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Understanding the general ledger structure MCQs on Peach Tree
By: Prof. Dr. Fazal Rehman Shamil | Last updated: August 1, 2024
What is the primary purpose of the general ledger in Peachtree? a) To record all financial transactions of the company b) To manage customer invoices and payments c) To track inventory levels and costs d) To generate sales reports and forecasts Answer: a) To record all financial transactions of the company
Which Peachtree feature provides a detailed view of transactions recorded in each general ledger account? a) General Ledger Report b) Journal Entries Report c) Accounts Receivable Report d) Accounts Payable Report Answer: a) General Ledger Report
In Peachtree, how is the general ledger typically organized? a) By account type and number b) By transaction date and amount c) By customer and vendor d) By invoice and payment status Answer: a) By account type and number
What information is typically included in each general ledger account? a) Account number, account name, debit and credit entries, and balance b) Customer name, invoice number, payment amount, and date c) Vendor name, bill amount, payment terms, and due date d) Sales order number, product details, and shipping information Answer: a) Account number, account name, debit and credit entries, and balance
How can you view the details of a specific general ledger account in Peachtree? a) By accessing the General Ledger module and selecting the account b) By generating a Journal Entries Report c) By reviewing the Accounts Payable module d) By creating a new transaction in the Sales Orders module Answer: a) By accessing the General Ledger module and selecting the account
What type of transactions are recorded in the general ledger? a) All financial transactions including sales, purchases, payments, and receipts b) Only sales and purchase transactions c) Only customer payments and vendor bills d) Only adjustments and corrections Answer: a) All financial transactions including sales, purchases, payments, and receipts
Which Peachtree report helps ensure that all general ledger accounts are balanced? a) Trial Balance Report b) General Ledger Report c) Financial Statements Report d) Journal Entries Report Answer: a) Trial Balance Report
In Peachtree, how are debits and credits typically recorded in the general ledger? a) Debits increase asset and expense accounts, while credits increase liability and income accounts b) Debits increase liability and income accounts, while credits increase asset and expense accounts c) Debits and credits are recorded equally for all transactions d) Debits and credits are only used for adjusting entries Answer: a) Debits increase asset and expense accounts, while credits increase liability and income accounts
To correct an error in a general ledger account, what should you do? a) Create a correcting journal entry to adjust the account balance b) Edit the original entry directly in the general ledger c) Delete the erroneous transaction and re-enter it d) Adjust the account balance manually without creating an entry Answer: a) Create a correcting journal entry to adjust the account balance
What does the balance of a general ledger account represent? a) The net result of all debits and credits recorded in that account b) The total amount of all transactions processed in the Accounts Payable module c) The cumulative sales and payments made to customers d) The total value of all purchased inventory items Answer: a) The net result of all debits and credits recorded in that account
