Quiz 4: Recording Transactions
1. What is the first document where transactions are recorded?
A) Ledger
B) Journal
C)Trial Balance.
D) A company’s financial statements.
2. Why does a trial balance get used in accounting?
A) The main goal is to make financial statements.
B) To confirm that all the debits and credits add up to the same amount
C) To make a record of every transaction.
D) To write down all your assets and liabilities
3. What do we mean by a ledger?
A) Contracts are summarized by their associated accounts.
B) All of your transactions arranged by date
C) A record of your income and your expenses
D) A record of a company’s finances
4. A company that pays cash for an expense will enter this information as follows:
A) Debit cash and credit the expense
B) Taking a debit means reducing expense and a credit means adding cash to your account.
C) Debit cash and credit debit revenue
D) D) Record sales as debit and place revenue as credit.
5. Which one is NOT included in the accounting cycle.
A) Journalizing transactions
B) Updating the ledger by moving entries.
C) Doing tax returns
D) Making financial statements
6. What does a trial balance that does not balance indicate?
A) All transactions are recorded correctly
B) There is an error in recording transactions
C) The company is profitable
D) Assets are greater than liabilities
1. What is the first document where transactions are recorded?
A) Ledger
B) Journal
C)Trial Balance.
D) A company’s financial statements.
2. Why does a trial balance get used in accounting?
A) The main goal is to make financial statements.
B) To confirm that all the debits and credits add up to the same amount
C) To make a record of every transaction.
D) To write down all your assets and liabilities
3. What do we mean by a ledger?
A) Contracts are summarized by their associated accounts.
B) All of your transactions arranged by date
C) A record of your income and your expenses
D) A record of a company’s finances
4. A company that pays cash for an expense will enter this information as follows:
A) Debit cash and credit the expense
B) Taking a debit means reducing expense and a credit means adding cash to your account.
C) Debit cash and credit debit revenue
D) D) Record sales as debit and place revenue as credit.
5. Which one is NOT included in the accounting cycle.
A) Journalizing transactions
B) Updating the ledger by moving entries.
C) Doing tax returns
D) Making financial statements
6. What does a trial balance that does not balance indicate?
A) All transactions are recorded correctly
B) There is an error in recording transactions
C) The company is profitable
D) Assets are greater than liabilities
