The primary function of the general ledger is to

Question 9 of 10
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The primary function of the general ledger is to store transactions by account classification and
to provide a balance of each account.
A. True
B. False
Answer Key: True
Question 10 of 10
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Horizontal analysis shows the percentage that each item in a financial statement is of some
significant total such as total assets or sales.

Question 1 of 10
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Expense accounts usually have debit balances and show the cost associated with producing revenue
during an accounting period.
Question 2 of 10
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All of the accounts of a specific business enterprise are referred to as a ledger.
Question 3 of 10
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A debit to the Dividends account would indicate an increase in expenses.

A. True
B. False
Answer Key: False
Question 4 of 10
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Assets are recorded at cost for accounting purposes because cost is subjective and market value is
objective.
Question 5 of 10
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The Office Equipment account normally has a credit balance.
Question 6 of 10
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A company purchased equipment for $1,000; the journal entry to record this purchase is:

Question 7 of 10
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A purchase of land or equipment for cash would cause total assets to increase by the cost of the land or
equipment.
A. True
B. False
Answer Key: False
Question 8 of 10
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If $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business:
Question 9 of 10
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A journal aids in the division of labor by allowing one person to journalize entries while another
individual may post these entries.