General Journal Quiz

What is the purpose of the general journal in accounting?

• To calculate net income

• To prepare the trial balance

• To record daily transactions in chronological order

• To summarize the company's financial position

Which of the following is true about journal entries?

• Every transaction affects only one account

• Debits must equal credits in each journal entry

• Credits are always recorded before debits

• Journal entries are optional in the accounting process

What is the correct order for recording a journal entry?

• Credit accounts, debit accounts, date, explanation

• Debit accounts, date, explanation, credit accounts

• Date, debit accounts, credit accounts, explanation

• Date, explanation, debit accounts, credit accounts

If equipment is purchased for $10,000 on account, what is the journal entry?

• Debit Cash $10,000; Credit Equipment $10,000

• Debit Equipment $10,000; Credit Accounts Payable $10,000

• Debit Equipment $10,000; Credit Cash $10,000

• Debit Accounts Payable $10,000; Credit Equipment $10,000

What does the explanation part of a journal entry provide?

• The total amount of the transaction

• A brief description of the transaction

• The name of the accountant recording the transaction

• The account balances after the transaction

Which of the following is NOT a step in the journalizing process?

• Analyzing the transaction

• Determining which accounts are affected

• Preparing the trial balance

• Entering the debit and credit amounts in the journal

Which side of a T-account is typically used to record debits?

• Left

• Right

• Both Sides

• Neither side

Which side of a T-account is typically used to record credits?

• Left

• Right

• Both Sides

• Neither side

Double Entry Bookkeeping is....

• Method of bookkeeping that relies on a one-sided accounting entry to maintain financial information

• Method of bookkeeping that relies on a two-sided accounting entry to maintain financial information

• Method of bookkeeping that relies on as many accounting entries to maintain financial information

This is known as the "book of original entry" and has a record of all transactions

• General Journal

• T-Accounts

• Double-entry Bookkeeping

• Accounting