accounting ch 4

the last step in the posting procedure is to write the

account number in the post ref column of the account

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 digit in the account number 520 means that the account is in the

expense division of the general ledger

if an error requires a correcting entry, the source document describing the correction to be made

is a memorandum

the second step in the posting procedure is to write the

journal page number in the post ref column of the journal

an account number in the journal's post ref column shows

the account to which an amount is posted

the account number is placed in the post ref. column of the journal as the last step in the posting procedure

F

the cash account is the first asset account and is numbered 110

T

the procedure for transferring information from a journal entry to a ledger account is

posting

a journal shows in one place all the changes in a single account

F

error discovered after an entry is posted may be corrected by ruling through the item

F

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

F

the only use for the post ref column of a journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted

F

the posting reference should always be recorded in the journal's post ref column before amounts are recorded in the ledger

F

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

F

all corrections for posting errors should be made in a way that leaves no question as to the correct amount

T

if the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit

T

the procedure of arranging in a general ledger, assigning account numbers, and keeping record current is know as file maintenance

T

the steps for posting are to write the date, the journal page number, the amount and the balance

T

when posting is complete, the post ref column in the general journal is completely filled in with account numbers

T

posting references in a journal are

always placed in an accounts post ref column