Century 21 Accounting - Ch 11

True

True or False: A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.

True

True or False: Accounts Payable is a single general ledger account that summarizes the total amount owed to all vendors.

True

True or False: Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account named in the Account Title column.

True

True or False: An error in posting may cause income to be understated or overstated on the income statement

False

True or False: At the end of the week, the cash payment journal's Accounts Payable Credit column total is posted to the controlling account.

True

True or False: Daily general ledger account balances are necessary for a business

True

True or False: Each entry in the Accounts Payable columns of a cash payments journal affects the vendor named in the Account title column.

False

True or False: The account form for a vendor has a Debit Balance column because accounts payable is a liability and liabilities have normal debit balances.

False

True or False: The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system.

True

True or False: The balance of the controlling account Account Payable equals the total of all vendor account balances in the accounts payable subidiary ledger.

False

True or False: When the balance of a vendor account in an accounts payable ledger is changed, the balance if the controlling account is unaffected.

True

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

True

True or False: a general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.

True

True or False: an account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.

True

True or False: the number of transactions determines how often to post to a general ledger

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

a controlling account

the total of the schedule of account balances, and total amount due all vendors is a

a schedule of accounts payable

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.

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

in not posted

Journal entries are sorted and summarized by transferring information to

ledger accounts

The Accounts Receivable is posted to the accounts payable ledger,

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

A listing of vendor accounts, account balances, and total amount due all vendors is a

schedule of accounts payable

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 posted in the Credit column