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Quiz by Ruben Leyba

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8 questions
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  • Q1
    1. ______________________ are the finance records, ledgers and journals that compose the company's accounts
    Subsidiary ledger
    Cash Receipts Journal
    Cash payments journal
    Books of Accounts
  • Q2
    2. Which of the following is a purpose/use of the books of accounts?
    Proof of the business transactions reflected in the financial statements
    Analysis of the company's performance
    All of the above
    Ensuring regulatory compliance of the company
  • Q3
    3. Which of the following statements about the general journal is true?
    Provides a chronological record of the company's transactions
    Displays the transactions date, account titles and explanations and outstanding balances of each accounts
    Involves the transferring of journal entries to the ledger accounts
    None of the above
  • Q4
    4. A transaction is first recorded in a record called a __________-.
    Chart of accounts
  • Q5
    5. The journal is often referred to as the book of original entry because
    The business transaction is first recorded in this book
    It involves the process of journalizing
    It is in chronological order
    None of the above
  • Q6
    6. The Cash receipts journal is used in journalizing
    All transactions sales of merchandise on account
    All cash paid (including cash purchases)
    All cash received (including cash sales)
    All purchases of merchandise on account
  • Q7
    7. What is a firm's payment to supplier for merchandise inventory recorded?
    Purchases journal
    Cash receipts journal
    Cash payments journal
    Sales journal
  • Q8
    8. Where are amounts owed by customers for credit purchases found?
    Cash payments journal
    General ledger
    Accounts Receivable subsidiary ledgers
    Sales journal

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