accounting chapter 4

When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are

doing file maintenance

The first asset account is numbered 100.

false

a journal entry made to correct an error in the ledger is called an adjusting entry

false

on a chart of accounts, all assets and expense accounts are in the same division

false

the 2 steps for opening an account are writing the account title and recording the balance

false

A ledger is a group of accounts.

true

Account numbers may be assigned by 10s so that new accounts can be added easily.

true

Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form

true

Cash can be proved at any time

true

If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.

true

If the cash balance in the checkbook equals the cash balance in the Cash account, cash is proved.

true

Posting is transferring information from a journal entry to a ledger account.

true

Posting sorts journal entries so that all debits and credits affecting each account are brought together in one place

true

The first step to post an amount from the Credit column is to write the date in the Date column of the account

true

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515

true

When making a correcting entry, the same four steps are followed as when making any journal entry

true

a chart of accounts is a list of account titles and numbers showing the location of each account in a ledger

true

a general ledger account is opened for each account listed on a chart of accounts

true

a ledger that contains all accounts needed to prepare financial statements is a general ledger

true

each amount in the debit and credit columns of a general journal is posted to the account written in the account title column

true

when as error in a journal entry has already been posted, the incorrect journal entry should be corrected with an additional journal entry

true

An account number in the journal's Post. Ref. column shows

the account to which an amount is posted

the first step in the posting procedure Is writing

the entry date in the date column of the account

A new account to be added between accounts 530 and 540 will be assigned the number

535

A business has the following expense accounts: 510, Advertising Expense; 520, Miscellaneous Expense; 530, Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ____.

540

The first digit in the account number 120 means that the account is in the ____ division of the general ledger.

asset

posting references in a journal are

none of the above

the last step in the posting procedure is writing

none of the above

If posting is interrupted, the accounting personnel know to resume posting

on the line with blank post. ref. column n the journal

the procedures for transferring info from a journal entry to a ledger account is

posting