Accounting Chapter 4 Test
The cash account is the first asset account and is numbered 100
False, 110
TechKnow consulting arranges expense accounts in chronological order in its general ledger
False, alphabetical
The last two digits in a three digit account number indicate the general ledger division of the account
False, indicate the location of each account within the general ledger division
The only reason for the post reference columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted
False, it is only one of the reaskns
The second division of TechKnow Consulting's chart of accounts is the owners equity division
False, liabilities
Separate amounts in special amount columns are posted individually
False, not
The totals of special amount columns in a journal are not posted
False, they are
Separate amounts in general amount columns are not posted individually
False, they are posted individually
The two steps for opening an account are writing the account title and recording the balance
False, writing an account title and number in the heading
Account number
The number assigned to an account
File maintenance
The procedure for stranding accounts in a general ledger, assigning account numbers and keeping records current
Posting
Transferring information from a journal entry to a ledger account
A check mark in parenthesis below a general debit column total indicates that the total is not posted
True
Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form
True
The asset division accounts for tech KNOW consulting are numbered in the 100s
True
The first digit of account numbers for accounts in the owners equity ledger division is 3
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the number 515
True
With the exception of the totals lines, the post reference column is completely filled in with either an account number or a check mark
True
Opening an account
Writing an account title and number on the heading of an account
Ledger
A group of sccounts
Correcting entry
A journal entry made to correct an error in a previous journal entry
General ledger
A ledger that contains all accounts needed to prepare financial statements