Sign In

For the sake of quality, our forum is currently "Restricted" to invitation-only. In case if you wish to join our forum, please send an email seeking an invitation to "[email protected]".

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Captcha Click on image to update the captcha.

You must login to ask question.

Quiz 8 – Accounting Terms – Beginner (Answers)

Note – Please take our quiz ‘Quiz 8 – Accounting Terms – Beginner’ on this page before going through the below answers. Only the top 3% of our audience score 10/10 in all of them.

  • Name – Quiz 8 – Accounting Terms – Beginner
  • Topic – Accounting Terms
  • Answers with Explanations
Q1. _____ is the process of transferring a journal entry to a ledger.

Ans. Posting is the process of transferring a journal entry to a ledger. Posting means a grouping of all the transactions with respect to a particular account at one place for a meaningful conclusion and to further the accounting process.

 

Q2. _____ is the principal book of accounting.

Ans. Ledger is the principal book of accounting. It is called the principal book of accounting as the transactions which are first entered in journal or subsidiary books are finally incorporated in the ledger.

 

Q3. All operating expenses can be found in _____.

Ans. All operating expenses can be found in income statement. If an expense doesn’t qualify as a cost of goods sold, it goes under the operating expense section of the income statement. They are Selling General, and Administrative (SG&A) expenses.

 

Q4. _____ is money owed to a business from its customers.

Ans. Trade receivables is money owed to a business from its customers. Trade receivable refers to the outstanding invoices a company has or the money clients owe the company.

 

Q5. Journal Entry with more than one credit and/or debit is called _____ entry.

Ans. Journal Entry with more than one credit and/or debit is called compound journal entry. Rather than making separate journal entries for the same transaction, the debits and credits can be combined under one entry.

 

Q6. _____ is goods withdrawn by the owner for personal use.

Ans. Drawings is goods withdrawn by the owner for personal use. In the case of goods withdrawn by owners for personal use, purchases are reduced, and ultimately the owner’s capital is adjusted.

 

Q7. Arrangement of assets and liabilities in a proper order in balance sheet is called _____.

Ans. Arrangement of assets and liabilities in a proper order in balance sheet is called marshalling. The assets, liabilities, and capital on a balance sheet must be properly marshaled and shown in a logical order.

 

Q8. _____is document issued by seller to request payment from buyer.

Ans. Invoice is document issued by seller to request payment from buyer. It is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller.

 

Q9. _____ records all credit sales made by a business.

Ans. Sales book records all credit sales made by a business. It is one of the subsidiary books of accounts and unlike cash sales which are recorded in the cash book, the sales book is only to record credit sales.

 

Q10. _____ is a subsidiary book where all cash/bank receipts/payments are recorded.

Ans. Cash book is a subsidiary book where all cash/bank receipts/payments are recorded. It is a financial journal that contains all cash receipts and disbursements, including bank deposits and withdrawals.