Ch 4 Posting to a General Ledger

The term used when accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date.

File maintenance

The first digit in the account number 120 means that the account is in the ______ division of the general ledger.

asset

If you are interrupted while posting, you will know where you left off because ________ .

line will have a blank Post. Ref. column in the journal

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

posting

An account number in the journal's Post. Ref. column connects the transaction to ______ .

the account in which an amount is posted

The posting reference is always recorded in the journal as the first step in the posting procedure (T/F).

False--The date (NOT The posting reference)

Accounts in a general ledger are arranged in an order different from how the accounts appear on financial statements (T/F).

False. Accounts are arranged in the same order as how they appear on financial statements

On a chart of accounts, all asset and expense accounts are in the same division. (T/F).

False. Asset and expense accounts are in different divisions

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting (T/F).

False. File maintenance

A journal shows in one place all the changes in a single account (T/F).

False. Ledger is the correct term.

Journal errors discovered before entries are posted are corrected by first preparing a memorandum describing the corrections to be made (T/F).

False. No memorandum is necessary

Whenever the credit amount in an account exceeds the debit amount, the balance is a debit (T/F).

False. The balance is a credit

The second division in the chart of accounts is the owner's equity division (T/F).

False. The second division is the liabilities division

The two steps for opening an account are writing the account title and recording the balance (T/F).

False. The two steps for opening an account are writing the account title and writing the account number. You do not record the balance when opening an account.

A journal entry made to correct an error in the ledger is called an adjusting entry (T/F).

False. This is called a correcting entry

The first asset account is numbered 100 (T/F).

False. the first asset account is Cash which is account number 110

A new account to be added between accounts 530 and 540 will be assigned the number ______ .

535

A business has the follwing expense accounts: 510-Advertising Expense, 520-Miscellaneous Expense, 530-Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ______ .

540

When an error in a journal entry has already been posted, the incorrect journal entry should be corrected with an additional journal entry (T/F).

True

A blank in the Post. Ref. column of the journal indicates that posting for that line still needs to be completed (T/F).

True

A chart of accounts is a list of account titles and numbers showing the location of each account in a ledger (T/F).

True

A general ledger account is opened for each account listed on a chart of accounts (T/F).

True

A ledger is a group of accounts (T/F).

True

A ledger that contains all accounts needed to prepare financial statements is a general ledger (T/F).

True

Account numbers may be assigned by 10s so that new accounts can be added easily (T/F).

True

If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120 (T/F).

True

If a new account is located between accounts numbered 210 and 220, the new account number should be 215 (T/F).

True

If the cash balance in the checkbook equals the cash balance in the cash account, cash is proved (T/F).

True

Posting is transferring information from a journal entry to a ledger account (T/F).

True

Posting to the general ledger sorts journal entries so that all debits and credits affecting each account are brought together in one place (T/F).

True

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515 (T/F).

True