Bookkeeping & General Ledger Flashcards
7 cards from real ABA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bookkeeping & General Ledger flashcards as text
Which posting reference column entry in the general ledger indicates the source of the posted amount?
Answer: The page number of the journal from which the entry was posted
The posting reference (PR) column in the general ledger records the journal page number to create an audit trail back to the original journal entry.
Under the allowance method, writing off an uncollectible account:
Answer: Has no effect on net income or net accounts receivable
Under the allowance method, the write-off entry (debit Allowance, credit A/R) does not affect net income or net A/R because the expense was already estimated earlier.
Which of the following correctly describes the normal balance of a contra-revenue account?
Answer: Debit balance, opposite of revenue accounts
Contra-revenue accounts like Sales Returns & Allowances and Sales Discounts have debit normal balances, offsetting the credit balance of the revenue account.
In a manual accounting system, the LAST step before preparing financial statements is:
Answer: Preparing an adjusted trial balance
The adjusted trial balance is prepared after adjusting entries are posted, confirming all balances are correct before financial statements are drafted.
Accrued salaries at period-end are recorded with which journal entry?
Answer: Debit Salaries Expense, Credit Salaries Payable
Salaries earned but not yet paid are recorded by debiting Salaries Expense (increasing the expense) and crediting Salaries Payable (recording the liability).
The chart of accounts is best described as:
Answer: A numbered listing of all accounts used by a business
The chart of accounts is a numbered index of every account a business uses, providing a consistent coding system for classifying transactions.
When supplies purchased for $800 are recorded as an asset and $300 remain unused at period-end, the adjusting entry records:
Answer: Debit Supplies Expense $500, Credit Supplies $500
Supplies used = $800 − $300 = $500; the adjusting entry debits Supplies Expense $500 and credits Supplies $500 to reflect the consumption.