AsterQuiz Ledgers Basics QuizOnline version Ledger basics by Teacher Gary T. Pelueta 1 What is the general ledger? a Main book of accounts recording all financial transactions b Purchase journal of purchases c Cash book of receipts 2 In double-entry accounting, every transaction must... a Debit greater than Credit b Debit equal Credit across accounts c Credit greater than Debit 3 What is a trial balance used for? a To record cash receipts and payments b To list customers’ balances only c To check that total debits equal total credits 4 What is a subsidiary ledger? a A secondary general ledger with no detail b A separate cash ledger c Detailed records for a control account in the general ledger 5 Posting is the process of... a Preparing the income statement b Transferring entries from journals to ledgers c Summarizing accounts in the trial balance 6 What does ‘carried down’ mean in ledger balances? a End-of-period balance brought into the next period b A balance that is ignored in the next period c Beginning balance reduced to zero 7 What is an opening entry? a Record only new purchases b Close all accounts at year-end c Record opening balances at the start of an accounting period 8 Closing entries are used to... a Record opening balances b Prepare the cash book for next period c Transfer revenues and expenses to the capital/retained earnings 9 Chart of accounts is best described as... a A summary of trial balance totals b A list of all account names used in the ledgers c A register of cash receipts only 10 What is a control account? a A general ledger account that summarizes data from a subsidiary ledger b A cash account used for petty cash c An informal note of balances
