U3, AOS 1 - KK8 - Recording in the GL & GJ Flashcards
What is a general journal?
A general journal is a record where all transactions are initially documented in chronological order.
True or False: The general ledger contains detailed information about each account.
True
Fill in the blank: The process of transferring information from the general journal to the general ledger is called __________.
posting
What is the main purpose of the general ledger?
The main purpose of the general ledger is to summarize all financial transactions and maintain account balances.
Multiple Choice: Which of the following is NOT typically found in a general journal entry? A) Date B) Account titles C) Financial statements D) Amounts
C) Financial statements
What are the two sides of a journal entry called?
Debits and credits.
True or False: Each transaction recorded in the general journal affects at least two accounts.
True
Short Answer: What is the significance of the ‘posting reference’ in the general journal?
The ‘posting reference’ indicates the account and page number in the ledger where the transaction is posted.
Fill in the blank: The left side of a journal entry is known as the __________ side.
debit
Multiple Choice: Which of the following accounts would typically be debited in an expense transaction? A) Cash B) Revenue C) Expense D) Liability
C) Expense
What is the effect of a debit on an asset account?
A debit increases the balance of an asset account.
True or False: The general ledger is updated before the general journal.
False
Short Answer: How often should a company post entries from the general journal to the general ledger?
Entries should be posted regularly, often daily or weekly, depending on the volume of transactions.
Fill in the blank: The right side of a journal entry is known as the __________ side.
credit
Multiple Choice: In a double-entry accounting system, what must always be true? A) Debits must equal credits B) Debits can exceed credits C) Credits can exceed debits D) There is no relation
A) Debits must equal credits
What is the role of the trial balance in relation to the general ledger?
The trial balance is a report that summarizes the balances of all accounts in the general ledger to ensure that debits equal credits.
True or False: General journal entries must be recorded in the order they occur.
True
Short Answer: What information is typically included in a journal entry?
Date, account titles, amounts, and a brief description of the transaction.
Fill in the blank: Errors in the general ledger can lead to inaccurate __________.
financial statements
Multiple Choice: Which document is used to verify that the general ledger accounts are accurate? A) Income statement B) Balance sheet C) Trial balance D) Cash flow statement
C) Trial balance
