Accounting Chapter 4

A group of accounts is a?

ledger

f a debit is posted to an asset account, the amount of the debit will be _to the previous account balance to determine the new account balance.

added

The cash account for TechKnow Consulting is the first _ account and is numbered 110

asset

Because the account form has columns for the debit and credit balance of an account, it is often referred to as the _ account form.

balanced rule

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

expense division of the general ledger

A ledger that contains all accounts needed to prepare financial statements is called a general journal.

false

Accounts are arranged in chronological order within divisions of the chart of accounts

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

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

file maintance

An account number in the journal's Post. Ref. column shows

he account to which an amount is posted

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 ledger account.

There are three steps to take in order to correct an incorrect amount posted in an account.

line should be drawn through the incorrect amountThis answer is correct Selected:The correct amount should be written in above the incorrect amountThis answer is correct Selected:The account balance should be recalculated

If posting is interrupted, the account personnel know to resume posting

on the line with a blank Post. Ref. column in the journal.

The first digit of account numbers for accounts in the _ ledger division is 3.

owner's equity

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

posting

Determining that the amount of cash agrees with the accounting records is

proving cash

If a debit is posted to a liability account, the amount of the debit will be _ from the previous account balance to determine the new account balance.

subtracted

A correcting entry is an additional journal entry made to correct in incorrect journal entry.

true

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

An account number is the number assigned to an account.

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 correcting account.

true

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current is called file maintainance.

true

The reason for the Post.Ref columns of the journal and general ledger is to indicate which general ledger account has been posted to and which page of the general journal the transaction has been posted to.

true

When an account is opened account title and number are required to be written on the heading of an account.

true

When errors are discovered they must be corrected with a correcting entry.

true

You must determine if the balance of the cash account agrees with the balance of the check book register and is called proving cash.

true

The asset division accounts for TechKnow Consulting are numbered in the _s.

100's

If an error requires a correcting entry, a _ is prepared as the source document describing the correction to be made.

memorandum

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the number _.

515

There are five steps in posting an amount from the debit column of a general journal

Post the date in the date column Write the journal page number in the Post Ref. column of the account general ledger Write the debit amount in the debit column Write the new account balance in the Balance debit column Return to the General Journal and write the account # in the Post Ref. column

The last step in the posting procedure is to write the

account number in the Post. Ref. column of the journal

The two steps for opening an account are writing the _ and the _.

account title account number