15 Questions
What does the double entry system dictate?
Every debit of a transaction has corresponding credit for the same amount
What is the purpose of preparing a Trial Balance?
To check the accuracy of posting in the ledger
In a correctly posted ledger, the total of debit balances must be equal to what?
The total of the credit balances
What is the main concern of an accountant in preparing ledger accounts?
Ensuring correctness in amount, side, and balance
What does a Trial Balance statement help in verifying?
Whether ledger accounts are correct in respect of amount, side, balance, etc.
What is the purpose of preparing a Trial Balance?
To check the accuracy of posting in the ledger
In the double entry system, what does every debit of a transaction have?
Corresponding credit for the same amount
What must be equal in a correctly posted ledger?
Total of debit balances and total of credit balances
What does a Trial Balance statement help in verifying?
Correctness of ledger accounts
What system are accounts prepared by?
Double entry system
What is the purpose of preparing a Trial Balance?
To verify the accuracy of ledger account preparation
In the double entry system, what does every debit of a transaction have?
Corresponding credit for the same amount
What must be equal in a correctly posted ledger?
Total of debit balances to the total of credit balances
What is the main concern of an accountant in preparing ledger accounts?
To ensure correctness in respect of amount, side, balance, etc.
What does a Trial Balance statement help in verifying?
The accuracy of posting in the ledger
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.
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.
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