S1 Ch4 Types and uses of journals, ledger and cash books

Which of the following is the correct sequence of preparing trial balance before end of period adjustments?

• Balancing of the accounts --> Journalising --> Adjusting --> Preparing trial balance

• Collecting source documents --> Journalising --> Posting --> Preparing trial balance

• Preparing financial statements --> Posting --> Adjusting --> Preparing trial balance

• Journalising --> Posting --> Adjusting --> Preparing trial balance

Which of the following is created to check the accuracy of double entry?

• Trial balance

• Ledger accounts

• Statement of Profit or Loss

• Statement of Financial Position

What is the main purposes of accounting cycle?

• to detect errors and adjust it

• to prepare accurate financial statements

• to evaluate the performance of employees

• to check the arithmetical accuracy of entries in ledger

What is the first step in accounting cycle?

• preparing financial statements

• create an adjusted trial balance

• post the journal entries to the respective ledger accounts

• identify the transactions through the original source documents

The first record of transaction in the books are ____.

• journals

• ledger

• Trial balance

• Statement of Profit or Loss

When a business received a credit note from supplier, it should be first recorded in the ____.

• Sales Journal

• Purchases Journal

• Returns Inwards Journal

• Returns Outwards Journal

Once journal entries are recorded, it can then be posted to ____.

• Trial balance

• Ledger accounts

• Statement of Profit of Loss

• Statement of Financial Position

When a business purchases goods on credit, which of the below journal should such transaction be recorded in?

• Cash Book

• Sales Journal

• General Journal

• Purchases Journal

Which of the following is best describes about Ledger?

• ledger is created to verify the accuracy of the double entries.

• ledger is first record of the transaction in books.

• ledger is segregated by type of accounts.

• ledger is recorded in chronological. order.

Which of the following transaction should be recorded in Petty Cash Book?

• small value cash payment

• credit sales of goods

• a car brought in by owner

• cheque received from customers