Accounting Chapter 11 True/False

A change in the balance of a customer account does not affect the balance of the controlling account, Accounts Receivable.

False

A schedule of accounts payable is prepared before all entries in a journal are posted.

False

Each amount in a sales journal's Accounts Receivable Debit column is posted as a credit to the customer account in the accounts receivable ledger.

False

Each amount in the General columns of a cash payments journal is posted as a total at the end of the month.

False

Errors made in recording amounts in subsidiary ledgers always affect the general ledger controlling account.

False

The number of entries that may be recorded on each ledger account form is limited to fifteen.

False

The steps for posting a journal entry to correct customer accounts are exactly the same as posting other transactions to subsidiary ledgers.

False

A change in the balance of a vendor account also changes the balance of the controlling account, Accounts payable.

True

A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger.

True

A diagonal line in the Post Ref. column allows the posting reference of two account numbers.

True

Accounts are arranged in alphabetical order within subsidiary ledgers.

True

Each entry in the Accounts Receivable Credit column of the cash receipts journal is posted to the proper customer account in the account receivable ledger.

True

Entries in a general journal may affect account balances in an accounts payable ledger.

True

Posting frequently keeps each vendor account balance up to date.

True

The accounts receivable ledger is proved when the balance of Accounts Receivable in the general ledger is the same as the total of the schedule of accounts receivable.

True

The amount of each line of purchases journal is posted as a credit to a vendor account in the accounts payable ledger.

True

The form used in the accounts receivable ledger has a Debit Balance column.

True

The monthly total of each special amount column in a cash payments journal is posted to a general ledger account.

True

The total amount owed to all vendors is summarized in a single general ledger account, accounts Payable.

True

Transactions recorded in a general journal can affect both subsidiary ledger and general ledger accounts.

True

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

True