11
Cash is withdrawn from the bank for office use. Correct journal entry will be ________ .
A.
B.
C.
D.
Answer & Solution
Cash increases (debit), and the bank balance decreases (credit).
12
If a business receives $2,000 from a debtor, the journal entry is:
A.
B.
C.
D.
Answer & Solution
Cash increases (debit), and the debtor’s balance decreases (credit).
13
Which account is credited when rent is paid in cash?
A.
B.
C.
D.
Answer & Solution
Rent is an expense (debit), and cash (credit) is reduced when rent is paid.
14
Journal entry for owner’s investment in a business _____________ .
A.
B.
C.
D.
Answer & Solution
Cash (asset) increases, and capital (owner’s equity) also increases.
15
The ledger is also known as:
A.
B.
C.
D.
Answer & Solution
The ledger contains all the accounts and is used to prepare financial statements.
16
The process of transferring journal entries to the ledger is __________ .
A.
B.
C.
D.
Answer & Solution
Posting involves recording transactions from the journal into respective ledger accounts.
17
Which of the following accounts will appear in the general ledger?
A.
B.
C.
D.
Answer & Solution
All accounts from the journal are posted into the general ledger.
18
All of the following is a type of ledger except __________ .
A.
B.
C.
D.
Answer & Solution
The cash book is a separate subsidiary book, not a type of ledger.
19
When the sum of the debit side of an account exceeds that of the credit side, it is called a:
A.
B.
C.
D.
Answer & Solution
If debits exceed credits, the account has a debit
balance.
20
What happens when a trial balance does not match?
A.
B.
C.
D.
Answer & Solution
A mismatch in the trial balance suggests errors in
recording transactions.
