accounting chapter 4
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 file maintenance
The first asset account is numbered 100.
false
a journal entry made to correct an error in the ledger is called an adjusting entry
false
on a chart of accounts, all assets and expense accounts are in the same division
false
the 2 steps for opening an account are writing the account title and recording the balance
false
A ledger is a group of accounts.
true
Account numbers may be assigned by 10s so that new accounts can be added easily.
true
Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form
true
Cash can be proved at any time
true
If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.
true
If the cash balance in the checkbook equals the cash balance in the Cash account, cash is proved.
true
Posting is transferring information from a journal entry to a ledger account.
true
Posting sorts journal entries so that all debits and credits affecting each account are brought together in one place
true
The first step to post an amount from the Credit column is to write the date in the Date column of the account
true
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
true
When making a correcting entry, the same four steps are followed as when making any journal entry
true
a chart of accounts is a list of account titles and numbers showing the location of each account in a ledger
true
a general ledger account is opened for each account listed on a chart of accounts
true
a ledger that contains all accounts needed to prepare financial statements is a general ledger
true
each amount in the debit and credit columns of a general journal is posted to the account written in the account title column
true
when as error in a journal entry has already been posted, the incorrect journal entry should be corrected with an additional journal entry
true
An account number in the journal's Post. Ref. column shows
the account to which an amount is posted
the first step in the posting procedure Is writing
the entry date in the date column of the account
A new account to be added between accounts 530 and 540 will be assigned the number
535
A business has the following expense accounts: 510, Advertising Expense; 520, Miscellaneous Expense; 530, Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ____.
540
The first digit in the account number 120 means that the account is in the ____ division of the general ledger.
asset
posting references in a journal are
none of the above
the last step in the posting procedure is writing
none of the above
If posting is interrupted, the accounting personnel know to resume posting
on the line with blank post. ref. column n the journal
the procedures for transferring info from a journal entry to a ledger account is
posting