Bookkeeping Cycle Quiz No. 1

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Jhayfox14
J
Jhayfox14
Community Contributor
Quizzes Created: 1 | Total Attempts: 629
| Attempts: 629
SettingsSettings
Please wait...
  • 1/5 Questions

    Refers to an entry on the right side of an account.

    • Debit
    • Credit
    • Account Tittle
    • Date
Please wait...
About This Quiz

Bookkeeping Cycle Quiz No. 1 examines foundational skills in bookkeeping, including transaction recording, debit and credit entries, and ledger management. This quiz is essential for learners aiming to understand basic accounting processes.

Bookkeeping Quizzes & Trivia

Quiz Preview

  • 2. 

    Refers to an entry on the left side of an account.

    • Debit

    • Credit

    • Account Tittle

    • Date

    Correct Answer
    A. Debit
    Explanation
    Debit refers to an entry on the left side of an account. In accounting, every transaction has two sides - debit and credit. Debit represents an increase in assets or expenses, or a decrease in liabilities or revenues. It is recorded on the left side of an account to show the increase in value or decrease in a liability. This helps in maintaining the balance of the accounting equation, which states that assets must equal liabilities plus equity. Therefore, the correct answer is debit.

    Rate this question:

  • 3. 

    A ledger is a compilation of accounts.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A ledger is a collection or compilation of accounts that records all financial transactions and balances for a specific period. It serves as a central repository of all the individual accounts, such as cash, sales, expenses, and assets, providing a comprehensive overview of the financial activities of an organization. By organizing and categorizing accounts, a ledger helps in tracking and analyzing financial data, ensuring accuracy and facilitating the preparation of financial statements. Therefore, the statement "A ledger is a compilation of accounts" is true.

    Rate this question:

  • 4. 

     The purpose of posting to a ledger is to apply the deposits and charges to the specific account in which they belong.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The purpose of posting to a ledger is to ensure that deposits and charges are accurately recorded and assigned to the correct account. By posting transactions to the ledger, the financial information is organized and categorized, making it easier to track and analyze the activity for each specific account. This helps in maintaining accurate and up-to-date financial records and enables businesses to monitor their financial position effectively.

    Rate this question:

  • 5. 

    It is the task of recording, classifying and summarizing of financial transactions and events.

    • Journal Entry

    • Bookkeeping

    • Debit

    • Credit

    Correct Answer
    A. Bookkeeping
    Explanation
    Bookkeeping is the correct answer because it involves the task of recording, classifying, and summarizing financial transactions and events. It is the process of keeping track of all financial activities within an organization, including recording transactions in journals, posting them to ledgers, and preparing financial statements. Bookkeeping ensures that all financial information is accurately recorded and organized, providing a clear picture of the financial health of the business.

    Rate this question:

Quiz Review Timeline (Updated): Mar 20, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 22, 2012
    Quiz Created by
    Jhayfox14
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.