Chapter 2 Analyzing and Recording Business Transactions

Question

2.3 Demonstrate the use of the general journal and the general ledger to record business transactions

1) The general journal was developed to organize transactions by account.

2) The posting reference column of the general ledger shows the sources of the transferred information.

3) The general journal is used to record only the revenue transactions of a business.

4) The act of recording a transaction is called "journalizing".


5) Journalizing is the transfer of information from the general journal to the general ledger.

6) The posting reference column of the general journal will include the number of the account to which the information is being posted.

7) Transactions are recorded in order of the dollar amount of the transaction.

8) Chronological order dictates the order in which transactions are journalized.

9) Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

A) the date.

B) the amount debited or credited.

C) the posting reference column with the account number of the posting.

D) the account name that was involved in the transaction.

E) the dollar value.


10) Instead of T-accounts, businesses more than likely use a:

A) chart of accounts.

B) balance sheet.

C) general ledger.

D) general journal.

E) income statement.

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