FABM1 Chapter Test 9

What are books of accounts?

• Financial statements
• Financial records
• Journals only
• Ledgers only

What is another name for the journal?

• Books of final entry
• Source documents
• Books of original entry
• Trial balance

What is the ledger also known as?

• Books of original entry
• Books of final entry
• Source documents
• Financial statements

What are the two main types of books of accounts?

• Trial balance and journal
• Journal and ledger
• Source documents and ledger
• Financial statements and journal

What is the purpose of the journal?

• To summarize transactions
• To post transactions
• To record transactions first
• To prepare financial statements

Which journal is used for recording cash receipts?

• General journal
• Specific journal
• Cash receipts journal
• Purchase journal

Which journal is used for recording cash disbursements?

• Cash receipts journal
• Cash disbursements journal
• Purchase journal
• Sales journal

What is the sales journal used for?

• Recording cash sales
• Recording sales on account
• Recording cash purchases
• Recording purchase on account

What is the purchase journal used for?

• Recording sales transactions
• Recording cash purchases
• Recording purchases on account
• Recording cash receipts

Which ledger contains all accounts used for financial statements?

• General ledger
• Subsidiary ledger
• Cash ledger
• Purchase ledger