CPB / BookKeeping Bookkeeping Ledger 2

Question 1

What is the purpose of a subsidiary ledger?

Accepted Answer

To provide detailed records supporting a control account

Answer

To replace the general ledger

Answer

To record only cash transactions

Answer

To summarize annual financial data

Question 2

Which account in the general ledger corresponds to the accounts receivable subsidiary ledger?

Accepted Answer

Accounts Receivable control account

Answer

Accounts Payable control account

Answer

Revenue control account

Answer

Cash control account

Question 3

When is a ledger account said to have a 'zero balance'?

Accepted Answer

When total debits equal total credits

Answer

When only credits have been posted

Answer

When the account has no transactions

Answer

When the account is closed permanently

Question 4

In a standard T-account, where are credit entries recorded?

Accepted Answer

Right side

Answer

Left side

Answer

Center column

Answer

Top of the account

Question 5

What does 'posting' mean in bookkeeping?

Accepted Answer

Transferring journal entry amounts to ledger accounts

Answer

Mailing financial statements to stakeholders

Answer

Preparing the trial balance

Answer

Adjusting entries at period end

Question 6

Which of the following best describes a 'running balance' ledger format?

Accepted Answer

A ledger with separate debit, credit, and balance columns updated after each entry

Answer

A ledger that only shows year-end balances

Answer

A ledger used only for cash accounts

Answer

A ledger that consolidates multiple accounts

Question 7

If the accounts payable subsidiary ledger totals $15,000, what should the Accounts Payable control account balance be?

Accepted Answer

$15,000

Answer

$0

Answer

$7,500

Answer

It can differ if adjustments were made