1. A ledger is called a book of.
a) Primary entry
b) Final entry
c) Original entry
d) None of the above
Answer: b
2. From which of the following is a ledger account prepared.
a) Transactions
b)Journal
c) Events
d) None of the above
Answer: b
3.The process of transferring of items from a journal to their
respective ledger accounts is called as.
(a) Entry
(b) Arithmetic
(c) Balancing
(d) Posting
Answer: d
4. The ledger column that links the entry with the journal is called as.
(a) J.F column
(b) L.F column
(c) Credit column
(d) Debit column
Answer: a
5. The left hand side of the ledger account is referred to as.
(a) Footing
(b) Credit side
(c) Debit side
(d) Balance
Answer: c
6. Ledger is a principal book that contains.
(a) Real accounts only
(b) Personal accounts only
(c) All accounts
(d) Nominal accounts only
Answer: c
7. Accounts that have credit balance are closed by using the
statement.
(a) By balance b/d
(b) By balance c/d
(c) To balance b/d
(d) To balance c/d
Answer: d
8. An account is having debit balance is established when.
(a) The last entry of the accounting period was posted on the debit
side
(b) The amount of debit exceeds the amount of the credits
(c) There are more entries on the debit side than on the credit side
(d) None of above
Answer: b
9. Which of the following item will be appearing on the credit side of
the ledger account?
(a) Discount received
(b) Cash received
(c) Rent Expenses
(d) Purchases
Answer: a
10. Among these, which item is used as the base for preparing trial
balance?
(a) Cash account
(b) Balance sheet
(c) Journal
(d) Ledger account
Answer: d
11. If the debit side is greater than its credit side, it’s called a “debit”
bank account.
A. Bank Overdraft
B. Bank Loan
C. Cash at Bank
D. None
Answer: C. Cash at Bank
12. Which accounts are included in the accounts payable ledger
A. Sales Accounts
B. Vendor Accounts
C. Customer Accounts
D. None
Answer: B. Vendor Accounts
