ming to the Ledger and Trial Balance Preparation 6-2 Multiple Choice-A 1. What functions do general ledger served in the accounting process? a. summarizing c) journalizing b. classifying d) interpreting 2. Ledger has been defined as "group of accounts" because- a) it shows all journal entries posted to the ledger b) all accounts in the ledger were all footed c) it shows from assets down to expenses d) all of the above 3. The purpose of posting journal entries to the ledger- a) so that trial balance can be prepared b) to make sure that debit and credit are equal c. to prove the equality of debit and credit d. to obtain updated account balance 4. Posting is the process of- a) reconciling entries from the journal to the ledger b) transferring entries from the journal to the ledger c) reconciling entries from the ledger to the journal d) transferring entries from the ledger to the journal 5. Which of the following does classifying refer to? a) recording c) posting b) journalizing d) summarizing 6. Posting process- a) normally occurs before journalizing b) transfer of journal entries to the ledger c) transfer of ledger transactions data to the journal d) none of these 1. The books of account that shows similar accounts that are found in the chart of accounts of a business entity- c) General Ledger a) trial balance d) Balance Sheet b) chart of accounts 207 8. List of account balances that are arranged from assets down to the last item of expense accounts- c) Trial Balance a) Chart of Accounts b) Flow Chart d) General Ledger 9. If a person wants to know the balances of a certain account, he should refer to the- a) book of original entry c) book of accounts b) book of final entry d) none of these 10. A columnar statement that summarizes the debit and credit entries of each account in the ledger- a) trial balance c) balance sheet b) statement of account d) subsidiary ledger 11. Which of the following statements is false concerning a trial balance? a) proves the mathematical accuracy of journalized transactions b) will not balance if the correct journal entry is omitted in its entirety c) a correct journal entry is posted twice d) proves that all transactions have been recorded 12. Which of the following is included in putting a heading of a trial balance? a) name of the business or proprietor b) title of the report c) period covered by the report d) all of the above 13. If the total of the debit entries exceeds to the total of the credit entries after footing the account- a) the account is said to be in-balance b) the account is said to be a credit balance c) the account is said to be out of balance d) the account is said to be in a debit balance 14. If the total of a credit entries exceed the total of the debit entries after footing the account- a) the account is said to be in-balance b) the account is said to be in a credit balance c) the account is said to be out of balance d) the account is said to be in a debit balance 15. Which of the following is of lesser importance in preparing trial balance? a) debit amount b) credit amount c) account number of an account d) final total 16. The accounts that remained open after footing the ledger is called- a) open account b) sliding error c) posting error d) footing error 17. The equality of debit and credit entries in the ledger can be verified at the end of the period by means of- a) balance sheet b) reconciliation statement c) trial balance d) fundamental accounting equation 18. Which of the following statements is true concerning a trial balance? a) a trial balance will be in-balance if a journal entry is omitted in its entirety b) a trial balance will be out-balance if a credit entry is posted on the debit side c) it is double-ruled report extracted from account balance of the general ledger d) all of the above 19. A trial balance will record- a) the account balance of the general ledger b) accounts with zero balances in the ledger c) the Balance Sheet Accounts d) the Income Statements Accounts 20. Which of the following errors will cause a trial balance to be "out of balance"? a) when the entire journal entry was not posted. b) when journal entry is doubly posted. c) when a debit entry in the journal was credited d) all of the above 21. A trial balance will- a) show financial position of an entity b) show a list of account balances from general ledger c) establish the correctness of accounting records d) prove the correctness of debit and credit entries
