Review on Journalizing, Posting and Trial Balance

What is the process of recording business transactions in the journal called?

• Posting

• Journalizing

• Balancing

• Adjusting

Which of the following is NOT included in a journal entry?

• Date of transaction

• Account titles

• Source document

• Trial balance total

What is the primary purpose of posting transactions?

• To record transactions chronologically

• To transfer journal entries to ledger accounts

• To calculate net income

• To close temporary accounts

Where are transactions first recorded in the accounting system?

• Ledger

• Trial balance

• General Journal

• Balance sheet

What is the purpose of the trial balance?

• To record transactions

• To detect errors in the ledger

• To adjust entries

• To calculate tax liabilities

What happens if the trial balance does not balance?

• The financial statements are correct

• There is an error in recording or posting transactions

• The company is making a profit

• The journal entries are complete

Which of the following errors will NOT cause the trial balance to be unbalanced?

• Posting an entry twice

• Omitting a transaction

• Reversing debits and credits in a journal entry

• Forgetting to record a depreciation expense

If a business purchases equipment on credit, how will it be recorded in the journal?

• Debit Cash, Credit Equipment

• Debit Equipment, Credit Accounts Payable

• Debit Accounts Payable, Credit Equipment

• Debit Equipment, Credit Revenue

Which statement is TRUE about posting?

• It occurs before journalizing

• It involves transferring amounts from the ledger to the journal

• It helps in preparing the trial balance

• It is done after financial statements are prepared

The process of checking that debits equal credits in the ledger is called:

• Posting

• Trial Balancing

• Journalizing

• Closing