chapter 4 accounting 1

The cash account is the first asset account and is numbered 100

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

False

a journal page number is written in the post. ref. column of an account to show that posting of the entry is completed

False

a journal shows in one place all the changes in a single account

False

the posting reference should always be recorded in the journals post. ref. column before amounts are recorded in the ledger

False

the two steps for opening an account are writing the account title and recording the balance

False

account number

The number assigned to an account

file maintenance

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

Account numbers may be assigned by 10s so that new accounts can be added easily.

True

If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.

True

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.

True

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515

True

a group of account is called a ledger

True

the account number is placed in the post. ref. column of the journal as the last step in the posting procedure

True

the procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting

True

correcting entry

a journal entry made to correct an error in the ledger

the first digit in the account number 120 means that the account is in the

asset division of the general ledger

general ledger

contains all accounts needed to prepare financial statements

when the previous balance of an account is zero and a credit amount is posted to the account, the new balance is a

credit

proving cash

determining that the amount of cash agrees with the accounting records

when accounts are arranged in a general ledger, account number is assigned, and the chart of accounts is kept up to date, the accounting personnel are

doing file maintenance

the first step in the posting procedure it writing the

entry date in the date column of the account

the last step in the posting procedure is writing the

journal page number in the post. ref. column of the account

posting references in a journal are

none of the above

an account number in the journals post. ref. column shows

none of these

if posting is interrupted, the accounting personnel known to resume posting

on the line with a blank post. ref. column in the journal

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

posting

transferring information from a journal entry to a ledger account

The steps for posting are to write the date, journal page number, amount, and balance

true

When all posting is completed, the journal's Post. Ref. column is completely filled

true

opening an account

writing an account title and number on the heading of an account

ledger

A group of accounts