Chapter 12 Accounting

The total of all customer account balances in the accounts receivable ledger equals A. the balance in the accounts receivable controlling account B. the balance in the accounts payable controlling account C. the cash account D. none of these

A

When a credit is posted o the accounts payable ledger, the A. previous balance is added to the new amount posted in the Credit column B. source document number and page number of the journal are written in the Post. Ref. column of the account C. credit amount is written in the Debit column of the account D. word Balance is written in the Item column

A

When a debit is posted to the accounts payable ledger, the A. debit amount is written in the Debit column of the account B. cash account increases C. controlling account is increased by the entry D. all of the above

A

When opening a new page in an accounts receivable ledger, A. Balance is written in the Item column B. the Item column is left blank C. a number is written in the Post. Ref. column D. none of these

A

The accounts receivable ledger contains an account for A. a vendor B. a customer who will pay later C. a cash customer D. none of these

B

The separate amounts in the Accounts Receivable Debit column of a journal are A. posted individually to the general ledger B. posted to the general ledger only as a part of the column total C. not posted to the general ledger D. none of these

B

A check mark is placed in parentheses below the General Debit and General Credit column totals in the journal to indicate that the two column totals are A. posted individually B. posted only as part of the column total C. not posted D. none of these

C

Each account in a general ledger has A. two amount columns B. three amount columns C. four amount columns D. none of these

C

Totals of the Accounts Payable special amount columns are posted to the general ledger A. daily B. weekly C. at the end of the month D. none of these

C

Posting the special amount column totals is done A. weekly B. daily C. after each transaction D. none of these

D

A schedule of accounts payable is prepared before all entries in a journal are posted.

F

An error in posting to a ledger account usually will not affect the trial balance.

F

Frequency of posting to the general ledger is determined by how many accounts are in the chart of accounts.

F

It is usually necessary to have up-to-date balances in the general ledger at all times.

F

Posting does not have to be done at the end of the month.

F

A change in the balance of a customer account also changes the balance of the controlling account Accounts Receivable.

T

A change in the balance of a vendor account also changes the balance of the controlling account Accounts Payable.

T

Accounts are arranged in alphabetical order within the subsidiary ledgers.

T

Amounts recorded in general amount columns are posted individually to the general ledger account named in the Account Title column.

T

At the end of the month, the journal's Accounts Payable Debit column total is posted to the controlling account Accounts Payable.

T

Each amount in a journal's Accounts Receivable columns is posted individually to an account in the accounts receivable ledger.

T

Each cash receipt on account from a customer is posted as a credit to an account in the account in the accounts receivable ledger.

T

Only totals of special amount columns are posted to the general ledger.

T

The account from for a vendor has a Credit Balance column because accounts payable are liabilities and liabilities have normal credit balances.

T

When using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account.

T