Accounting Chapter 4 Test

The cash account is the first asset account and is numbered 100

False, 110

TechKnow consulting arranges expense accounts in chronological order in its general ledger

False, alphabetical

The last two digits in a three digit account number indicate the general ledger division of the account

False, indicate the location of each account within the general ledger division

The only reason for the post reference columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted

False, it is only one of the reaskns

The second division of TechKnow Consulting's chart of accounts is the owners equity division

False, liabilities

Separate amounts in special amount columns are posted individually

False, not

The totals of special amount columns in a journal are not posted

False, they are

Separate amounts in general amount columns are not posted individually

False, they are posted individually

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

False, writing an account title and number in the heading

Account number

The number assigned to an account

File maintenance

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

Posting

Transferring information from a journal entry to a ledger account

A check mark in parenthesis below a general debit column total indicates that the total is not posted

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

The asset division accounts for tech KNOW consulting are numbered in the 100s

True

The first digit of account numbers for accounts in the owners equity ledger division is 3

True

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the number 515

True

With the exception of the totals lines, the post reference column is completely filled in with either an account number or a check mark

True

Opening an account

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

Ledger

A group of sccounts

Correcting entry

A journal entry made to correct an error in a previous journal entry

General ledger

A ledger that contains all accounts needed to prepare financial statements