2nd Quarter, Quiz #2

What is the primary purpose of a journal in accounting?

• To summarize the financial statements

• To record all financial transactions in chronological order

• To prepare a trial balance

• To classify transactions under appropriate categories

Which of the following is the correct definition of a ledger?

• A document that records payments made by the business

• A collection of accounts showing the changes made to each account

• A report summarizing financial position

• A list of all unpaid bills

Which of the following transactions is recorded in the cash receipts journal?

• Purchase of inventory on credit

• Payment to a supplier

• Cash received from customers

• Adjustment of expenses

What is the main purpose of a bank deposit slip?

• To record cash withdrawals

• To provide proof of cash deposits made into a bank account

• To verify the balance in the bank account

• To monitor outstanding checks

Which document is commonly prepared when goods are sold on credit?

• Purchase order

• Bank reconciliation statement

• Sales invoice

• Delivery receipt

What is recorded in the accounts payable ledger?

• The amount of money owed by customers

• The company's equity

• The amount the company owes to suppliers

• The depreciation of company assets

When a company writes a check, it is recorded in which journal?

• Sales journal

• Cash disbursements journal

• Purchases journal

• General journal

Which document is used to reconcile the company's cash balance with the bank statement?

• Trial balance

• Cash receipts journal

• Bank reconciliation statement

• Sales ledger

Which of the following is not a book of original entry?

• General ledger

• Sales journal

• Purchases journal

• Cash receipts journal

Which type of journal is used to record credit purchases?

• Sales journal

• Purchases journal

• Cash receipts journal

• General journal