Bookkeeping Ledgers Quiz
Take the quiz to see if you can remember the basics of bookkeeping ledgers.
Questions and Answers
- 1.
Tick the three main ledgers used in double-entry bookkeeping
- A.
The chart of accounts
- B.
General ledger
- C.
Accounts receivable ledger
- D.
Bookkeeping software
- E.
Journals
- F.
Accounts payable ledger
Correct Answer(s)
B. General ledger
C. Accounts receivable ledger
F. Accounts payable ledgerExplanation
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.Rate this question:
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- 2.
What does each page of the general ledger represent?
- A.
A debit account
- B.
A journal entry
- C.
An account from the chart of accounts
Correct Answer
C. An account from the chart of accountsExplanation
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.Rate this question:
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- 3.
Where is the information in the general ledger posted from?
- A.
Accounting source documents
- B.
General journal
- C.
Bank account
- D.
Option 4
Correct Answer
B. General journalExplanation
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.Rate this question:
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- 4.
One ledger page shows both the debit and credit sides of a single business transaction.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
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.Rate this question:
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- 5.
Accounts receivable ledgers and accounts payable ledgers are...
- A.
Subsidiary ledgers
- B.
Sub-standard ledgers
- C.
Substantial ledgers
- D.
Option 4
Correct Answer
A. Subsidiary ledgersExplanation
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.Rate this question:
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- 6.
What standard format is a ledger in?
- A.
O
- B.
H
- C.
T
Correct Answer
C. TExplanation
A ledger is a standard format in T.Rate this question:
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- 7.
Which side of any ledger do debits go on?
- A.
Left
- B.
Right
- C.
Middle
Correct Answer
A. LeftExplanation
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.Rate this question:
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- 8.
One of the things a ledger is good for is...
- A.
Keeping a running tally of each account
- B.
Producing reports
- C.
Both of the above
Correct Answer
C. Both of the aboveExplanation
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.Rate this question:
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- 9.
What is another name for the general ledger?
- A.
Book of numbers
- B.
Book of accounts
- C.
Book of final entry
Correct Answer
C. Book of final entryExplanation
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.Rate this question:
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Current Version
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Sep 13, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 10, 2014Quiz Created by
Sarah
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