Identifying Accounting Terms, Concepts and Practice
200
Liabilities
Accounting Number
The number assigned to an account
File Maintenance
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
300
Owner's Equity
500
Expense
Ledger
A group of accounts
General Ledger
A ledger that contains all accounts needed to prepare financial statements
Correcting Entry
An additional journal entry made to correct an incorrect journal entry
100
Asset
Proving Cash
Determining that the amount of cash agrees with the balance of the cash account in the accounting records
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 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 title are writing the account title and recording the balance
False
The asset division accounts for Delgado Web Services are numbered in the 200s
False The 100s
400
Revenue
Posting
Transferring information from a journal entry to a ledger account
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 posting 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
What are the five steps in posting an amount from the credit column of a general journal?
Write the date, Write the journal number, Write the credit amount, Write the new account balance and Return to the journal and write the account number
What are the five steps in posting an amount from the debit column of a general journal?
Write the date, Write the journal number, Write the debit amount, Write the new account balance and Return to the journal and write the account number
Opening An Account
Writing an account title and number on the heading of an account