Accounting Study Guide 5
Encore Music arranges expense accounts in chronological order in its General Ledger.
False
Separate amounts in general amount columns are not posted individually.
False
Separate amounts in special amount columns are posted individually.
False
The cash account is the first account and is numbered 100
False
The last two digits in a 3-digit account number indicate the General Ledger division of the account.
False
The only reason for the Post. Ref. 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
The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.
False
The second division of Encore Music's chart of accounts is the Owner's Equity Division
False
The steps for posting are to write the date, journal page number, amount, and balance.
False
The totals of special amount columns in a journal are not posted.
False
The two steps for opening an account are writing the account title and recording the balance.
False
Account Number
The number assigned to an account.
File Maintenance
The procedure for arranging 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 parentheses 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
Separate amounts in a Sales Credit column are not posted individually.
True
The asset division accounts for Encore Music are numbered in the 100s
True
The first digit of account numbers for accounts in the Owner's Equity Ledger division is 3
True
The totals of general amount columns in a journal are not posted.
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.
True
With the exception of the totals lines, the Post. Ref. 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 accounts.
Correcting Entry
A journal entry made to correct an error in a ledger.
General Ledger
A ledger that contains all accounts needed to prepare financial statements.