Accounting Chapter 11 Test (T/F)

Daily general ledger account balances are necessary a for business

False

The heading of the balance column of an account in the accounts payable ledger is titled debit balance

False

When a sale causes the balance of a customer account in an accounts receivable ledger to change, the balance of the controlling account, Accounts Receivable, remains the same

False

Amounts recorded in general amount columns of a cash payments journal are posted individually to the general ledger account named in the Account Title Column.

True

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

True

At the end of the month, the Accounts Payable Credit column total of a purchases journal is posted to the controlling account.

True

Each amount in a cash receipts journal's Accounts Receivable columns is posted individually to an account in the accounts receivable ledger.

True

The account form of a vendor has a Credit Valance column because accounts payable is a liability, and the liabilities have normal credit balances.

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 number of entries that may be recorded on each account form depends on the number of lines provided.

True

When using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account.

True

A business with transactions involving mostly the receipt and payment of cash generally does not use any ledgers.

False

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

True

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

True

Accounts Payable is a single general ledger account that summarizes the total amount to all vendors

True