Chapter 11 Test

the previous balance is added to the new amount posted in the Credit column

When a cedit is posted to the accounts payable ledger

False

When a sale causes the balance of a customer account in an accounts receiveable ledger to change, the balance of the controlling account, Account Receivable is the same.

Balance is written in the item column

When opening a new page in an accounts receivable ledger

True

When using an accounts receivable ledger, the total amount from all customers is summarized in a single general ledger account

income statement and balance sheet accounts

a general ledger sorts and summarizes all informatuon affecting

after all journal entries are posted

a schedule of accounts payable is prepared

charge customers

the accounts receiveable ledger contains only accounts of

not posted

A check mark is placed in parentheses below the general debit and general credit column totals in the cash payments journal to indicate that the two column totals are

True

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts

True

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

True

Accounts Payable is a single general ledger account that is summarizes the total amount owed to all vendors

True

Amounts recorded in general amount columns of a cash payments journal are posted individually to th egeneral ledger account named in the Account Title column.

True

An account in a general ledger that summarizes all accounts in a subisdiary ledger is a controlling account

True

At the end of the month, the Accounts Payable Credit column total of a purchases journal is posted to the controlling account

False

Daily general ledger account balances are necessary for a business.

True

Each amount in a cash receipts journal's Accounts Receivable column is posted individually to an account in the accounts receivable ledger

True

The account form for a vendor has a Credit Balance column because accounts payable is a liability, and liabilities have normal credit balances

True

The balance of the controlling account, Accounts Payable, equals the total of all vendor account balances in the accounts payable subsidiary ledger

False

The business with transactions involving mostly the receipt and payment of cash generally does not use any ledgers

False

The heading of the balance column of an account in the accounts payable ledger is titled Debit balance.

true

The number of entries that may be recorded on each account form depends on the number of lines provided

all of these

an error in posting may cause

usually not necessary

daily general ledger account balances are

posted to the genreal ledger only as a part the column total

the separate amounts in the Accounts Receivable Debit column of a sales journal are