accounting chapter 4
T or F: A journal shows, in one place, all the changes in a single account.
False
T or F: Separate amounts in a journal's special amount columns are posted individually.
False
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 performing what task?
File maintenance
If an error requires a correcting entry, the source document describing the correction to be made is a
Memorandum
If posting is interrupted, how do the accounting personnel know where to resume posting?
On the line with a blank Post. Ref. column in the journal.
An account number in the journal's Post. Ref. column shows what?
The account to which an amount is posted.
What is the last step in the posting procedure?
To write the account number in the Post. Ref. column of the journal.
T or F: A check mark in the Post. Ref. column of the journal indicates that the amounts on that line are not posted individually.
True
T or F: A group of accounts is called a ledger.
True
T or F: Account numbers may be assigned by 10s so that new accounts can be added easily.
True
T or F: Only the column totals for special amount columns in a journal are posted.
True
The second step in the posting procedure is to
Write the journal page number in the Post. Ref. column of the account.
Two additional questions to know: 1) What is the definition for posting? 2) If both amounts on a journal line are recorded in special amount columns, how does posting occur?
1) The procedure for transferring information from a journal entry to a ledger account. 2) The special amount columns totals are posted (neither amount is posted individually).
The first digit in the account number 560 means that the account is in what division of the general ledger?
Expense division
T or F: Errors discovered after an entry is posted may be corrected by ruling through the item.
False
T or F: The column total of the General Credit column is posted.
False
T or F: 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
T or F: The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.
False
T or F: The steps for posting are to write the date, the journal page number, the amount, and the balance.
False
T or F: If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.
True
T or 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 or F: The Cash account is the first asset account and is numbered 110.
True
T or F: The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.
True
T or F: The procedure of arranging avcounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance.
True
T or F: When adding a new expense account between accounts numbered 540 and 550, the new account is assigned the account number 545.
True
Posting references in a journal are: a) always placed in an account's Post. Ref. column, b) not necessary, c) the first item recorded when posting, or d) none of these.
d) none of these