Acct Ch 4 - Fall 19

A group of accounts is called a ledger (T/F)

TRUE

Account numbers may be assigned by 10s so that new accounts can be added easily (T/F)

TRUE

All corrections for posting errors should be made in a way that leaves no question as to the correct amount (T/F)

TRUE

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit (T/F)

TRUE

The Cash account is the first asset account and is numbered 110 (T/F)

TRUE

The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure (T/F)

TRUE

The procedure of arranging accounts in a general ledger, assigning account numbers and keeping records current is known as file maintenance (T/F)

TRUE

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515 (T/F)

TRUE

When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers (T/F)

TRUE

The last step in the posting procedure is to write the

account number in the Post. Ref. column of the journal

When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the account personnel are

doing file maintenance

The first digit in the account number 520 means that the account is in the

expense division of the general ledger

If an error requires a correcting entry, the source document describing the correction to be made

is a memorandum

The second step in the posting procedure is to write the

journal page number in the Post. Ref. column of the account

Posting references in a journal are

none of these (not the first item recorded when posting, not placed in an account's Post. Ref. column and not not necessary)

If posting is interrupted, the accounting personnel know to resume posting

on the line with a blank Post. Ref. column in the journal

The procedure for transferring information from a journal entry to a ledger account is

posting

Determining that the amount of cash agrees with the accounting records is

proving cash

An account number in the journal's Post. Ref. column shows

the account to which an amount is posted

Errors discovered after an entry is posted may be corrected by ruling through the item (T/F)

FALSE (a correcting entry must be recorded and posted if the error was discovered after posting)

A journal shows in one place all the changes in a single account (T/F)

FALSE (a journal shows transactions in chronological (date) order)

The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger (T/F)

FALSE (after NOT before)

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 (T/F)

FALSE (the Post. Ref. columns also show where transaction info came from or was posted to)

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 (T/F)

FALSE (the correcting entry would be to Dr. Rent Expense and to Cr. Misc. Expense)

The steps for posting are to write the date, the journal page number, the amount and the balance (T/F)

FALSE (the last step is to put the account number of the account you posted to back in the Post. Ref. column on the journal)

The two steps for opening an account are writing the account title and recording the balance (T/F)

FALSE (write the account title and the account number when opening an account)