Accounting - Chapter 12 Test

Entries in a cash receipts journal affect balances in the accounts payable ledger and the general ledger.

False

The heading of the balance column of an account in the Accounts Payable ledger is titled Debit Balance.

False

When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected.

False

The separate amounts in the Accounts Receivable Debit column of a sales journal are posted to the _________ _________ only as part of the column __________.

General Ledger, Total

A general ledger sorts and summarized all information affecting ____________________ and ____________________ accounts.

Income Statement and Balance Sheet

A check mark in parentheses below the General Debit column of the cash payments journal indicates that the total ________________________.

Is not posted

Journal entries are sorted and summarized by transferring information to _________________accounts.

Ledger

Amounts recorded in general amount columns are posted individually to the general ledger account named in the Account Title column.

True

An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.

True

At the end of the month, the purchases journal's Accounts Payable Credit column total is posted to the controlling account.

True

Each amount in a cash payments journal's or cash receipts journal's Accounts Receivable column is posted individually to an account in the Accounts Receivable ledger.

True

Each entry in the Accounts Payable columns of a cash payments journal affects the vendor names in the Account Title column.

True

The account from for a vendor has a Credit Balance column because accounts payable are liabilities and liabilities have normal credit balances.

True

The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger.

True

The number of transactions determines how often to post to a general ledger.

True

When using an Accounts Receivable ledger, the total amount due from all customers is summarized in a single general ledger account.

True

Daily general ledger account balances are ________________________

Usually not necessary

A business with transactions involving mostly the receipt and payment of cash generally does not use any ledgers.

False

The total of the schedule of accounts receivable should equal the _________ _________ balance in the ___________ ledger.

Accounts Receivable, General

A schedule of Accounts Payable is prepared __________all journal entries are posted.

After

When opening a new page in an accounts receivable ledger, __________________ is written in the Item column.

Balance

The Accounts Receivable ledger contains only accounts of __________.

Charge Customers

An account in a general ledger that summarizes all accounts in a subsidiary ledger is a _______________ account.

Controlling

The Accounts Receivable credit column total of the cash receipts journal is posted to the general ledger _______________ ______________________ at the end of the month.

Controlling Account

When a credit is posted to the accounts payable ledger, the previous balance is added to the new amount posted in the ______ column.

Credit

When a debit is posted to the accounts payable ledger, the debit amount is written in the ______________column of the account.

Debit

A listing of vendor accounts, account balances, and total amount due all vendors is a ________________________.

Schedule of Accounts Payable

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.

True

A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.

True

Accounts Payable is a single general ledger account that summarizes the total amount owed to all vendors.

True