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 (A)</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 (A)</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 (D)</p> Signup and view all the answers

What is the primary purpose of a journal?

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

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

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

What is the purpose of a subsidiary ledger?

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

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

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

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

<p>Ledger (C)</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 (C)</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 (B)</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 (C)</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 (D)</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 (A)</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 (C)</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 (C)</p> Signup and view all the answers

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