Bookkeeping Journal Test

Question 1

Mark the journals that are special.

Accepted Answer

Sales journal

Answer

Special journals are designed to efficiently record specific types of high-volume transactions. Common examples include the Sales Journal for credit sales, the Purchases Journal for credit purchases, and the Cash Payments Journal for all cash outflows. A Sales Returns and Allowances Journal may also be used for recording customer returns. The General Journal is used for transactions that don't fit into any special journal.

Question 2

Daybooks are also called.

Accepted Answer

Bookkeeping journals

Answer

Journals are often called daybooks because transactions are recorded in them daily, in chronological order, as they occur. They serve as the initial record of financial events before being transferred to the ledgers. Therefore, 'bookkeeping journals' is another term for these records.

Question 3

What is the source of the information in the bookkeeping journals?

Accepted Answer

The accounting source documents

Answer

The information recorded in bookkeeping journals comes directly from accounting source documents. These are the original pieces of evidence that verify a transaction, such as invoices, receipts, bank statements, and check stubs. Source documents provide the necessary details to accurately record entries in the journals.

Question 4

What are bookkeeping journals?

Accepted Answer

Books of original entry

Answer

Bookkeeping journals are known as 'books of original entry' because they are the very first place where financial transactions are formally recorded in the accounting system. Transactions are entered chronologically in journals before being summarized and transferred to the ledgers.

Question 5

On which side of the ledger do debits appear?

Accepted Answer

The left hand side

Answer

Consistent with the T-account format, debits are always recorded on the left-hand side of a ledger account. This is a fundamental rule of double-entry bookkeeping, ensuring clarity and consistency in financial record-keeping.

CPB / BookKeeping Practice Test

CPB / BookKeeping Practice Test

Bookkeeping Journal Test