Essential Book Keeping - Qp7

8 Questions | Total Attempts: 36

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Essential Book Keeping - Qp7

Questions and Answers
  • 1. 
    In a very small business the entire financial records can be kept in a single book, known as the journal.
    • A. 

      True

    • B. 

      False

  • 2. 
    A common method of dividing the ledger might be: (Select four)
    • A. 

      Sales ledger

    • B. 

      Purchase ledger

    • C. 

      Petty Cash

    • D. 

      Private ledger

    • E. 

      General ledger

  • 3. 
    The sales ledger details all sales transactions made by a business’s customers, with an account for each debit customer.
    • A. 

      True

    • B. 

      False

  • 4. 
    Within a sales ledger, a debit entry records the sales of goods or services. The credit side represents any payments received from the customer.
    • A. 

      True

    • B. 

      False

  • 5. 
    The exception with the purchase ledger is that the debit and credit entries are reversed to reflect the increase of an amount owing when a purchase is made.
    • A. 

      True

    • B. 

      False

  • 6. 
    One of the basic fundamentals of accounting is prudence.
    • A. 

      True

    • B. 

      False

  • 7. 
    Whenever you spot a mistake, you must try and correct it by rubbing out and altering an existing entry.
    • A. 

      True

    • B. 

      False

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