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

A subsidiary ledger contains detailed records for individual accounts that are summarized in a corresponding control account in the general ledger.

Question 2

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

Accepted Answer

Accounts Receivable control account

Answer

The Accounts Receivable control account in the general ledger must equal the total of all individual customer balances in the accounts receivable subsidiary ledger.

Question 3

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

Accepted Answer

When total debits equal total credits

Answer

A ledger account has a zero balance when the sum of all debit entries equals the sum of all credit entries, resulting in no net balance.

Question 4

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

Accepted Answer

Right side

Answer

Credit entries are always recorded on the right side of a T-account, while debit entries are recorded on the left side.

Question 5

What does 'posting' mean in bookkeeping?

Accepted Answer

Transferring journal entry amounts to ledger accounts

Answer

Posting is the process of transferring debit and credit amounts from journal entries to the corresponding accounts in the general ledger.

CPB / BookKeeping Practice Test

CPB / BookKeeping Practice Test

CPB / BookKeeping Bookkeeping Ledger 2