality of total debits and total credits before adjusting entries are made</p> Signup and view all the answers

    Which of the following is an error that cannot be revealed by preparing a trial balance?

    <p>Omitting an entire transaction from the journal</p> Signup and view all the answers

    What is the purpose of a post-closing trial balance?

    <p>To check the equality of total debits and total credits after the closing process</p> Signup and view all the answers

    Which of the following is an error that can be revealed by preparing a trial balance?

    <p>Errors of transplacement (slide error) on one side of an entry</p> Signup and view all the answers

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