Bookkeeping Ledgers Quiz

Explanation
The three main ledgers used in double-entry bookkeeping are the general ledger, accounts receivable ledger, and accounts payable ledger. The general ledger contains all the financial transactions of a company, while the accounts receivable ledger records all the money owed to the company by its customers. On the other hand, the accounts payable ledger keeps track of all the money that the company owes to its suppliers and creditors. These three ledgers are essential in maintaining accurate and organized financial records for a business.

Explanation
Each page of the general ledger represents an account from the chart of accounts. The general ledger is a record of all the accounts used by a company, and each page in the ledger is dedicated to a specific account. This allows for organized and detailed tracking of transactions and balances for each individual account.

Explanation
The information in the general ledger is posted from the general journal. The general journal is where all the transactions of a company are recorded in chronological order. These transactions are then transferred or posted to the general ledger, which is a master record of all the accounts of the company. This allows for easy tracking and analysis of financial data. The bank account is not the source of information for the general ledger, but it is one of the accounts that is recorded in the general ledger.

Explanation
The statement is false because a single ledger page typically only shows either the debit side or the credit side of a business transaction. The debit side records the increase in assets or expenses, while the credit side records the decrease in assets or the increase in liabilities or equity. Both sides are recorded separately in order to maintain the balance of the accounting equation.

Explanation
Accounts receivable ledgers and accounts payable ledgers are subsidiary ledgers. Subsidiary ledgers are used to record detailed information about specific accounts, such as accounts receivable or accounts payable, and provide a more detailed breakdown of the transactions within those accounts. These subsidiary ledgers are then summarized and recorded in the general ledger. By using subsidiary ledgers, businesses can easily track and manage individual accounts, making it easier to monitor and analyze their financial transactions.

Explanation
A ledger is a standard format in T.

Explanation
Debits are recorded on the left side of a ledger. This is because the left side of the ledger represents the assets and expenses of a company, and debits are used to increase these accounts. On the other hand, credits are recorded on the right side of the ledger, representing liabilities, equity, and revenues, and are used to increase these accounts. This system of recording debits and credits is known as double-entry bookkeeping and helps maintain the balance and accuracy of financial records.

Explanation
A ledger is a useful tool for keeping track of financial transactions. It allows for a running tally of each account, meaning that all credits and debits can be recorded and tracked over time. This helps in maintaining accurate and up-to-date financial records. Additionally, a ledger can produce reports that summarize the financial activity of the accounts, providing valuable insights and analysis. Therefore, the correct answer is that a ledger is good for both keeping a running tally of each account and producing reports.

Explanation
The general ledger is often referred to as the "book of final entry" because it is the main accounting record that contains all the financial transactions of a company. It serves as a central repository for all the accounts and provides a comprehensive overview of the financial health of the organization. The general ledger is where all the journal entries are posted and summarized, making it the final destination for recording and organizing financial data.