Accounting - Chapter 4 Study Guide

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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


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