Fundamentals of Accounting Quiz

What is the primary purpose of special journals?

• To eliminate the need for a general ledger

• To group similar transactions together

• To record only cash transactions

• To record all transactions individually

Which of the following is NOT a type of special journal?

• Cash receipts journal

• Inventory journal

• Sales journal

• Purchases journal

What is recorded in the sales journal?

• Purchases on account

• Sales on account

• Cash payments

• Cash sales

Which document serves as evidence of cash received?

• Official receipt

• Purchase order

• Delivery receipt

• Invoice

What does the term 'posting' refer to in accounting?

• Transferring information to the ledger

• Preparing financial statements

• Closing the accounts

• Recording transactions in the journal

Which of the following is a characteristic of a ledger?

• It is used only for cash transactions

• It records transactions in chronological order

• It eliminates the need for journals

• It summarizes increases and decreases of individual accounts

What is the first step in the accounting cycle?

• Preparing the trial balance

• Identifying and analyzing transactions

• Journalizing transactions

• Posting to the ledger

Which of the following is an example of a source document?

• Financial statement

• General ledger

• Invoice

• Trial balance

What is the purpose of adjusting entries?

• To close the accounts

• To update accounts for internal transactions

• To record cash transactions

• To prepare the trial balance

Which of the following accounts is increased with a debit?

• Liabilities

• Capital

• Expenses

• Income