Journal Entry Practice Quiz
Journal Entry Practice Questions
Here are 5 True or False questions on Journal Entries. How many can you get right?
A Journal Entry is a record of a Financial Transaction.
a) True
b) False
Every Journal Entry contains exactly one Debit and one Credit.
a) True
b) False
In a Journal Entry, Total Debits must equal Total Credits.
a) True
b) False
Journal Entries are posted directly into Financial Statements.
a) True
b) False
A Compound Journal Entry involves more than two accounts.
a) True
b) False
Scroll down to see the answers.
Journal Entry Practice Question Video
You can also take the test in this video:
Journal Entry Practice Answers
Here are the answers:
a) True. A Journal Entry is a record of a Financial Transaction.
b) 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.
a) True. In Double-Entry Accounting, every transaction must be balanced. This means Total Debits must equal Total Credits across all Journal Entries.
b) 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.
a) True. A Compound Journal Entry affects more than two accounts.
How did you go? Share your score in the comments.
Journal Entry Question Pack
I've put together a question pack covering Journal Entries. It contains 20 practice questions and answers. You can download it here if you want to test yourself.
Journal Entry Cheat Sheet
My Journal Entry Cheat Sheet is available for download here. It’ll give you a summary of all the key information that you need to know.
