Chapter 4 - Test A: Part 1: Analyzing Accounting Concepts and Procedure

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

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

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

True

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

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

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 group of accounts is called a ledger

False

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

True

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