General Journal MCQs
Written by True Tamplin, BSc, CEPF®
Updated on April 29, 2022
Take a quick Multiple Choice Questions (MCQs) test about General Journal. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start General Journal MCQs quiz.
If you find difficulty in answering these questions, read ‘General Journal‘ chapter thoroughly from explanation section of the website.
Quiz-summary
0 of 20 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
Information
General journal quiz
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 20 questions answered correctly
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- Answered
- Review
-
Question 1 of 20
1. Question
The process of recording business transactions in chronological order is called:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “Journalizing” (option 3). -
Question 2 of 20
2. Question
Another name for a journal is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “Book of original entry” (option 1). -
Question 3 of 20
3. Question
A journal entry that involves more than two accounts is called:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “compound entry” (option 2). -
Question 4 of 20
4. Question
A written explanation below each journal entry is known as:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “narration” (option 3). -
Question 5 of 20
5. Question
The discount calculated on the list price of the goods is called:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “trade discount” (option 4). -
Question 6 of 20
6. Question
The day book is another name for:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “Journal” (option 4). -
Question 7 of 20
7. Question
The correct journal entry for return of merchandise purchased from Mr. Smith on account is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “John debit; purchases return and allowances credit” (option 3). -
Question 8 of 20
8. Question
The column of the journal used to record the page number of the ledger account is known as:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “Posting reference” (option 2). -
Question 9 of 20
9. Question
Stolen merchandise should be debited to:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “Loss by theft account” (option 3). -
Question 10 of 20
10. Question
Loss of goods by fire should be debited to:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “loss of goods by fire account” (option 3). -
Question 11 of 20
11. Question
The owner of the business takes $100 cash and goods costing $200 for his family. The proper journal entry for this transaction is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “drawings > debit; cash > credit; purchases > credit” (option 1). -
Question 12 of 20
12. Question
Which of the following best describes the trade discount:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “all of the above” (option 4). -
Question 13 of 20
13. Question
The term used for the discount offered by sellers to encourage prompt payments is known as:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “cash discount” (option 4). -
Question 14 of 20
14. Question
The cash discount given is debited because it is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “an expense of the business” (option 2). -
Question 15 of 20
15. Question
The cash discount received is credited because it is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “an income” (option 4). -
Question 16 of 20
16. Question
Mr. Smith invests $10,000 cash in his business. The account to be credited is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “capital” (option 4). -
Question 17 of 20
17. Question
When a customer returns merchandise, the account to be debited is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is ” sales return and allowances” (option 3). -
Question 18 of 20
18. Question
The correct entry for the purchase of merchandise on account is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “purchases > debit; accounts payable > credit” (option 2). -
Question 19 of 20
19. Question
To record a transaction in the general journal correctly, the accountant needs to:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “all of the above” (option 4). -
Question 20 of 20
20. Question
The correct entry for the sale of merchandise on account is:
Correct
Awesome! Your answer is correct.Incorrect
Your answer is incorrect. The correct answer is “accounts receivable > debit; sales > credit” (option 4).
You can also check:
Frequently Asked Questions
What is an Accounting Journal?
An Accounting Journal is a record of financial transactions. It includes information such as the date of the transaction, who was involved, what was bought or sold, and how much money was involved. This information can be used to track the progress of a company’s finances over time.
Can I use a computer to keep my Accounting Journal?
Keeping a journal is important because it allows businesses to track their financial progress over time. This information can be used to decide where to allocate resources and improve the company’s financial standing.
Can I use a computer to keep my Accounting Journal?
Can I use a computer to keep my Accounting Journal?
What is the difference between an Accounting Journal and a General Ledger?
The main difference between an Accounting Journal and a General Ledger is that the journal is a chronological record of all financial transactions, while the ledger summarizes those transactions. In addition, the ledger includes information such as the date of the transaction, the amount of money involved, and the affected account. This information can be used to track a company’s financial progress over time.
Should I keep my Accounting Journal for a long time?
It is generally a good idea to keep your Accounting Journal for at least seven years. This will allow you to track the company’s financial progress over some time. However, you may want to keep it for longer if there are any significant changes in the company’s finances.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.
This is really very helpful. 🙂
Yes this helpful
Glad you found the material helpful. Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!
Aswome loved it
Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!
Yes it is helpful to us
it’s good
Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!
How to prepare Journal entries for partnership?