Accounting Ch. 11

A schedule of accounts receivable is prepared ____.

after all current entries are posted

A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account is ____.

an Accounts Payable ledger

When opening a new page in an accounts receivable ledger, ____.

balance is written in the Item column

The amount on each line of a purchases journal is posted as a ____.

credit to an account in the Accounts Payable ledger

The ledger that contains all accounts needed to prepare financial statements is the ____.

general ledger

A general ledger sorts and summarizes all information affecting ____.

income statement and balance sheet accounts

Each entry in the purchases journal is an amount that ____.

is to be paid to a vendor

The totals of the General columns of the cash payments journal are posted to ____.

none of the above

Each entry in the purchases journal is ____.

posted often

The special amount column totals of the cash receipts journal are ____.

posted to the general ledger controlling account at the end of each month

A vendor number is written in the Post. Ref. column of the journal as the last posting step to ____.

show that posting of this line to the Accounts Payable ledger is complete

The total of the schedule of accounts receivable should equal ____.

the Accounts Receivable account balance in the general ledger

When posting the Accounts Receivable Credit column total of the cash receipts journal, return to the journal and write ____.

the account number under the column total in parenthesis

When a customer account balance is changed, ____.

the balance of the controlling account Accounts Receivable is also charged

When a debit is posted to the accounts payable ledger, ____.

the debit amount is written in the Debit column of the account

When a credit is posted to the accounts receivable ledger, ____.

the new account posted in the Credit column is subtracted from the previous balance

Each account in a subsidiary ledger has ____.

three amount columns

Daily general ledger account balances are ____.

usually not necessary

A schedule of accounts payable is prepared before all journal entries have been posted.

False

Procedures for opening customer accounts are completely different from those used for opening vendor accounts.

False

The heading of the balance column of an account in the accounts payable ledger is titled Debit Balance.

False

The last journal to be posted should be the general journal.

False

The total amount of the purchases journal is posted to the purchases and accounts receivable accounts.

False

The total of all customer account balances in the accounts receivable ledger equals the balance of the general ledger controlling account Accounts Payable.

False

When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected.

False

A listing of customer accounts, account balances, and total amount due from all customers is a ____.

Schedule of Accounts Receivable

A ledger that is summarized in a single general ledger account is a ____.

Subsidiary ledger

A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.

True

An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.

True

Balances of general ledger accounts are usually needed only when financial statements are prepared.

True

Each amount in the General columns of a cash receipts journal is posted to a general ledger account.

True

Each amount in the general columns of a cash payments journal is posted to a general ledger account.

True

Each entry in the Accounts Receivable Credit column of the cash receipts journal affects the customer named in the Account Title column.

True

Entries in a sales journal affect account balances in both the accounts receivable ledger and the general ledger.

True

The account form for a vendor has a Credit Balance column because accounts payable are liabilities and liabilities have normal credit balances.

True

The amounts on each line of a purchases journal are posted to vendor accounts in the accounts payable ledger.

True

The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger.

True

The sales journal should be posted before the remaining journals are posted.

True

To indicate that column totals are not to be posted, ____.

a check mark is placed in parenthesis under the total

An account in a general ledger that summarizes all accounts in a subsidiary ledger is ____.

a controlling account

Information to be recorded in the accounts payable ledger is ____.

All of the above

To open a new customer account, ____.

All of the above

A listing of customer accounts, account balances, and total amount due from all customers is a schedule of accounts receivable.

True

The total amount of the purchases journal is posted to the general ledger account(s) ____.

Purchases and Accounts Payable

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.

True