MCQs on "MCQs on Journal Entries": Find the multiple choice questions on "MCQs on Journal Entries", frequently asked for all competitive examinations.
Here are a few MCQs on MCQs on Journal Entries for your better understanding of the topic.
Q:1.
Which of the terms given below will be regarded as the book of original entry?
- A. The trial balances
- B. The general journal
- C. The general ledger
- D. The payment and receipt account
Explanation: The general journal is the book of original entry, as all the business transactions are recorded in this book initially.
Q:2.
The shareholder’s equity will not be affected by the following transactions?
- A. The dividends to stockholders
- B. The total net loss incurred
- C. The investment of the cash by the stockholders
- D. The land purchase made from proceeds of a bank loan
Explanation: The land purchase made from proceeds of bank proceedings will have no impact on shareholders’ equity because its impact will be limited to the liability and assets only.
Q:3.
The cash withdrawal due to business from the proprietor should be put into which account?
- A. The purchase accounts
- B. The cash account
- C. The drawings account
- D. The capital accounts
Explanation: The cash withdrawal by the writer should be debited from the drawing account of the bank. However, the cash amount credits by the proprietor should go to the business’s cash account.
Q:4.
All the transactions of an organisation should be first recorded into which book or account?
- A. T accounts
- B. The equation of accounting
- C. The book of original entry
- D. The book of final entry
Explanation: The journal, also known as the book of the original entry, contains all the initial business transactions. As the name suggests, all the initial or the original transactions should be recorded in this book first.
Q:5.
Which of the following statements concerning journal entries are not correct?
- A. The journal entries show the effect of transactions
- B. The debited account titles are listed first in the journal
- C. The account balance is a provided by the journal entries
- D. Each journal entry should start with the date
Explanation: The journal entry records all the transactions of either economic or non-economic nature. It does not involve maintaining the account balance.
Q:6.
The goods which the customers return will be debited to which of the following accounts?
- A. The return inward
- B. The return outward
- C. The account of the purchases
- D. The customer A/C
Explanation: The journal entry for the goods written by the customer will be debited to the sales return of the return inwards account.
Q:7.
The journalist transactions are recorded in which order?
- A. The alphabetical order
- B. The chronological order
- C. The increasing order
- D. The decreasing order
Explanation: The order by date format is used for transactions recorded by the journal in debit and credit format. Hence, the journal transactions will occur in chronological order, with the earliest entry being recorded first.
Q:8.
What is the journal alternatively called?
- A. A book of the history of transactions
- B. The ledger books
- C. The entry book of transactions
- D. The day books
Explanation: The journal is a book in which the transactions are initially returned before posting them into accounts in the ledger. Hence, the journal is also called the daybook or book of original entries.
Q:9.
The entry made by the payee in his books of accounts on the receipt of the bill is known as?
- A. Drawer account Dr. to Bills payable account
- B. Drawee account Dr. to a bank account
- C. Bills receivable account Dr. to drawee of the bill
- D. Bank account Dr. discount account Dr .to bills receivable account
Explanation: When is the will received by the paying them the entry will be made in the bills receivable account Dr. to the drawee of the bill?
Q:10.
The receipt and the payment account are the summaries of which the following?
- A. The profit and the loss account
- B. The trading accounts
- C. The cash book with the date column
- D. The cash book without the date column
Explanation: The profit and loss are not accounted for in the receipt and payment account summary, nor is the trading account considered. The receipt and payment account summary will be of the cash book but excluding the date column.