Accounting Chapter 4

the second step in the posting procedure is to write the (A) entry date in the Date column of the account (B) journal page number in the Post ref column of the account (C) account number in the Post Ref column of the journal (D) entry amount in the Debit or credit column of the amount

B

Determining that the amount of cash agrees with the accounting records is (A) posting, (B) journalizing, (C) proving cash, (D) none

C

The last step in the posting procedure is to write the (A) entry date in the Date column of the account (B) journal page number in the post. ref column of the account (C)account number in the post ref column of the journal (D) entry amount in the debit or credit column of the account

C

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 (A) posting (B) journalizing (C) file maintenance (D) none of these

C

If an error requires a correcting entry, the source document describing the correction to be made (A) depends on the type of error made, (B) is a check stub, (C) depends on the type of correcting entry (D) is a memorandum

D

Posting references in a journal are (A) the first time recorded when posting, (B) always placed in an account's Post. Ref. column, (C) the next day, (D) all of these

D

account number

The number assigned to an account

File maintenance

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

what is a correcting error

a journal entry made to correct an error in the ledger

Correcting error

an incorrect journal entry should be corrected with an additional journal entry

cash

asset

Accounts Receivable - ABC tours

assets

supplies

assets

An account number in the journal's Post Ref column shows (A) the date of the entry (B) that work on that journal page is completed (C) the account to which an amount is posted (D)none of these

c

proving cash

determining that the amount of cash agrees with the balance of the cash account in the accounting records

miscellaneous expense

expense

rent expense

expense

advertising expense

expenses

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

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.

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 steps for posting are to write the date, journal page number, the amount, and the balance

false

the posting reference should always be recorded in the journal's post. ref. column before amounts are recorded

false

the two steps for opening an account are writing the account title and recording the balance

false

first number such as 5 in 510

general ledger division

ledger

group of accounts

Accounts Payable-Ad World

liabilities

Accounts Payable-The repair shop

liabilities

Accounts payable - gas for less

liabilities

second two numbers

location within the general ledger

kent erickson, capital

owner's equity

kent erickson, drawing

owner's equity

sales

revenue

which amounts are compared when you're proving cash

the cash balance as shown in the checkbook and the cash balance in the cash account

account title

the name given to an account

Posting

transferring information from a journal entry to a ledger account

A group of accounts is called a ledger

true

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

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. (p. 93)

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 account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

true

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

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

the cash account is the first asset account and is numbered 110

true

when is a correcting error necessary

when a transaction has been improperly journalized and posted to the ledger

when both debit and credit amounts have been posted to an account, what determines whether the balance is a debit or credit

whenever the debit in an account exceeds the credit, the balance is a debit. whenever the credit in an account exceeds the debit, the balance is a credit

opening an account

writing an account title and number on the heading of an account

location of account title

1

what are the three steps for correcting an incorrect amount posted to an correct

1. Draw a line through the incorrect amount. 2. write the correct amount just above the correction in the same space. 3. recalculate the account balance

what are the three steps for correcting an amount posted to an incorrect column

1. Draw a line through the incorrect item in the account 2. record the posting in the correct amount column 3. Recalculate the account balance

Two steps of opening an account

1. write the account title after the world Account in the heading. 2. write the account number after the words Account No. in the heading

2 parts of an account number

1st digit - which general ledger division the account is located 2nd and 3rd digits - indicate the location of the account within that division

location of account number

2

If posting is interrupted, the accounting personnel know to resume posting (A) on the line with a blank post ref column in a journal, (B) at the beginning of the journal page, (C) the next day, (D) all of these

A

The first digit in the account number 520 means that the account is in the (A) expense division of the general ledger (B) revenue division of the general ledger (C) liability division of the general ledger (D) asset division of the general ledger

A

The procedure for transferring information from a journal entry to a ledger account is (A) posting (B) journalizing (C) file maintenance (D) none of these

A

general ledger

A ledger that contains all accounts needed to prepare financial statements

Accounts Receivable - Seagate Travel

Asset