Accounting ch 4 review

is a memorandum

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

true

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

posting

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

true

a group of accounts is called a ledger

false

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

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...

proving cash

determining that the amount of cash agrees with the accounting records is...

false

errors discovered after an entry is posted may be corrected by ruling through an item

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

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

false

if the payment of cast 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

none of these

posting references in a journal are...

true

the account number is placed in the Post. Ref. column of the journal as the last step of the posting procedure

true

the cash account is the FIRST asset account and is numbered 110

Expense division of the general ledger

the first digit 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 only use for post. ref. column of a journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted

false

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

true

the procedure of arranging accounts in a general ledger, assigning account numbers and keeping records current is known as file maintenance

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

the second step in the posting procedure is to write the...

false

the steps for posting are to write the date, the journal pg #, the amount, and the balance

false

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

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

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

true

when posting is complete, the Post. Ref. column in the general journal is completely filled in with account numbers