Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

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What is the primary function of a journal in accounting?

To announce financial results
To list all transactions in the order they occur
To summarize account transactions
To tally annual revenue

The correct answer is: To list all transactions in the order they occur

The primary function of a journal in accounting is to list all transactions in the order they occur. This chronological recording of transactions is essential because it helps accountants and business owners track and analyze financial activities accurately. Each entry in the journal includes details such as the date, description of the transaction, accounts affected, and amounts, which facilitates the organization and review of financial records. By maintaining a journal, businesses can ensure transparency in their financial reporting and provide a clear trail of all financial events. This systematic recording supports the double-entry bookkeeping system, where every transaction affects at least two accounts, ultimately leading to accurate financial statements. The journal serves as the foundational first step in the accounting cycle before transactions are later posted to the general ledger, ensuring that the financial data remains precise and well-organized.