Chapter 4 ACCOUNTANCY : Journal — Online MCQ Test
ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 4 ACCOUNTANCY : Journal with a free chapter-wise online MCQ test.
This chapter covers: This chapter details recording business transactions in the primary journal book determining debit and credit entries narrative explanations and compound entries..
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Chapter 4 ACCOUNTANCY : Journal — Important Questions & Answers
What is the primary book of original entry called in accounting?
- A. Ledger
- B. Journal
- C. Trial Balance
- D. Balance Sheet
Answer: B. Journal
The journal is the book of original entry where transactions are recorded first in chronological order.
The journal is the book of original entry where transactions are recorded first in chronological order.
The process of recording transactions in the journal is known as:
- A. Posting
- B. Balancing
- C. Journalizing
- D. Summarizing
Answer: C. Journalizing
Journalizing is the act of recording business transactions chronologically into the journal.
Journalizing is the act of recording business transactions chronologically into the journal.
Which entry is passed when more than two accounts are involved in a single transaction?
- A. Simple Entry
- B. Compound Entry
- C. Opening Entry
- D. Closing Entry
Answer: B. Compound Entry
A compound entry occurs when two or more debits or credits are involved in one transaction.
A compound entry occurs when two or more debits or credits are involved in one transaction.
Identify the error: 'Paid salary to staff' is journalized as Debit Salaries, Credit Purchases.
- A. It should be Debit Cash
- B. It should be Credit Cash
- C. Salaries should be credited
- D. Purchases should be debited
Answer: B. It should be Credit Cash
Paying salary involves Cash; the correct entry is Debit Salaries, Credit Cash.
Paying salary involves Cash; the correct entry is Debit Salaries, Credit Cash.
What happens to the equation if a business owner introduces additional capital into the business?
- A. Assets increase, Liabilities increase
- B. Assets increase, Capital increases
- C. Assets remain constant, Capital increases
- D. Liabilities increase, Capital decreases
Answer: B. Assets increase, Capital increases
Cash (Asset) comes in and Capital (Equity) increases, keeping the accounting equation balanced.
Cash (Asset) comes in and Capital (Equity) increases, keeping the accounting equation balanced.