Journal, Ledger & Cash Book MCQs
Which book is used to record all transactions in chronological order?
A) Ledger
B) Cash Book
C) Journal
D) Trial Balance
Answer: C
The process of recording transactions in the journal is called:
A) Posting
B) Summarizing
C) Journalizing
D) Balancing
Answer: C
Which of the following is a primary book of accounting?
A) Ledger
B) Cash Book
C) Trial Balance
D) Income Statement
Answer: B
The Ledger is also known as:
A) Book of Original Entry
B) Book of Final Entry
C) Book of Accounts
D) Book of Transactions
Answer: C
The main purpose of the Cash Book is to record:
A) Credit transactions only
B) Debit transactions only
C) Cash and bank transactions
D) Adjusting entries
Answer: C
Which book helps in preparing the Trial Balance?
A) Ledger
B) Cash Book
C) Journal
D) Bank Reconciliation Statement
Answer: A
A journal entry that affects two or more accounts is called a:
A) Compound entry
B) Simple entry
C) Single entry
D) Double entry
Answer: D
Which of the following is NOT a type of cash book?
A) Single column cash book
B) Double column cash book
C) Triple column cash book
D) Compound cash book
Answer: D
The Cash Book is a:
A) Nominal account
B) Personal account
C) Real account
D) Contra account
Answer: C
Which book helps in maintaining the record of discount received and discount allowed?
A) Cash Book
B) Journal
C) Ledger
D) Sales Book
Answer: A
The process of transferring entries from the journal to the ledger is known as:
A) Posting
B) Balancing
C) Ledgerizing
D) Summarizing
Answer: A
Which book is considered the book of final entry?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: B
The opening entry in the Cash Book is always a debit to:
A) Cash account
B) Bank account
C) Capital account
D) Drawings account
Answer: A
Which type of ledger is used to record all transactions related to a specific customer or supplier?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: B
Which book records only cash transactions?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: C
The process of classifying and summarizing transactions recorded in the journal is known as:
A) Posting
B) Balancing
C) Ledgerizing
D) Summarizing
Answer: D
Which book helps in preparing the financial statements of an organization?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: B
Which type of cash book has two columns, one for cash and one for bank?
A) Single column cash book
B) Double column cash book
C) Triple column cash book
D) Compound cash book
Answer: B
The process of recording transactions directly in the ledger is known as:
A) Journalizing
B) Posting
C) Ledgerizing
D) Balancing
Answer: C
Which book helps in detecting errors and frauds in accounting?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: D
A cash book with an additional column for discount allowed and discount received is called a:
A) Double column cash book
B) Triple column cash book
C) Single column cash book
D) Petty cash book
Answer: B
The process of verifying the equality of debit and credit balances in the ledger is called:
A) Posting
B) Balancing
C) Ledgerizing
D) Journalizing
Answer: B
Which book serves as the basis for preparing the financial statements of an organization?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: D
Which type of ledger is used to record all revenue and expense transactions?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: D
The Cash Book is closed by transferring the balance to the:
A) Capital account
B) Drawings account
C) Bank account
D) General ledger
Answer: A
Which book records transactions chronologically in the order they occur?
A) Ledger
B) Cash Book
C) Journal
D) Trial Balance
Answer: C
The process of transferring entries from the journal to the ledger is called:
A) Journalizing
B) Posting
C) Ledgerizing
D) Summarizing
Answer: B
Which book contains the accounts of debtors and creditors?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: B
The process of closing the ledger accounts at the end of an accounting period is known as:
A) Posting
B) Opening
C) Balancing
D) Closing
Answer: D
Which type of ledger is used to record all transactions related to assets, liabilities, and capital?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: A
The Ledger is also known as:
A) Book of Original Entry
B) Book of Final Entry
C) Book of Accounts
D) Book of Transactions
Answer: B
Which book records all cash and bank transactions?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: C
A journal entry that affects two or more accounts is called a:
A) Compound entry
B) Simple entry
C) Single entry
D) Double entry
Answer: D
Which of the following is a primary book of accounting?
A) Ledger
B) Cash Book
C) Trial Balance
D) Income Statement
Answer: B
Which book helps in preparing the Trial Balance?
A) Ledger
B) Cash Book
C) Journal
D) Bank Reconciliation Statement
Answer: A
The main purpose of the Cash Book is to record:
A) Credit transactions only
B) Debit transactions only
C) Cash and bank transactions
D) Adjusting entries
Answer: C
Which book is used to record all transactions in chronological order?
A) Ledger
B) Cash Book
C) Journal
D) Trial Balance
Answer: C
The process of recording transactions in the journal is called:
A) Posting
B) Summarizing
C) Journalizing
D) Balancing
Answer: C
Which book helps in maintaining the record of discount received and discount allowed?
A) Cash Book
B) Journal
C) Ledger
D) Sales Book
Answer: A
Which of the following is NOT a type of cash book?
A) Single column cash book
B) Double column cash book
C) Triple column cash book
D) Compound cash book
Answer: D
The Ledger is also known as:
A) Book of Original Entry
B) Book of Final Entry
C) Book of Accounts
D) Book of Transactions
Answer: B
The opening entry in the Cash Book is always a debit to:
A) Cash account
B) Bank account
C) Capital account
D) Drawings account
Answer: A
Which type of ledger is used to record all transactions related to a specific customer or supplier?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: B
The process of transferring entries from the journal to the ledger is known as:
A) Posting
B) Balancing
C) Ledgerizing
D) Summarizing
Answer: A
Which book helps in preparing the financial statements of an organization?
A) Journal
B) Ledger
C) Cash Book
D) Trial Balance
Answer: B
Which type of cash book has two columns, one for cash and one for bank?
A) Single column cash book
B) Double column cash book
C) Triple column cash book
D) Compound cash book
Answer: B
The process of verifying the equality of debit and credit balances in the ledger is called:
A) Posting
B) Balancing
C) Ledgerizing
D) Journalizing
Answer: B
Which book contains the accounts of debtors and creditors?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: B
Which type of ledger is used to record all revenue and expense transactions?
A) General ledger
B) Sales ledger
C) Purchase ledger
D) Nominal ledger
Answer: D
The process of closing the ledger accounts at the end of an accounting period is known as:
A) Posting
B) Opening
C) Balancing
D) Closing
Answer: D