Journal Entries in Accounting

What is the purpose of a journal entry in accounting?

To record financial transactions

To calculate profit and loss

To prepare financial statements

To reconcile bank accounts

Which of the following accounts would be debited in a journal entry for a sale of goods?

Which of the following accounts would be credited in a journal entry for payment of rent expense?

What is the purpose of posting journal entries to the general ledger?

To summarize financial transactions

To calculate net income

To prepare trial balance

To record adjusting entries

Which of the following accounts would be debited in a journal entry for the purchase of equipment?

What is the purpose of an adjusting journal entry?

To correct errors in previous journal entries

To record daily business transactions

To update account balances at the end of an accounting period

To close temporary accounts

Which of the following accounts would be credited in a journal entry for the accrual of salaries expense?

What is the purpose of a trial balance in accounting?

To identify errors in journal entries

To calculate net income

To prepare financial statements

To ensure that debits equal credits

What is the correct order of the accounting cycle?

Which of the following accounts would be debited in a journal entry for the receipt of cash from customers?

What is the purpose of a closing journal entry?

To record daily business transactions

To adjust account balances

To transfer temporary account balances to the retained earnings account

To reconcile bank accounts

Which of the following accounts would be credited in a journal entry for the payment of utilities expense?

What is the purpose of a general ledger in accounting?

To record daily business transactions

To calculate net income

To summarize account balances

To prepare financial statements

Which of the following accounts would be debited in a journal entry for the purchase of inventory?

What is the purpose of a post-closing trial balance in accounting?

To identify errors in journal entries

To calculate net income

To ensure that debits equal credits

To verify that all temporary accounts have been closed

Which of the following accounts would be credited in a journal entry for the accrual of interest revenue?

What is the purpose of a subsidiary ledger in accounting?

To record daily business transactions

To calculate net income

To provide detailed information for specific accounts

To prepare financial statements

Which of the following accounts would be debited in a journal entry for the payment of accounts payable?

What is the purpose of a reversing journal entry in accounting?

To correct errors in previous journal entries

To record daily business transactions

To reverse the effects of an adjusting entry in the next accounting period

To reconcile bank accounts

Journal Entries in Accounting

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