LEDGER

1. If debit side of bank account is greater than credit side it represents?

(a) Cash at Bank

(b) Bank Loan

(c) Bank Overdraft

(d) None of them

2. The payment to a creditor will?
(a) Increase one asset and decrease another

(b) Decrease an asset and decrease owner’s equity

(c) Decrease an asset and decrease a liability

(d) Increase an asset and increase a liability

3. The T-account is used to summarize which of the following?
(a) Increase and decrease to a single account in the accounting system

(b) Debit and credit to a single account in the accounting system

(c) Changes in specific account balances over a time period

(d) All of the above describe how T-accounts are used by accountants
4. Credit means?
(a) Entries on the right hand side

(b) A decrease in liabilities

(c) An increase in expenses

(d) An increase in assets

5. Ledger is a principal book in which?
(a) Only real account are kept
(b) Only personal accounts are kept

(c) All accounts are kept

(d) Only nominal accounts are kept

6. The left hand side of account is referred to as?
(a) The Balance

(b) A Debit

(c) A Credit

(d) A footing
7. Excess of Debit side over Credit side is called?
(a) Debit Balance

(b) Credit Balance

(c) Liability Accounts

(d) All of before

8. Which item will appear on the credit side of ledger account?
(a) Cash received

(b) Purchases

(c) Discount received

(d) Rent Expenses

9. The process of transferring the debit and credit items from a journal to their
respective account in the ledger is termed as?
(a) Balancing

(b) Posting

(c) Arithmetic

(d) Entry
10. Ledger is a book of?
(a) Original entry

(b) Final entry

(c) Secondary entry

(d) All cash transactions

 
 
11. The account is a device used by the accountant to record?
(a) Increase

(b) Decrease

(c) Increase & Decrease

(d) None of them

12. The balance of cash account indicates?
(a) Net cash on hand

(b) Net loss for the period

(c) Net income for the period

(d) Net worth of the business

13. Which of the following item is not included in the Cash account?
(a) Purchases of Rs. 10,000

(b) Sales of Rs.5,000

(c) Received cash for Salman Rs. 2,000

(d) Credit sales of Rs. 22,000

14. Which accounts belong in the accounts payable ledger?
(a) Customer Accounts

(b) Vendor Accounts

(c) Sales Accounts

(d) None
15. An account is said to have a debit balance if?
(a) The amount of debit exceeds the amount of the credits

(b) There are more entries on the debit side than on the credit side

(c) The last entry of the accounting period was posted on the debit side

(d) None of above

16. Book of account where transaction related to a particular person or thing are
recorded?
(a) General Journal

(b) Trial balance

(c) General Ledger

(d) Worksheet
17. When a Liability is reduced or decreased, it is recorded on the?
(a) Right or debit side of the account

(b) Left or debit side of the account

(c) Left or credit side of the account

(d) Right or credit side of the account

18. General Ledger is also known as?
(a) Book of original entry

(b) T Account

(c) Source document

(d) Voucher
19. The records that are kept for the individual asset, liability, equity, revenue,
expense, and drawing components are known?
(a) Journals

(b) Vouchers

(c) Accounts

(d) Statements
20. The respective normal account balances of Sales, Sales Returns and Allowances,
and Sales Discounts are?
(a) Credit, Credit, Credit

(b) Debit, credit, debit

(c) Credit, Debit, Debit

(d) Credit, Debit, Credit