Practice Introduction To Journal, Ledger, And Trial Balance (2.1)

Practise this section

8 questions

Flashcard drill
2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is the purpose of accounting?
Show hintHide hint
Think about what accounting helps businesses do.
Question 2.
What does a journal record?
Show hintHide hint
Remember the term 'book of original entry.'
3Question 3.
What does accounting help stakeholders with?
- Making informed decisions
- Increasing profits
- Reducing costs
Show hintHide hint
Think about who benefits from accurate financial information.
4Question 4.
True or False: A trial balance ensures that total debits equal total credits.
- True
- False
Show hintHide hint
Remember what trial balance is used for.
Question 5.
Imagine a company sold products worth $1,000 on credit and received $600 in cash. Create the journal entries and subsequently, the ledger entries for this transaction.
Show hintHide hint
Think of how both cash and credit transactions affect different accounts.
Question 6.
A trial balance shows debits of $20,000 and credits of $19,500. What could be potential reasons for this discrepancy and how would you find it?
Show hintHide hint
Consider how each entry could impact the overall balance.

4 more questions in this section. Enroll free to practise them all.