MCQs on "Ledger": Find the multiple choice questions on "Ledger", frequently asked for all competitive examinations.
Here are a few MCQs on Ledger for your better understanding of the topic.
Q:1.
A book of ledgers is also known as a ledger.
- A. Final entry
- B. Primary entry
- C. Original entry
- D. None of the Above
Explanation: Every company’s bookkeeping requires the use of a general ledger. A general ledger, often known as a “book of final entry,” is a book that records a company’s financial transactions. In a double-entry system, they are recorded as debits or credits, subsequently checked by a trial balance. Corporate managers, accountants, investors, analysts, and other stakeholders utilise general ledgers to assess a company’s financial performance. In this post, we’ll go over what a general ledger is, its com
Q:2.
Which of the following is a ledger account?
- A. Events
- B. Journal
- C. Transactions
- D. None of the Above
Explanation: A ledger collects all journal transactions for all assets and liabilities, income or expenses in the financial statement. The balance is then transferred to the trial balance to keep different accounts.
Q:3.
The method of transferring items from a journal into their respective ledger accounts or journals is known as.
- A. Balancing
- B. Arithmetic
- C. Entry
- D. Posting
Explanation: A journal is a book that records all transactions. It doesn’t contain details about each account. Ledgers contain information about individual accounts. This allows each transaction to be recorded. Each journal item is then transferred to their account’s ledger. This is called posting.
Q:4.
A ledger column that connects the entry to the journal is called as
- A. Credit column
- B. L.F column
- C. J.F column
- D. Debit column
Explanation: J.F. Number is the number entered into the ledger when they made entries to their accounts. This helps determine if all transactions have been properly posted into their respective accounts. It is recorded when the transaction is posted and not at the time it is recorded.
Q:5.
Refer to the left side of the ledger account as.
- A. Debit side
- B. Credit side
- C. Footing
- D. Balance
Explanation: A ledger is a book that contains all accounts related to assets, liabilities, capital, expenses, and revenues. It’s a complete set of accounting for a business enterprise. A ledger account can have two sides: the left-hand side and the right-hand side. The left-hand side of the screen is known as the debit side, while the right side is the credit side.
Q:6.
The principal book Ledger contains.
- A. All accounts
- B. Personal accounts only
- C. Only real accounts
- D. Nominal accounts are the only ones
Explanation: A ledger is simply a book that contains all the accounts of a business enterprise, whether they are Real, Personal, or Nominal. In accounting, the “principal book” is also called the ledger. It is also known as the “Principal Book” because transactions first entered into a journal or other subsidiary books are then finally included in the ledger.
Q:7.
Accounts are generally be closed using the statement.
- A. To/By balance B/D
- B. Balance c/d
- C. Balance b/d
- D. To/By balance C/d
Explanation: The statement “balance” indicates that the balance for the year under consideration has been taken down. This is because the closing balance in the ledger is always transferred into the next accounting period. The difference amount, which is denoted “by balance c/d” or “to balance c/d”, is the amount that was inserted on the balancing side of the account to balance it.
Q:8.
When a debit balance is created, the account becomes active.
- A. The debit side has more entries than the credit side
- B. The debit amount exceeds the credit amount
- C. The last entry to the debit side of the ledger for the accounting period
- D. None of the above
Explanation: A debit balance refers to an account balance with a positive balance on the left side. A debit balance is an account that has a negative balance. This includes assets, losses, and expenses. A debit balance is a negative balance in a bank checking account. This account is considered overdrawn and is therefore not allowed to have any negative balance. The bank will simply refuse to honour any checks that could cause the account to have a debit balance. Alternatively, the bank may increase the a
Q:9.
Which of these items will appear on the credit side in the ledger account?
- A. Rent expenses
- B. Cash received
- C. Received a Discount
- D. Purchases
Explanation: The buyer will receive a discount if the seller allows it. The supplier will generally allow a discount when a transaction is on credit, such as trade, early payments, and large volume purchase discounts.
Q:10.
Which of these items is used to prepare the trial balance?
- A. Ledger account
- B. Balance sheet
- C. Cash account
- D. Journal
Explanation: The base for preparing the trial balance is the ledger account. You can then prepare the trial balance by listing every closing balance in the general ledger accounts, either as a debit balance or credit balance.
