Journal

### What is a journal in accounting? - [ ] A book to record final accounts. - [x] A book for initially recording financial transactions. - [ ] A detailed list of a company’s assets. - [ ] A report created only at the end of the fiscal year. > **Explanation:** A journal is a primary book where financial transactions are initially recorded in chronological order before being posted to the ledger. ### Which journal records repetitive transactions of the same type? - [x] Specialized journals - [ ] General journal - [ ] Ledger book - [ ] Inventory journal > **Explanation:** Specialized journals such as the sales or purchases journal are used to record repetitive transactions of the same nature. ### What is typically included in a journal entry? - [ ] Only the date and the amount - [ ] Only the account names and narration - [x] The date, accounts affected, debit and credit amounts, and a brief description - [ ] A list of transactions for the month > **Explanation:** A journal entry typically includes the date, accounts affected, amounts debited and credited, and a brief narration. ### In which journal would a sale of goods be initially recorded? - [ ] Cash book - [ ] Purchase journal - [x] Sales day book - [ ] General journal > **Explanation:** Sales of goods are initially recorded in the Sales Day Book before being posted to the ledger. ### Why is chronological recording in a journal important? - [ ] It ensures all accounts are balanced. - [ ] It amortizes expenses. - [x] It maintains an accurate sequence of transactions. - [ ] It calculates tax liabilities. > **Explanation:** Chronological recording ensures that all transactions are noted in the exact order they occur, maintaining the accuracy and sequence of financial activities. ### Which of the following is a typical use of a general journal? - [ ] Daily cash transactions - [ ] Repetitive purchases - [ ] Only asset-related entries - [x] Recording non-repetitive transactions and adjustments > **Explanation:** The general journal is used to record non-repetitive transactions, corrections, and adjustments that don’t fall under the specialized journals. ### How do computerized accounting systems differ in journal recording compared to manual systems? - [ ] They require no entries. - [ ] Entries are randomized. - [x] They automate and streamline the recording process. - [ ] They require additional manual entries. > **Explanation:** Digital accounting systems automate and streamline the journal entry process, minimizing manual effort and reducing errors. ### In a journal entry, what comes first, the debit or the credit? - [x] Debit - [ ] Credit - [ ] Both together - [ ] Neither > **Explanation:** In a journal entry, the debit entry is listed first, followed by the credit entry. ### What narration might accompany a journal entry for purchasing office supplies? - [ ] "Investment income recorded" - [ ] "Cash received from sales" - [x] "Purchased office supplies for cash" - [ ] "Equipment sold" > **Explanation:** Descriptions like "Purchased office supplies for cash" accompany journal entries to clarify the nature of the transaction. ### Why is it necessary to post journal entries to the general ledger? - [ ] To avoid tax liabilities - [ ] To delay audits - [x] To compile and organize all accounts in one place for accurate financial reporting - [ ] To set transaction dates > **Explanation:** Posting journal entries to the general ledger compiles and organizes all accounts, which facilitates accurate financial reporting and prepares the trial balance.