Accounting Chapter 11

When opening a new page in an accounts receivable ledger, ________.

Balance is written in the Item column

An account in a general ledger that summarizes all accounts in a subsidiary ledger is _____.

a controlling account

Subsidiary ledger

a ledger that is summarized in a single general ledger account

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 amount due all vendors

Accounts receivable ledger

a subsidiary ledger containing only containing only accounts for charge customers

Accounts payable ledger

a subsidiary ledger containing only containing only accounts for vendors from whom merchandise or other items from whom merchandise or other items are purchased on account

A schedule of accounts payable is prepared ___________.

after all journal entries are posted.

An error in posting may cause _____.

all of these (a business to pay too much vendor, income to be overstated or understated on the income statement, cash on hand to be less than the balance in the cash account)

An error in posting may cause __________.

all of these (income to be overstated or understated on the income statement, cash on hand to be less than the balance in the cash account, a business to pay too much to a vendor)

Controlling account

an account in a general ledger that summarizes all accounts in a subsidiary ledger

The accounts receivable ledger contains only accounts of __________.

charge customers

A change in the balance of a customer account does not affect the balance of the controlling account, Accounts Receivable.

false

A schedule of accounts payable is prepared before all entries in a journal are posted.

false

Each amount in a sales journal's Accounts Receivable Debit column is posted as a credit to the customer account in the accounts receivable ledger.

false

Each amount in the General columns of a cash payments journal is posted to a general ledger account.

false

Errors made in recording amounts in subsidiary ledgers always affect the general ledger controlling account.

false

The number of entries that may be recorded on each ledger account form is limited to fifteen.

false

The steps for posting a journal entry to correct accounts are exactly the same as posting other transactions to subsidiary ledgers.

false

A general ledger sorts and summarizes all information affecting __________.

income statements and balance sheet accounts

A check mark in parentheses below the General Debit column of a journal indicates that the total ______.

is not posted

Journal entries are sorted and summarized by transferring information to _______.

ledger accounts

A check mark is placed in the parentheses below the General Debit and General Credit column totals in the cash payments journal to indicate that the two column totals are _____

not posted

The Accounts Receivable Debit column total of the sales journal is ________.

posted to the general ledger controlling account at the end of each month

The separate amount in the Accounts Receivable Debit column of a sale journal are _______.

posted to the general ledger only as a part of the column total

A listing of vendor accounts, account balance, and total amount due all vendors is a _________.

schedule of accounts payable

The total of the schedule of accounts receivable should equal _________.

the accounts receivable account balance in the general ledger

When a debit is posted to the accounts payable ledger, _________________.

the debit amount is written in the Debit column of the account

When a credit is posted to the accounts payable ledger, ________.

the previous balance is added to the new amount is posted in the Credit column

When a credit is posted to the accounts payable ledger, ____________________.

the previous balance is added to the new amount posted in the Credit column

A charge 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 a subsidiary ledger.

true

A diagonal line in the Post. Ref. column allows the posting reference of two account numbers.

true

Accounts are arranged in alphabetical order within the subsidiary ledgers.

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.

true

Entries in a general journal may affect account balances in an accounts payable ledger.

true

Posting frequently keeps each vendor account balances up to date.

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.

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 form used in the accounts receivable ledger has a Debit Balance column.

true

The monthly total of each special amount column in a cash payments journal is posted to a general ledger account.

true

The total amount owed to all vendors is summarized in a single general ledger account, Accounts Payable.

true

Transitions record in a general journal can affect both subsidiary ledger and general ledger accounts.

true

When using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account.

true

Daily general ledger account balance are _________.

usually not necessary