General Journal Flashcard

Front

What is the purpose of the general journal in accounting?

Back

To record daily transactions in chronological order

Front

Which of the following is true about journal entries?
Every transaction affects only one account,
Credits are always recorded before debits,
Journal entries are optional in the accounting process

Back

Debits must equal credits in each journal entry

Front

Which account is typically debited when a company pays rent? Options: Rent Expense, Cash, Account Receivable, Account Payable

Back

Rent Expense

Front

What is the correct order for recording a journal entry? Options: Date, debit accounts, credit accounts, explanation

Back

Date, debit accounts, credit accounts, explanation

Front

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

Back

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

Front

Which of the following best describes a compound journal entry?

Back

An entry with multiple debit or credit accounts.

Front

What does the explanation part of a journal entry provide?

Back

A brief description of the transaction

Front

Which account is credited when a company receives payment for services performed on account? Options: Cash, Account Payable, Revenue, Account Receivable

Back

Account Receivable

Front

Which of the following is NOT a step in the journalizing process?
Options:
Analyzing the transaction,
Determining which accounts are affected,
Entering the debit and credit amounts in the journal

Back

Preparing the trial balance

Front

Why are journals important in accounting?

Back

They provide a chronological record of all financial transactions.