Accounting - Chapter 4 Study Guide
doing file maintenance
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...
True
All corrections for posting errors should be made in a way that leaves no question as to the correct amount
the account to which an amount is posted
An account number in the journal's Post Ref. column shows...
Correcting Entry
An additional journal entry made to correct an incorrect journal entry
False
Errors discovered after an entry is posted may be corrected by ruling through the item
False
Errors discovered before entries are posted must be corrected with a correcting entry
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 correct account
True
If an error requires a correcting entry, a memorandum is prepared as the source document describing the correction to be made
is a memorandum
If an error requires a correcting entry, the source document describing the correction to be made...
True
Only the column totals for special amount columns in a journal are posted
none of these
Posting references in a journal are...
False
Separate amounts in a journal's special amount columns are posted individually
False
Separate amounts in general amount columns are not posted individually
True
Separate amounts in general amount columns are posted individually
True
Separate amounts in special amount columns are not posted individually
True
The Cash account is the first asset account and is numbered 110
True
The account number is placed in the Post Ref. column of the journal as the last step in the posting procedure
True
The third division of Delgado Web Services chart of accounts is the owner's equity division
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
Opening an Account
Writing an account title and number on the heading of an account
True
A check mark in parentheses below a General Debit column total indicates that the total is not posted
True
A check mark in the Post Ref. column of the journal indicates that the amounts on that line are not posted individually
Ledger
A group of accounts
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
False
The posting reference should always be recorded in the journal's Post Ref. column before amounts are recorded in the ledger
File Maintenance
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
posting
The procedure for transferring information from a journal entry to a ledger account is...
journal page number in the Post Ref. column of the account
The second step in the posting procedure is to write the...
False
The last two digits in a 3-digit account number indicate the general ledger division of the account
Account Number
The number assigned to an 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
neither amount is posted individually
If both amounts on a journal line are recorded in special amount columns,...
General Ledger
A ledger that contains all accounts needed to prepare financial statements
False
Delgado Web Services arranges expense accounts in chronological order in it general ledger
on the line with a blank Post Ref. column in the journal
If posting is interrupted, the accounting personnel know to resume posting...
True
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
True
If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit
False
The asset division accounts for Delgado Web Services are numbered in the 200s
True
The cash for Delgado Web Services is the first asset account and is numbered 110
False
The column total of the General Credit column is posted
False
The first digit of account numbers for accounts in the owner's equity ledger division is 4
expense division of the general ledger
The first digits in the account number 520 means that the account is in the...
account number in the Post Ref. column of the journal
The last step in the posting procedure is to write the...
False
The steps for posting are to write the date, the journal page number, the amount, and the balance
True
The totals of general amount columns in a journal are not posted
False
The two steps for opening an account are writing the account title and recording the balance
Posting
Transferring information from a journal entry to a ledger account
True
With the exception of the totals lines, the Post Ref. column is completely filled in with either an account number or a check mark
