Lesson 5

Question 1

also called the “book of original entries,” is the accounting record where business transactions are first recorded.

Answer 1

The journal

Question 2

is used to record transactions with similar nature (e.g., Sales journal, Purchases journal, Cash receipts journal, and Cash disbursements journal)

Answer 2

Special Journal

Question 3

All other transactions that cannot be recorded in the special journals are recorded in the

Answer 3

General Journal

Question 4

s used to classify the effects of business transactions on the accounts. It is also called the “book of final entries.”

Answer 4

Ledger

Question 5

contains all the accounts appearing in the trial balance.

Answer 5

General ledger

Question 6

provides a breakdown of the balances of controlling accounts.

Answer 6

Subsidiary ledger

Question 7

Indicates the recording dates of the transactions.

Answer 7

Date colmun

Question 8

The accounts affected by business transaction are recorded in this column.

Answer 8

Account titles column

Question 9

The corresponding numberings of the accounts affected by the transaction are listed here

Answer 9

Account numbers column

Question 10

The monetary effects of the transaction to the accounts are recorded here

Answer 10

Debit & Credit

Question 11

each transaction is recorded in two parts – debit and credit

Double-entry System

Answer 11

Concept of duality

Question 12

each transaction is recorded in terms of equal debits and credits.

Answer 12

Concept of equilibrium

Question 13

are presented in the financial statements as** deduction** to their related accounts.

Answer 13

Contra accounts

Question 14

are presented in the financial statements as addition to their related accounts.

Answer 14

Adjunct account