Accounting Chapter 4 True/False

Errors discovered after an entry is posted may be corrected by ruling through the item.

False

If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.

False

The only use for the Post. Ref. column of a journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted.

False

The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.

False

The steps for posting are to write the date, the journal page number, the amount, and the balance.

False

The two steps for opening an account are writing the account title and recording the balance.

False

A group of accounts is called a ledger.

True

All corrections for posting errors should be made in a way that leaves no question as to the correct amount.

True

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.

True

The Cash account is the first asset account and is numbered 110.

True

The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

True

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance.

True

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.

True

When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers.

True

A journal shows in one place all the changes in a single account.

False