Journal, Ledger & Cash Book MCQs

By: Prof. Dr. Fazal Rehman | Last updated: July 1, 2024

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
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