What is a book of original entry?

• A daybook or journal in which certain types of transactions are recorded before becoming part of the double-entry book-keeping system.

• A ledger where all transactions are recorded.

• A financial statement summarizing all transactions.

• A document used for auditing purposes.

Which book of original entry also functions as a ledger?

• Cash Book

• Sales Journal

• Purchases Journal

• General Journal

How many books of original entry are there?

• Six

• Four

• Five

• Seven

Which of the following is NOT a reason for dividing the ledger?

• It reduces the volume of transactions.

• It makes the collection of information easy.

• It helps in auditing the transactions.

• It makes it easy for employees to handle transactions.

What is the purpose of a daybook?

• To record transactions by date as they occur.

• To summarize financial statements.

• To audit financial records.

• To prepare tax documents.

Which type of ledger records the account of debtors only?

• Sales Ledger (SL)

• Purchases Ledger (PL)

• Cash Book (CB)

• General Ledger (GL)

What does the Purchases Ledger (PL) record?

• Accounts of debtors only

• Accounts of creditors only

• Accounts of cash and bank only

• All other accounts

Which ledger records the accounts of cash and bank only?

• Sales Ledger (SL)

• Purchases Ledger (PL)

• Cash Book (CB)

• General Ledger (GL)

What is the purpose of a folio in accounting?

• To record the account of debtors

• To record the account of creditors

• To cross-reference the book/ledger and page of an account

• To record all other accounts

What does the cash book record?

• Receipts and payments of cash and cheques

• Accounts of debtors only

• Accounts of creditors only

• All other accounts