Question Details

Which of the following statements is true about a journal entry 



1.	Which of the following statements is true about a journal entry ?
a.	Decreases in liabilities are indented.
b.	The Post. Ref. column is left blank until entries are posted.
c.	A line is skipped between each debit and each credit.
d.	Assets are entered before liabilities.


	2.	Which of the following statements is not necessarily true about a journal entry?
a.	Liabilities are indented.
b.	An explanation follows the journal entry.
c.	The Post. Ref. column is left blank until the entry is posted. 
d.	All debits must be recorded before any credits.



	3.	The process of transferring journal entry information from the journal to the ledger is called
a.	journalizing.
b.	posting.
c.	footing.
d.	analyzing.



	4.	The Post. Ref. column in the general journal is used to show that an amount has been posted to the ledger when which of the following is placed in it?
a.	An X
b.	Journal number
c.	Journal page number
d.	Account number



	5.	The principal purpose of posting is to
a.	enter transactions directly into the ledger.
b.	help identify errors made in the journal.
c.	obtain updated account balances.
d.	help determine if the financial statements are ready to be prepared.



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