Chapter 11
A change in the balance of a vendor account also changes the balance of the controlling account, accounts payable
True
A controlling account balance in a general ledger must equal the sum of all account balances in subsidiary ledger
True
A diagonal line in the Post Ref column allows the posting reference of to account numbers
True
A vendor account is opened by writing the vendor name and vendor number on hte heading of the ledger account
True
Accounts Payable is a general ledger account that summarizes the total account owed to all vendors
True
Accounts are arranged in alphabetical order within the subsidiary ledgers
True
Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account
True
An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account
True
An error in posting may cause income to be understated or overstated on the income statement
True
Each entry in the accounts payable columns of a cash payments journal affects the vendor named in the account title column
True
Each entry in the accounts receivable credit column of the cash receipts journal is posted to the proper customer accounts in the accounts receivable ledger
True
Entries in a journal may affect balances in an accounts payable ledger
True
Posting frequently keeps each vendor account balance up to date
True
The accounts receivable ledger is proved when the balance of Accounts Receivable in the general ledger is the same as the total of the schedule of accounts receivable
True
The amount on each line of a purchases journal is posted as a credit to a vendor account in the accounts payable ledger
True
The form used in the accounts receivable ledger has a debit balance coulmn
True
The monthly total if each special amount column in a cash payments journal is posted to a general ledger account
True
The number of transactions determines ho often to post to a general ledger
True
The total owed to all vendors is summarized in a single general ledger account, Accounts payable
True
Transactions recorded in a general journal can affect both subsidiary ledger and general ledger accounts
True
When using an accounts receivable ledger the total amount due from all customers is summarized in a single general ledger account
True
a general ledger sorts ans summarizes all information affecting income statement and balance sheet accounts
True
Schedule of Accounts Payable
A listing of vendor accounts, account balances, and total amount due from all customers
Accounts Receivable Ledger
A subsidiary ledger containing only accounts for charge customers
Controlling Account
An Account in a general ledger that summarizes all accounts in a subsidiary ledger
A change in the balance of a customer account does not affect the balance of the controlling account, Accounts receivable
False
A schedule of accounts payable is prepared before all entries in a journal are posted
False
At the end of the week, the cash payment journal's Account Payable Credit column total is posts to the controlling account
False
Daily general ledger account balances are necessary for a business
False
Each amount in a sales journal's accounts receivable debit column is posted as a credit to the customer account in the accounts receivable ledger
False
Each amount in the general columns of a cash payments jourbal is posted as a total at the end of the month
False
Errors made in recording amounts in subsidiarity ledgers always affect the general ledger controlling account
False
The account form for a vendor has a debit Balance column because accounts payable is a liability and liabilities have normal debit balances
False
The amount of money a business has to spend on account determines the number of ledgers used in an accounting system
False
The number of entries that may be recorded on each ledger account form is limited to 15
False
The steps for posting a journal entry to correct customer accounts are exactly the same as posting other transactions to subsidiary ledgers
False
When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected
False
Subsidiary Ledger
a ledger that is summarized in a single general ledger account
Schedule of accounts receivable
a listing of customer accounts , account balances and total amount due from all customers
Accounts Payable Ledger
a subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account