Accounting Books and Statements

The book of original entry is called:

• Ledger

• Journal

• Trial Balance

• Cash Book

Which of the following is known as the “Book of Final Entry”?

• Journal

• Ledger

• Trial Balance

• Balance Sheet

Journal records transactions in which order?

• Alphabetical order

• Chronological order

• Random order

• By account type

In Ledger, the left-hand side is called:

• Credit side

• Balance side

• Debit side

• Particulars side

Which statement is prepared to check arithmetical accuracy of accounts?

• Journal

• Ledger

• Trial Balance

• Balance Sheet

“Debit the receiver, Credit the giver” is the rule of which type of account?

• Real Account

• Nominal Account

• Personal Account

• Cash Account

If Trial Balance does not tally, it means:

• Accounts are correct

• There may be an error in posting

• Business is making a loss

• Profit is very high

Which of the following is an example of a Nominal Account?

• Furniture A/c

• Cash A/c

• Rent Paid A/c

• Debtors A/c

The balance of Cash A/c is generally:

• Debit balance

• Credit balance

• Zero balance

• Negative balance

The process of transferring entries from Journal to Ledger is called:

• Posting

• Balancing

• Recording

• Summarizing