76) Describe the difference in information contained in the general journal vs. the general ledger.

 

3.2   Learning Objective 3-2

 

1) The purpose of posting is to:

A) list the transactions in chronological order in the journal.

B) provide an explanation of the transaction.

C) update the account balances in the ledger.

D) correct a previous entry.

 

2) Posting is performed by transferring information from the journal to the:

A) ledger.

B) trial balance.

C) balance sheet.

D) income statement.

 

3) The posting reference column in the ledger is:

A) used to record the journal and page number the transactions originated.

B) used to record the ledger number.

C) used to record the date.

D) not used.

 

4) A credit to a liability account was posted to an owner’s equity account. This would cause:

A) assets to be overstated.

B) liabilities to be understated.

C) owner’s equity to be understated.

D) net income to be overstated.

5) A credit to an asset account was posted to a revenue account. This would cause:

A) assets to be understated.

B) liabilities to be understated.

C) capital to be understated.

D) revenue to be overstated

 

6) A credit to an asset account was posted to an expense account. This would cause:

A) assets to be overstated.

B) liabilities to be understated.

C) capital to be understated.

D) expenses to be overstated.

 

 

 



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