Accounting Chapter 4- True and False
Delgado Web Services arranges expense accounts in chronological order in its general ledger
False
Errors discovered before entries are posted must be corrected with a correcting entry.
False
If a credit is posted to a liability account, the amount of the credit will be subtracted from the previous account balance to determine the new account balance.
False
If a debit is posted to an asset account, the amount of the debit will be subtracted from the previous account balance to determine the new account balance.
False
If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.
False
The asset division accounts for Delgado Web Services are numbered in the 200s
False
The first digit of account numbers for accounts in the owner's equity ledger division is 4
False
The last two digits in a 3-digit account number indicate the general ledger division of the account
False
The only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted.
False
The two steps for opening an account are writing the account title and recording the balance.
False
After a journal has been posted, the Post. Ref. column is completely filled in with account numbers.
True
All corrections for posting errors should be made in a way that leaves no question as to the correct amount
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
Each amount in the Debit and Credit columns of a general journal is posted to the account written in the Account Title column.
True
If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account.
True
If an error requires a correcting entry, a memorandum is prepared as the source document describing the correction to be made.
True
If an incorrect amount is posted in an account, a line should be drawn through the incorrect amount, the correct amount should be written in above the correction, and the account balance should be recalculated
True
The cash account for Delgado Web Services is the first asset account and is numbered 110
True
The third division of the chart of accounts for Delgado Web Services is the owner's equity division
True
There are five steps in posting an amount from the Debit column of a general journal.
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.
True