Accounting I Chapter 7
Errors discovered after posting has taken place require a(n)
Correcting Entry
A credit posting to the Office Equipment account will result in an increase to that account.
False
An error discovered before posting is usually corrected with a journal entry.
False
Every posting requires the year, month, and day to be entered in the Date column of the ledger account for every transaction.
False
If a transaction is journalized on the 8th and is posted on the 10th, the date entered in the Date column of the ledger account is the 10th.
False
Opening an account in a computerized accounting system is entirely different from opening an account in a manual system.
False
The ledger account form used by Zip Delivery Service is a three-column account form.
False
To locate a trial balance error, the first step is to check the postings from the journal to the individual ledger accounts.
False
Whether accounts are kept manually in a special file or electronically on magnetic disks or tapes, the ledger is often called a(n)
General Ledger
The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n)
Ledger
The accounting stationery used to record financial information about specific accounts is a(n)
Ledger Account Form
Transferring data from the journal to the ledger is called
Posting
Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called
Proving the Ledger
If you were to write $190 as either $19 or $1,900, this mistake would be called a(n)
Slide
If you meant to write $27 but wrote $72, this mistake is called a(n)
Transposition Error
A periodic report prepared by a business to test the equality of total debits and total credits in the ledger is called a(n)
Trial Balance
A trial balance is prepared after posting is completed.
True
Every amount posted will either increase or decrease the balance of a ledger account.
True
Every journal entry requires a posting to at least two ledger accounts.
True
How often posting occurs depends on the size of the business, the number of transactions, and whether posting is done manually or electronically.
True
In the preparation of a trial balance, all accounts are listed in the order in which they appear on the chart of accounts, including those accounts with a zero balance.
True
Opening an account in a ledger involves writing the account title and the account number on the account form.
True
The easiest way to post is from left to right in a ledger account because there is less chance of omitting data.
True
The notation "G3" in the Posting Reference column of a ledger account indicates the data was posted from general journal page 3.
True
The purpose of posting is to show the changes that take place in the business's accounts as a result of financial transactions.
True
When posting a correcting entry, the phrase "correcting entry" is usually written in the Explanation column of the ledger account.
True