accounting chapter 11: pre test/objective test

A schedule of accounts receivable is prepared ____.

after all current entries are posted

A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account is ____.

an Accounts Payable ledger

When opening a new page in an accounts receivable ledger, ____.

balance is written in the Item column

An account in a general ledger that summarizes all accounts in a subsidiary ledger is ____.

controlling account

The amount on each line of a purchases journal is posted as a ____.

credit to an account in the Accounts Payable ledger

A general ledger sorts and summarizes all information affecting ____.

income statement and balance sheet accounts

The special amount column totals of the cash receipts journal are ____.

posted to the general ledger controlling account at the end of each month

A vendor number is written in the Post. Ref. column of the journal as the last posting step to ____.

show that posting of this line to the Accounts Payable ledger is complete

When posting the Accounts Receivable Credit column total of the cash receipts journal, return to the journal and write ____.

the account number under the column total in parenthesis

When a debit is posted to the accounts payable ledger, ____.

the debit amount is written in the Debit column of the account

When a credit is posted to the accounts receivable ledger, ____.

the new account posted in the Credit column is subtracted from the previous balance

Each account in a subsidiary ledger has ____.

three amount columns

An account in a general ledger that summarizes all accounts in a subsidiary ledger is __

Controlling account

A schedule of accounts payable is prepared before all journal entries have been posted.

False

Procedures for opening customer accounts are completely different from those used for opening vendor accounts.

False

The last journal to be posted should be the general journal.

False

The total amount of the purchases journal is posted to the purchases and accounts receivable accounts.

False

A listing of customer accounts, account balances, and total amount due from all customers is a ____.

Schedule of Accounts Receivable

A ledger that is summarized in a single general ledger account is a ____

Subsidiary ledger

The total of the schedule of accounts receivable should equal ____.

The accounts receivable account balance in the general ledger

A listing of customer accounts, account balances, and total amount due from all customers is a schedule of accounts receivable.

True

A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.

True

Balances of general ledger accounts are usually needed only when financial statements are prepared.

True

Each amount in the general columns of a cash payments journal is posted to a general ledger account.

True

Entries in a sales journal affect account balances in both the accounts receivable ledger and the general ledger.

True

The amounts on each line of a purchases journal are posted to vendor accounts in the accounts payable ledger.

True

The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger.

True

The sales journal should be posted before the remaining journals are posted.

True

To indicate that column totals are not to be posted, ____.

a check mark is placed in parenthesis under the total

To open a new customer account, ____.

All of the above

The totals of the general columns of the cash payments journal are posted

None of the above

Each entry in the purchases journal is ____.

Posted often

Each entry in the purchases journal is an amount that ____.

Posted often

A business's size, number of transactions, and type of transactions determine the number of ledgers used in an accounting system.

True

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.

True