If the debit side of a bank account is larger than the credit side, what does this show?
Correct answer C. Cash at bank
Topic / 38 questions
Ledger MCQs
Page 2 of Ledger multiple-choice questions with answers. Tap an option to check yourself.
Page 2 of 2
When goods are given away as charity, which account is credited?
Correct answer C. Purchases
What is regarded as the basis for preparing a trial balance?
Correct answer A. Ledger account
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If the debit side of an account exceeds the credit side, what is the account’s balance?
Correct answer A. Debit balance
What is the normal balance on a capital account?
Correct answer B. Credit balance
What is the normal balance of an asset account?
Correct answer D. Debit balance
What is the normal balance of a liability account?
Correct answer C. Credit balance
Which statement about the capital account is incorrect?
Correct answer A. Debit increases the capital account balance
What is the normal balance of a rent expense account?
Correct answer A. Debit balance
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What are revenue and expense accounts known as?
Correct answer D. Nominal accounts
Real accounts cover assets, liabilities and which other item?
Correct answer A. Capital
Under which class of account does a building account fall?
Correct answer D. Real
Which records help a business classify its transactions according to their nature?
Correct answer A. Ledger accounts
Which of the following is an example of a real account?
Correct answer C. Office equipment
Which accounts are closed at the end of an accounting period?
Correct answer C. Nominal accounts
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What is the closing balance of a ledger account called?
Correct answer C. Balance c/d
What does the term posting mean in accounting?
Correct answer A. Entering in the ledger the information contained in the journal
In which book are the individual accounts opened?
Correct answer B. Ledger