Rudyard Accounting Chapter 4

True

T/F - A group of accounts is called a ledger.

False - posting the account number to the journal is the last step.

T/F - A journal page number is written in the Post Ref. column of an account to show that posing of the entry is completed.

False, a ledger does

T/F - A journal shows in one place all the changes in a single account.

True

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

Proving Cash

Determining that the amount of cash agrees with the accounting records is called what?

The account to which an amount is posted

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

False - Post Ref. posting is the very last thing you do.

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

False - it is file maintenance

T/F - The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting.

False - Don't forget the last step of writing the account number in the journal's Post Ref. column.

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

False - Title and account number

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

True

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

True

T/F - When all posting is completed, the journal's Post Ref. column is completely filled.

entry date in the Date column of the account

The first step in the posting procedure is writing the _______________________________.

ledger account number in the journal's Post. Ref. column

The last step in the posting procedure is writing the ________________________________.

Posting

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

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

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

In the journal's Post Ref. column

Posting references in a journal are always put where?

True

T/F - If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.

True

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

True

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

False - It is number 110

T/F - The cash account is the first asset account and is number 100.

False - It also acts as a reference of where information was posted to or posted from.

T/F - The only reason for the Post Ref. columns of the journal and general ledger is to indicated which entries in the journal still need to be posted if posting is interrupted.

Asset

The first digit in the account number 120 means that the account is in which division of the general ledger?

File Maintenance

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

Credit

When the previous balance of an account is zero and a credit amount is posted to the account, the new balance is a debit or credit?