ACNT 1303 - Chapter 4 - Practice Test

A ledger account contains a complete record of the individual transaction activity in each account.

TRUE

Account names are written in the general journal exactly as they appear in the chart of accounts.

TRUE

Asset accounts are the first accounts displayed within the general ledger.

TRUE

If a journal entry that contains an error has already been posted, a correcting entry should be journalized and posted.

TRUE

Posting references are part of the audit trail.

TRUE

Posting references provide a useful cross-reference when entries must be traced and verified.

TRUE

The balance ledger form displays the date, description, post reference, debit, and credit for each entry.

TRUE

Transactions are entered in the journal in chronological order.

TRUE

The process of transferring data from a journal to a ledger is known as ____________________. a. posting b. journalizing c. accumulating d. correcting

A

A _______________ is referred to as a record of original entry. a. general journal b. transaction c. general ledger d. T account

A - general journal

When posting, the ____________________ is recorded in the Posting Reference column of the journal. a. ledger account number b. description of the entry c. general journal page d. date of the transaction

A - ledger account number

A description should accompany each entry made in the ____________________. a. general ledger b. general journal c. trial balance d. chart of accounts

B - general journal

The process of recording transactions in a journal is referred to as ____________________. a. posting b. journalizing c. accumulating d. correcting

B - journalizing

What would a posting reference of J3 within the general ledger indicate? a. that the associated journal entry is on page J of the third journal b. that the associated journal entry is on page 3 of the general journal c. that the associated journal entry is the third entry within the general journal d. that the associated journal entry contains three accounts

B - that the associated journal entry is on page 3 of the general journal

A journal entry containing more than one debit or more than one credit is called a(n) ____________________ entry. a. expanded b. imbalanced c. compound d. correcting

C - compound

When a transaction is entered in the general journal, the account to be _________________ is always recorded first in the Description column. a. credited b. increased c. debited d. decreased

C - debited

A permanent, classified record of all accounts used in a firm's operation is called a(n) ___________________. a. general journal b. transaction c. general ledger d. T account

C - general ledger

The ______________is referred to as the record of final entry. a. general journal b. transaction c. general ledger d. T account

C - general ledger

The ____________________ is recorded in the Posting Reference column of the ledger account. a. ledger page number b. account credited c. account debited d. journal page number

D - journal page number

A journal entry can consist of no more than one account to be debited and one account to be credited.

FALSE A compound journal entry is defined as an entry that contains more than one debit or credit

A ledger is sometimes referred to as a record of original entry.

FALSE A ledger is sometimes referred to as a record of final entry, while a journal is sometimes referred to as a record of original entry

Posting is the process of transferring data from the ledger to the journal.

FALSE Posting is the process of transferring data from the journal to the ledger, not the other way around.

The error that occurs when the number $5.00 is written as $50.00 is called a(n) ____________________ error.

FALSE The first step in the accounting cycle is to analyze business transaction while the second step is to prepare a record of business transactions.

Transactions are recorded in either a journal or a ledger, but not in both.

FALSE Transactions are recorded in a journal, and are then posted to a ledger

When a transaction is entered in a general journal, the first account title is indented about half an inch from the left margin of the Description column.

FALSE When a transaction is entered in a general journal the first account title is being debited. The credited items, which are listed below the debited items, are indented.

If an error is discovered before the entry is posted, the incorrect amount can be erased and the correct amount recorded.

FALSE If an error is discovered before the entry is posted, neatly cross out the incorrect item and write the correct data above it. Do not simply erase the error.