Bookkeeping Cycle Quiz No. 1
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Refers to an entry on the right side of an account.
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Debit
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Credit
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Account Tittle
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Date
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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.
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- 2.
Refers to an entry on the left side of an account.
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Debit
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Credit
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Account Tittle
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Date
Correct Answer
A. DebitExplanation
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:
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- 3.
The purpose of posting to a ledger is to apply the deposits and charges to the specific account in which they belong.
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True
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False
Correct Answer
A. TrueExplanation
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:
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- 4.
A ledger is a compilation of accounts.
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True
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False
Correct Answer
A. TrueExplanation
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:
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- 5.
It is the task of recording, classifying and summarizing of financial transactions and events.
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Journal Entry
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Bookkeeping
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Debit
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Credit
Correct Answer
A. BookkeepingExplanation
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:
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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.
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Current Version
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Mar 20, 2023Quiz Edited by
ProProfs Editorial Team -
Sep 22, 2012Quiz Created by
Jhayfox14
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