Essential Book Keeping - Qp13

6 Questions | Total Attempts: 32

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Essential Book Keeping - Qp13

Questions and Answers
  • 1. 
    The Journal is where you will post those transactions that can not be posted to the cash book or the sales/purchase day book.
    • A. 

      True

    • B. 

      False

  • 2. 
    It is not essential that you use a journal as you may process transactions directly to the ledger.
    • A. 

      True

    • B. 

      False

  • 3. 
    There are a number of advantages to using a journal which includes:  (Select three)
    • A. 

      The journal forms a list of transaction that are to be moved to the ledger and enables details to easily traced

    • B. 

      The journal will form back-up to transactions in the ledger

    • C. 

      Anything that you are unsure about can be posted to the journal and dealt with by an expert later. This effectively forms a suspense account

    • D. 

      Having one side to each transaction can help to detect errors more easily

  • 4. 
    Capital is made up of the investment the owners of the company have made, and the retained profits of the business plus any drawings that have been made.
    • A. 

      True

    • B. 

      False

  • 5. 
    The journal is often the best place to make any adjustments that you need to make – remember, do not try and delete or rub out the original entry.
    • A. 

      True

    • B. 

      False

  • 6. 
    When a business opens its books for the first time, or if it purchases a new subsidiary, it may need to open new accounts, and it will need to carry opening balances to the accounts using the ledger.
    • A. 

      True

    • B. 

      False

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