CPB / BookKeeping Bookkeeping Ledger 4 — Questions and Answers
Question 1: When a transaction is recorded in the journal and then posted to the ledger, which step comes first?
- Posting to the ledger
- Recording in the journal (Correct answer)
- Preparing the trial balance
- Closing the accounts
Correct answer: Recording in the journal
The journal entry is always recorded first (original book of entry), and then the amounts are posted to the appropriate ledger accounts.
Question 2: A debit entry to an expense account in the ledger will:
- Decrease the expense balance
- Increase the expense balance (Correct answer)
- Transfer the expense to revenue
- Create a liability
Correct answer: Increase the expense balance
Expense accounts have a normal debit balance, so debiting an expense account increases its balance.
Question 3: What information is typically NOT found in a general ledger account entry?
- Date of the transaction
- The name of the customer placing the order (Correct answer)
- Amount debited or credited
- A reference to the journal entry source
Correct answer: The name of the customer placing the order
Customer names belong in the accounts receivable subsidiary ledger; the general ledger account entry typically shows the date, reference, and debit/credit amount.
Question 4: Which of the following errors would NOT be detected by a trial balance?
- A debit posted to the wrong account (Correct answer)
- Posting a debit as a credit
- Omitting an entire journal entry from posting
- Adding an extra zero to both sides of an entry
Correct answer: A debit posted to the wrong account
Posting a debit to the wrong account still leaves total debits equal to total credits, so the trial balance remains in balance despite the error.
Question 5: An account number written in the journal's posting reference column indicates:
- The entry has not yet been posted
- The entry has been posted to the ledger (Correct answer)
- The entry was voided
- The entry requires manager approval
Correct answer: The entry has been posted to the ledger
Writing the ledger account number in the journal's posting reference column confirms that the entry has been successfully posted to that ledger account.
Question 6: Which of the following best describes the 'footing' of a ledger account column?
- The account's closing entry
- The total of all amounts in a single column (Correct answer)
- The difference between debits and credits
- The last entry posted to the account
Correct answer: The total of all amounts in a single column
Footing refers to the process of totaling all amounts in a single column of a ledger account (separately for debits and credits).
Question 7: The general ledger is sometimes called the 'book of ___' entry.
- original
- secondary
- final (Correct answer)
- adjusting
Correct answer: final
The general ledger is called the book of final entry because transactions flow from the journal (original entry) to the ledger (final entry) before financial statements are prepared.
CPB / BookKeeping Bookkeeping Ledger 4
When a transaction is recorded in the journal and then posted to the ledger, which step comes first?