Accounting Transactions and Ledger Management

This video tutorial, led by instructor Brandy, explains the role of the general ledger in the accounting cycle. It covers how to transfer journal entries into the ledger, providing a chronological listing of transactions for each account. The tutorial includes examples of posting transactions, such as cash debits and credits, and emphasizes maintaining a running total of account balances. By the end, viewers will understand how to complete a general ledger and prepare financial statements from it.

What is the primary purpose of a general ledger in accounting?

• To manage employee payroll

• To track inventory levels

• To summarize the financial position of a company

• To record all financial transactions in chronological order

How are journal entries related to the general ledger?

• They are not related to the general ledger

• They are summarized in the general ledger

• They are directly recorded in the general ledger

• They are transferred to the general ledger

What is the first account mentioned for posting transactions in the general ledger?

• Accounts Payable

• Capital

• Revenue

• Cash

What is the balance in the cash account after the first transaction?

• $5,000 credit

• $10,000 debit

• $10,000 credit

• $5,000 debit

Which account is credited with $10,000 on January 1st?

• Cash

• Capital

• Service Revenue

• Accounts Payable

What is the balance in the car account after posting the transaction?

• $10,000 credit

• $10,000 debit

• $5,000 credit

• $5,000 debit

What is the next account after the car account that is credited?

• Advertising Expense

• Cash

• Accounts Payable

• Service Revenue

What is the correct method to update the balance when there is a debit and a credit?

• Divide them

• Multiply them

• Subtract them

• Add them together

What is the final balance in the cash account after all transactions?

• $9,900 credit

• $9,900 debit

• $10,000 credit

• $10,000 debit

Which account is credited with $250 on January 7th?

• Capital

• Service Revenue

• Accounts Receivable

• Cash