Journalising MCQs
Which of the following is true about journalizing in accounting?
a) It involves recording financial transactions in a chronological order.
b) It involves summarizing financial transactions at the end of an accounting period.
c) It involves calculating financial ratios for analysis purposes.
d) It involves preparing financial statements for external reporting.
Answer: a) It involves recording financial transactions in a chronological order.
Which of the following is not a step in the journalizing process?
a) Analyzing the financial transactions.
b) Recording the transactions in a general journal.
c) Posting the journal entries to the general ledger.
d) Preparing the trial balance.
Answer: d) Preparing the trial balance.
Which account is typically debited when recording a purchase of inventory on credit?
a) Accounts Payable
b) Cash
c) Inventory
d) Accounts Receivable
Answer: c) Inventory
When a company receives cash for services rendered, which account is debited in the journal entry?
a) Cash
b) Accounts Payable
c) Revenue
d) Accounts Receivable
Answer: a) Cash
Journalising MCQs
Which of the following journal entries is correct for recording the payment of salaries?
a) Debit Salaries Expense, Credit Cash
b) Debit Cash, Credit Salaries Payable
c) Debit Salaries Payable, Credit Cash
d) Debit Cash, Credit Salaries Expense
Answer: a) Debit Salaries Expense, Credit Cash
When a customer returns goods previously purchased on credit, which account is debited in the journal entry?
a) Sales Returns
b) Accounts Payable
c) Inventory
d) Accounts Receivable
Answer: d) Accounts Receivable
Which of the following is true about the general journal?
a) It is a book of original entry used to record all transactions.
b) It is a book of final entry used to record adjusting entries.
c) It is a subsidiary ledger used to record accounts receivable transactions.
d) It is a subsidiary ledger used to record accounts payable transactions.
Answer: a) It is a book of original entry used to record all transactions.
Which of the following is a purpose of journalizing transactions?
a) To provide a summary of financial transactions.
b) To facilitate the preparation of financial statements.
c) To identify errors and discrepancies in the accounting records.
d) All of the above.
Answer: d) All of the above.
Journalising MCQs
Which account is typically credited when recording the sale of goods on credit?
a) Sales
b) Accounts Payable
c) Accounts Receivable
d) Cash
Answer: c) Accounts Receivable
What is the purpose of posting journal entries to the general ledger?
a) To ensure the accuracy of the journal entries.
b) To calculate the balance of each account.
c) To provide a summary of all financial transactions.
d) To prepare financial statements.
Answer: b) To calculate the balance of each account.
Which of the following accounts is typically debited when recording the receipt of cash from a customer?
a) Accounts Payable
b) Sales Revenue
c) Accounts Receivable
d) Cash Expense
Answer: c) Accounts Receivable
Which of the following is true about the general ledger?
a) It is a book of original entry used to record all transactions.
b) It is a book of final entry used to record adjusting entries.
c) It is a subsidiary ledger used to record accounts receivable transactions.
d) It is a book that contains individual accounts for all assets, liabilities, equity, revenue, and expense.
Answer: d) It is a book that contains individual accounts for all assets, liabilities, equity, revenue, and expense.
Journalising MCQs
When recording the purchase of equipment on credit, which account is typically credited?
a) Equipment
b) Accounts Payable
c) Cash
d) Accounts Receivable
Answer: b) Accounts Payable
Which of the following is the correct journal entry to record the payment of rent?
a) Debit Rent Expense, Credit Cash
b) Debit Cash, Credit Rent Payable
c) Debit Rent Payable, Credit Cash
d) Debit Cash, Credit Rent Expense
Answer: a) Debit Rent Expense, Credit Cash
Which of the following accounts is not closed at the end of the accounting period?
a) Revenue
b) Expense
c) Dividends
d) Cash
Answer: d) Cash
Which account is typically debited when recording the purchase of supplies for cash?
a) Supplies Expense
b) Accounts Payable
c) Cash
d) Accounts Receivable
Answer: c) Cash
Journalising MCQs
Which of the following is true about the posting process in journalizing?
a) Posting involves transferring amounts from the general journal to the general ledger.
b) Posting involves preparing financial statements.
c) Posting involves analyzing financial transactions.
d) Posting involves calculating financial ratios.
Answer: a) Posting involves transferring amounts from the general journal to the general ledger.
When recording the receipt of cash for a loan, which account is typically debited?
a) Cash
b) Loans Payable
c) Interest Expense
d) Accounts Receivable
Answer: a) Cash
Which of the following is a correct journal entry to record the sale of inventory on credit?
a) Debit Accounts Receivable, Credit Inventory
b) Debit Sales Revenue, Credit Cash
c) Debit Cash, Credit Inventory
d) Debit Inventory, Credit Accounts Payable
Answer: a) Debit Accounts Receivable, Credit Inventory
Which of the following is a purpose of journalizing transactions?
a) To provide a detailed record of financial transactions.
b) To calculate the total assets of a company.
c) To reconcile bank statements.
d) To prepare tax returns.
Answer: a) To provide a detailed record of financial transactions.
Journalising MCQs
Which account is typically debited when recording the payment of utility bills?
a) Utilities Expense
b) Accounts Payable
c) Cash
d) Accounts Receivable
Answer: a) Utilities Expense
Which of the following is true about journal entries?
a) They are always recorded in the general ledger.
b) They are only used for adjusting entries.
c) They affect at least two accounts.
d) They are recorded after the financial statements are prepared.
Answer: c) They affect at least two accounts.
When a company receives cash for services to be provided in the future, which account is credited in the journal entry?
a) Cash
b) Unearned Revenue
c) Accounts Receivable
d) Service Revenue
Answer: b) Unearned Revenue
Which account is typically credited when recording the purchase of office supplies on credit?
a) Office Supplies Expense
b) Accounts Payable
c) Cash
d) Accounts Receivable
Answer: b) Accounts Payable
Journalising MCQs
Which of the following is the correct journal entry to record the payment of wages?
a) Debit Wages Expense, Credit Cash
b) Debit Cash, Credit Wages Payable
c) Debit Wages Payable, Credit Cash
d) Debit Cash, Credit Wages Expense
Answer: a) Debit Wages Expense, Credit Cash
When a company receives cash from a customer as a prepayment for future services, which account is debited in the journal entry?
a) Cash
b) Unearned Revenue
c) Accounts Receivable
d) Service Revenue
Answer: a) Cash
Which of the following is true about the general journal?
a) It is a book of final entry used to record adjusting entries.
b) It is a subsidiary ledger used to record accounts payable transactions.
c) It is a book of original entry used to record all transactions.
d) It is a subsidiary ledger used to record accounts receivable transactions.
Answer: c) It is a book of original entry used to record all transactions.
When recording the receipt of cash from the sale of goods, which account is credited?
a) Sales Revenue
b) Accounts Payable
c) Accounts Receivable
d) Cash Expense
Answer: c) Accounts Receivable
Journalising MCQs
Which of the following accounts is typically debited when recording the purchase of equipment for cash?
a) Equipment
b) Accounts Payable
c) Cash
d) Accounts Receivable
Answer: a) Equipment
What is the purpose of journalizing transactions?
a) To provide a chronological record of financial transactions.
b) To calculate the net income of a company.
c) To determine the cash flow from operating activities.
d) To prepare tax returns.
Answer: a) To provide a chronological record of financial transactions.