Accounting chapter 11
size, number of transactions, and type of transaction
A business's ____, _____, and ____ determine the number of ledgers used in an accounting system.
true
A change in the balance of a vendor account also changes the balance of the controlling account Accounts Payable.
true
A controlling account balance in a general ledger must equal the sum of all account balances in subsidiary ledger.
true
A diagonal line in the Post. Ref. column allows the posting reference of two account numbers.
A
A form in the accounts receivable ledger has A. a Debit Balance column B. a Credit Balance column C. both Debit Balance and Credit Balance columns D. none of these
Subsidiary Ledger
A ledger that is summarized in a single general ledger account
Accounts Receivable Ledger
A subsidiary ledger containing only accounts for charge customers
Accounts Payable Ledger
A subsidiary ledger containing only accounts for vendors from whom items are purchased or brought on account
true
Amounts in general amount columns of a CR Journal are posted individually to the general ledger account named in Account Title column.
Controlling Account
An account in a general ledger that summarizes all accounts in a subsidiary ledger
false
Daily general ledger account balances are necessary for business.
true
Entries in a general journal may affect account balances in an accounts payable ledger.
false
Errors made in recording amounts in subsidiary ledgers always affect the general ledger controlling account.
General Ledger
Has controlling accounts that summarizes all accounts in a subsidiary ledger.
B
When a credit is posted to the accounts payable ledger, the A. source document number and page number of the journal are written in the Post. Ref. column of the account B. previous balance is added to the new amount posted in the Credit column C. credit amount is written in the Debit column of the account D. word "Balance" is written in the Item column
A
When a debit is posted to the accounts payable ledger, the A. debit amount is written in the Debit column of the account B. cash account increases C. controlling account is increased by the entry D. all of the above
B
When all lines have been used in a ledger account form, a new page is prepared with the account name, account number, and A. page number B. account balance C. company name D. none of these
true
When using an account receivable ledger, the total amount due from all customers is summarizes in a single general ledger account.
vendor account; controlling account
When the balance of a ______ in an AP ledger is changed, the balance of the ____ in the general ledger is affected.
true
Accounts are arranged in alphabetical order within the subsidiary ledgers.
true
Journal entries are sorted and summarized by transferring information to ledger accounts.
name; number
Open vendor accounts by writing ____ and ____.
true
Posting frequently keeps each vendor account balance up to date.
General Ledger
Sorts and summarizes all information affecting Income Statement and Balance Sheet accounts
at the end of the month
Special amount column totals are posted ______.
Accounts Payable Ledger
Summarizes the total amount owed to all vendors.
true
The amount on each line of a purchases journal is posted as a credit to a vendor account in the accounts payable ledger.
true
The balance of the controlling account AP equals the total of all vendor account balances in the AP subsidiary ledger.
true
The form used in the accounts receivable ledger has a Debit Balance column.
A
The journal that should be posted first is the A. sales journal B. purchases journal C. general journal D. cash payments journal
true
The monthly total of each special amount column in a cash payments journal is posted to a general ledger account.
false
The number of entries that may be recorded on each ledger account form is limited to fifteen.
true
The number of transactions determines how often to post.
B
The separate amounts in the Accounts Receivable Debit column of a sales journal are A. posted individually to the general ledger B. posted individually to the accounts receivable ledger C. not posted to the general ledger D. none of these
false
The steps for posting a journal entry to correct customer accounts are exactly the same as posting other transactions to subsidiary ledgers.
C
The total amount of the purchases journal is posted to the general ledger A. daily B. weekly C. at the end of the month D. none of these
true
The total amount owed to all vendors is summarized in a single general ledger account, Accounts Payable.
A
The total of all customer account balances in the accounts receivable ledger equals A. the balance in the accounts receivable controlling account B. the balance in the accounts payable controlling account C. the cash account D. none of these
general ledger
The total of the schedule of AR should equal the AR account balance in the ______.
Accounts Receivable Ledger
Total due from all customers is summarized in a single general ledger account.
true
Transactions recorded in a general journal can affect both subsidiary ledger and general ledger accounts.
false
A change in the balance of a customer account does not affect the balance of the controlling account Accounts Receivable.
C
A check mark is placed in parentheses below the General Debit and General Credit column totals in the journal to indicate that the two column totals are A. posted individually B. posted only as part of the column total C. not posted D. none of these
Schedule of Accounts Receivable
A listing of customer accounts, account balances, and total amount due from all customers
Schedule of Accounts Payable
A listing of vendor accounts, account balances, and total amounts due all vendors
false
A schedule of accounts payable is prepared before all entries in a journal are posted.
false
Each amount in the General columns of the cash payments journal is posted as a total at the end of the month.
false
Each amount in the sales journal's Accounts Receivable Debit column is posted as a credit to the customer account in the accounts receivable ledger.
true
Each entry in the AP columns of the CP journal affects the vendor named in the Account Title column.
true
Each entry in the Accounts Receivable Credit column of the cash receipts journal is posted to the proper customer account in the accounts receivable ledger.
D
Errors in posting may cause A. income to be understated or overestimated on the income statement B. a business to pay too much to a vendor C. cash on hand to be less than the balance in the cash account D. all of the above
true
The accounts receivable ledger is proved when the balance of Accounts Receivable in the general ledger is the same as the total of the schedule of accounts receivable.