What is the purpose of a folio in accounting?

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

To record the account of debtors

To record the account of creditors

What does the cash book record?

Receipts and payments of cash and cheques

What is a contra entry?

A transaction affecting both the cash account and the bank account

A transaction affecting only the cash account

A transaction affecting only the bank account

A transaction affecting all other accounts

What is a trade discount?

A. A discount given to customers when they buy in large quantities or are considered loyal customers.

B. A discount given to customers to encourage quick payment of outstanding accounts.

C. A discount recorded on the debit side of the books.

D. A discount recorded on the credit side of the books.

Where are trade discounts recorded?

C. They are not recorded in the books.

What is the purpose of cash discounts?

B. To encourage quick payment of outstanding accounts.

A. To encourage customers to buy in large quantities.

C. To increase the list price of products.

D. To record discounts in the books.

What is the first step in the process of dealing with discounts allowed and discounts received?

B. Entering discount amounts into the appropriate column in the cash book.

A. Totalling each column at the end of the period.

C. Transferring total amounts to the respective discount accounts in the general ledger.

D. Transferring individual discounts to their respective ledger accounts.

What does the denominator represent in the term \( \frac{x}{y} \, n \, 30 \)?

Percentage discount to be received

What is the first step in recording credit sales?

Make a list of all credit sales to debtors for the month in the Sales Journal

Transfer total credit sales from the Sales Journal to the Sales A/C in the General Ledger

Post individual debit entries to the debtors’ accounts in the Sales Ledger

Which of the following is the first step to record credit purchases?

Make a list of all credit purchases from creditors

Transfer total credit purchases to the General Ledger

Post individual credit entries to the creditors' accounts

Record the purchases in the Sales Ledger

What is the second step to record the return of credit sales?

Transfer total returns inwards to the Returns Inwards A/C in the General Ledger

Make a list of all returns inwards

Post individual returns inwards entries to the debtors' accounts

Record the returns in the Purchases Journal

What type of transactions does the Returns Outwards Journal record?

Return of goods to creditors by the business

Return of goods to the business by debtors

What is the first step to record the return of credit purchases?

Make a list of all returns outwards to creditors during the month in the Returns Outwards Journal.

Post individual returns outwards entries to the creditors' accounts in the Purchases Ledger.

Transfer total returns outwards from the Returns Outwards Journal to the Returns Outwards A/C in the General Ledger.

Where should total returns outwards be transferred to from the Returns Outwards Journal?

Returns Outwards A/C in the General Ledger

What is the General Journal used for?

Recording all other transactions and items not recorded in other books

Recording only credit purchases

Recording only cash transactions

Recording only sales transactions

Which of the following is NOT a use of the General Journal?

Donation of a fixed asset to charity

What must the General Journal show?

The date of the entry and the account to be debited and the amount

The name of the creditor and the amount

The name of the debtor and the amount

The type of transaction and the amount

What are opening entries in accounting?

Entries recorded at the end of the previous period used to start the current period

Entries recorded at the end of the current period

Entries recorded in the middle of the current period

Entries recorded at the beginning of the next period

What must be ensured when listing debit and credit balances in opening entries?

Both sides are balanced and the narrative for recorded opening entries is written

Only credit balances are listed

What are composite journal entries?

Entries involving more than two accounts

Entries involving only one account

Entries involving only two accounts

What should be written in composite journal entries?

The one account being credited/debited and the two accounts being debited/credited in separate lines

Only the account being credited

What is a source document in accounting?

A document that can be used as a reference/proof of a transaction

A document that records only credit transactions

A document that records only debit transactions

A document that records only cash transactions

Which of the following is NOT typically recorded in a Cash Book?

Cheques and cheque counterfoils

Bank deposit slips and withdrawal slips

What is the main difference between a sales invoice and a purchases invoice?

The perspective from which it is being viewed

What is a cheque counterfoil?

A document with two papers (carbon paper beneath)

A document used to record sales

A document used to record purchases

A document used to record petty cash vouchers

What is typically included in a purchases invoice?

Date, name, and address of the supplier

Date, name, and address of the customer

Bank statements and reconciliation statements

What is the primary purpose of the petty cash book?

To record the payment of small expenses

Quiz on Bookkeeping

Authored by Jay Jay

Business

10th Grade

Used 1+ times

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100 questions

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which book of original entry also functions as a ledger?

Cash Book

Sales Journal

Purchases Journal

General Journal

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many books of original entry are there?

Six

Four

Five

Seven

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of ledger records the account of debtors only?

Sales Ledger (SL)

Purchases Ledger (PL)

Cash Book (CB)

General Ledger (GL)

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Purchases Ledger (PL) record?

Accounts of debtors only

Accounts of creditors only

Accounts of cash and bank only

All other accounts

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Quiz on Bookkeeping

What is a book of original entry?

Which book of original entry also functions as a ledger?

How many books of original entry are there?

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

What is the purpose of a daybook?

Which type of ledger records the account of debtors only?

What does the Purchases Ledger (PL) record?

Which ledger records the accounts of cash and bank only?

What is the purpose of a folio in accounting?

What does the cash book record?

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