Podcast
Questions and Answers
What does the double entry system dictate?
What does the double entry system dictate?
- Every debit of a transaction has corresponding credit for the same amount (correct)
- Every transaction has only one entry
- Only credit transactions should be recorded
- Debit and credit amounts need not match
What is the purpose of preparing a Trial Balance?
What is the purpose of preparing a Trial Balance?
- To prepare financial statements
- To check the accuracy of posting in the ledger (correct)
- To calculate the profit and loss
- To record day-to-day transactions
In a correctly posted ledger, the total of debit balances must be equal to what?
In a correctly posted ledger, the total of debit balances must be equal to what?
- Twice the total of the credit balances
- Unrelated to the credit balances
- Half the total of the credit balances
- The total of the credit balances (correct)
What is the main concern of an accountant in preparing ledger accounts?
What is the main concern of an accountant in preparing ledger accounts?
What does a Trial Balance statement help in verifying?
What does a Trial Balance statement help in verifying?
What is the purpose of preparing a Trial Balance?
What is the purpose of preparing a Trial Balance?
In the double entry system, what does every debit of a transaction have?
In the double entry system, what does every debit of a transaction have?
What must be equal in a correctly posted ledger?
What must be equal in a correctly posted ledger?
What does a Trial Balance statement help in verifying?
What does a Trial Balance statement help in verifying?
What system are accounts prepared by?
What system are accounts prepared by?
What is the purpose of preparing a Trial Balance?
What is the purpose of preparing a Trial Balance?
In the double entry system, what does every debit of a transaction have?
In the double entry system, what does every debit of a transaction have?
What must be equal in a correctly posted ledger?
What must be equal in a correctly posted ledger?
What is the main concern of an accountant in preparing ledger accounts?
What is the main concern of an accountant in preparing ledger accounts?
What does a Trial Balance statement help in verifying?
What does a Trial Balance statement help in verifying?
Study Notes
Double Entry System and Ledger Accounts
- The double entry system dictates that every debit of a transaction has a corresponding credit.
Trial Balance Statement
- The purpose of preparing a Trial Balance is to verify that the total of debit balances is equal to the total of credit balances in a correctly posted ledger.
- A Trial Balance statement helps in verifying the arithmetic accuracy of ledger accounts.
Ledger Accounts
- The main concern of an accountant in preparing ledger accounts is to ensure that debit and credit balances are equal.
Correctly Posted Ledger
- In a correctly posted ledger, the total of debit balances must be equal to the total of credit balances.
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Description
Test your knowledge of trial balance and computer applications in accounting with this module 2 quiz. Assess your understanding of ledger accounts, verifying accuracy, and more.
