State BPA Fundamental Accounting Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the State BPA Fundamental Accounting Exam with interactive flashcards and multiple choice questions. Each question comes with hints and explanations. Ace your exam with confidence!

Practice this question and more.

What does the reference G5 in the general ledger indicate?

The transaction was made on the fifth day of the month
It corresponds to the fifth general transaction
It is a reference for the fifth entry
There is no specific meaning

The correct answer is: It corresponds to the fifth general transaction

The reference G5 in the general ledger indicates that it corresponds to the fifth general transaction. In accounting, general ledger references are structured to help track and categorize transactions systematically. The 'G' signifies that it is a general transaction, while the '5' specifically denotes its order or sequence in the list of transactions recorded. Using such referencing helps accountants and financial professionals quickly locate specific entries and understand their context within the overall financial records. It is essential for maintaining organization and accuracy in accounting practices, especially when dealing with numerous transactions. Each entry is coded in a way that reflects its nature and position within the ledger, which aids in the efficiency of financial analysis and reporting.