Accounting Chapter 4
False
A list of all the accounts used by a business is called a balance sheet.
False
All transactions must be posted after preparing a trial balance.
False
An account in the chart of accounts is assigned a number at random.
True
Copies of sales tickets or sales invoices issued to customers or clients provide information about sales of goods or services.
False
Entering transactions in a journal is called posting.
True
Source documents provide the input for the accounting process.
True
The flow of data through the accounting information system includes analyzing transactions, journalizing, posting, and preparing a trial balance.
True
The journal provides the information needed to transfer the debits and credits to the accounts in the ledger.
True
The purpose of a journal is to provide a chronological record of all transactions completed by the business.
True
The purpose of a trial balance is to prove that the totals of the debit and credit balances in the ledger accounts are equal.
False
To make the posting process easier, posting reference entries are made at the same time that transactions are entered in the two-column journal.
False
Transactions which do not affect the cash account do not need to be entered in the journal, since they do not affect net income or loss.
False
When entering titles of accounts in the two-column journal, the account to be credited is entered first and the account to be debited is entered second.
False
When the trial balance indicates that the ledger is in balance, you can assume every account reflects the proper and correct balance.
False
You should always enter information about a transaction in the ledger accounts first, before entering the information in the journal.