How well do you know Journal Entries?

5 True or False questions on Journal Entries. How many can you get right?

1. A Journal Entry is a record of a Financial Transaction.
2. Every Journal Entry contains exactly one Debit and one Credit.
3. In a Journal Entry, Total Debits must equal Total Credits.
4. Journal Entries are posted directly into Financial Statements.
5. A Compound Journal Entry involves more than two accounts.

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[MrHumbleOne]

5/5 !!! And I only just started my course lol, it would be so much more helpful with a small statement as to why it’s true or false for added clarity

[shubhtripathi]

Hi mate love your content. Mostly all the content you post is the basic syllabus of our ending high school years. Cheers

[AccountingStuff]

How did you go?

ANSWERS ⬇️

1. TRUE - A Journal Entry is a record of a Financial Transaction.
2. FALSE - A Journal Entry can contain more than one Debit and one Credit. It all depends on the complexity of the transaction. The sole requirement is that Total Debits equal Total Credits.
3. TRUE - In Double-Entry Accounting, every transaction must be balanced. This means Total Debits must equal Total Credits across all Journal Entries.
4. FALSE - False. Journal Entries are posted to the General Ledger. This is a central database that contains a complete record of Accounts and Journal Entries. Data from the General Ledger is periodically summarized and used to create Financial Statements.
5. TRUE - A Compound Journal Entry affects more than two accounts.

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For more practice questions like this head to: accountingstuff.com

[oglostx]

5/5 I only know all these answers because I’m so sick of doing journals lol

[alinskyjesusballecer]

Got it all right! 🎉 Cheers to these type of contents 🥳

[jimmason]

I'm teaching accounting ATM so I had better get 5/5 and I did. Whew.

[blubanister]

5/5 prin of financial acc & managerial acc paid off 😂