Accounting Test 4B-True/False
true
A check mark in the Post. Ref. column of the journal indicates that the amounts on that line are not posted individually.
true
A group of accounts is called a ledger.
false
A journal shows, in one place, all the changes in a single account.
true
Account numbers may be assigned by 10s so that new accounts can be added easily.
true
All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
false
If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry would include a credit to Cash.
true
Only the column totals for special amount columns in a journal are posted.
false
Separate amounts in general amount columns are not posted individually.
true
The Cash account is the first asset account and is numbered 110.
true
The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.
false
The only use for the 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.
false
The steps for posting are to write the date, the journal page number, the amount, and the balance.
true
The totals of general amount columns in a journal are not posted.
true
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.
false
Errors discovered after an entry is posted may be corrected by ruling through the item.
true
If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.
true
If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.
false
The two steps for opening an account are writing the account title and recording the balance.
