General Ledger

A schedule that contains all accounts needed to prepare financial statements (p. 94)

• General Journal

• General Ledger

• All Sales Invoices

• Source Documents

A ledger is a (p. 94)

• group of accounts

• form to enter transactions in chronological order

• business paper from which information is obtained for an entry

• a document used to record sales

Transferring information from a journal entry to a ledger account (p. 98)

• journaling

• posting

• file maintenance

• correcting entry

If a credit is posted to a liability account, the amount of the credit (p. 99)

• will be added to the previous account balance to determine the new credit balance

• will be subtracted from the previous account balance to determine the new credit balance

• will be added to the previous account balance to determine the new debit balance

• will be subtracted from the previous account balance to determine the new debit balance

If a debit is posted to an asset account, the amount of the debit (p. 98)

• will be subtracted from the previous balance to determine the new debit account balance

• will be added to the previous balance to determine the new debit account balance

• will be subtracted from the previous balance to determine the new credit account balance

• will be added from the previous balance to determine the new credit account balance

The General Ledger (p. 94)

• pages must all have an account balance >0

• can have more than one account on a page if space permits

• should be updated at least once a month

• should have a page fof each account listed in the chart of accounts

Bill Stone, owner, makes a $2,000 draw when there was $14,330 in the Cash account. There wa $34,500 in the Capital account. He would post thus to the General Ledger as

• $2,000 Credit Bill Stone, Draw; $2,000 Debit Cash

• $2,000 Debit Bill Stone, Draw; $2,000 Credit Cash

• $2,000 Credit Bill Stone, Capital; $2,000 Debit Bill Stone. Draw

• $2,000 Debit Bill Sone, Capital; $2,000 Credit Bill Stone Draw

Dequan's Car Detailing had cash sales of $840 yesterday. So far he has had $39,600 in Sales and has $2,788 in his Cash account. After posting what wiil be the new GL balances?

• Credit Sales $40,440; Debit Cash $3,628

• Debit Sales $40,440; Credit Cash $3,628

• Credit Sales $35,760; Debit Cash $1,948

• Debit Sales $35,760; Credit Cash $1,948

A general ledger account that summarises all revenue and expenses for a reporting period is the ....

• Capital account

• Bank account

• Profit and Loss Summary

• Profit Account

What is a ledger?

• A group of charts

• A group of accounts

• An account of groups

• A chart of groups