Accounting Chapter 4 Study Guide (Test B) True or False
Errors discovered after an entry is posted may be corrected by ruling through the item.
False
The only use for 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 posting reference should always be recorded in the journal's Post. Ref. column before amounts recorded in the ledger.
False
The steps for posting are to write the date, the journal page number, the amount, and the balance.
False
The two steps for opening an account are writing the account title and recording the balance.
False
A group of accounts is called a ledger
True
Account numbers may be assigned by 10s so that new accounts can be added easily.
True
All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
True
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.
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 Cash account is the first asset account and is numbered 110.
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.
True
the account number is places in the Post. Ref. column of the journal as the last step to the posting procedure.
True
the procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is knows as file maintenance.
True
when posting is complete, the Post. Ref. column of the journal is completely filled in with account numbers.
True
