Accounting Books and Bank Documents Quiz

If a business records a transaction only in the ledger without first entering it in the journal, what challenge may arise?

• Difficulty tracing chronological events

• Difficulty computing accurate balances

• Difficulty preparing trial balances

• Difficulty preparing financial statements

How does the journal act as evidence compared to the ledger?

• Journal shows complete narration, ledger shows balances

• Journal shows trial balance, ledger shows postings

• Journal shows account categories, ledger shows entries

• Journal shows totals, ledger shows computations

If an entry is wrongly posted in the journal but correctly transferred to the ledger, which accounting principle is violated?

• Accuracy in classification

• Accuracy in measurement

• Accuracy in posting

• Accuracy in recording

In analyzing errors, why is cross-checking between journal and ledger critical?

• Journal ensures narration, ledger ensures summarization

• Journal ensures computation, ledger ensures totals

• Journal ensures categorization, ledger ensures closing

• Journal ensures reporting, ledger ensures valuation

Which scenario best shows the complementary role of journal and ledger?

• Recording sales in the journal, updating customer balance in ledger

• Posting salaries in the journal, computing trial balance in ledger

• Recording depreciation in the journal, balancing totals in ledger

• Recording drawings in the journal, preparing reports in ledger

If a transaction is omitted in the journal, what is the likely outcome in the ledger?

• The ledger lacks the entry, leading to incomplete balances

• The ledger still records it automatically

• The ledger shows a temporary discrepancy

• The ledger reflects only partial classification

Why is the journal considered the 'book of original entry'?

• Because it records first-hand chronological details

• Because it computes trial balances directly

• Because it groups accounts by nature immediately

• Because it prepares the income statement directly

How does the ledger act like a filing system compared to the journal?

• It organizes data by account instead of date

• It arranges entries chronologically with narration

• It verifies totals with explanations attached

• It presents computations in grouped accounts

A transaction shows ₱1,000 Cash received from Sales. In which books and how will it be reflected?

• Journal: Cash debit ₱1,000, Sales credit ₱1,000; Ledger: updated balances

• Journal: Cash credit ₱1,000, Sales debit ₱1,000; Ledger: reversed balances

• Journal: both accounts updated; Ledger: no posting required

• Journal: narration only; Ledger: trial balance entry

If a ledger shows incorrect balances despite correct journal entries, where is the error likely located?

• In the posting process from journal to ledger

• In the narration of journal transactions

• In the computation of journal entries

• In the preparation of income statements