Chapter 16 Accounting True/False Review

False

A cash sale of merchandise is recorded in the sales journal.

True

A check mark in the Posting Reference column of the sales journal indicates that the transaction has been posted to the accounts receivable subsidiary ledger.

True

A check mark under the double rule in the General Credit column of the cash receipts journal indicates the column total is not posted anywhere.

True

All special journals have special amount columns in which debits and credits to frequently used accounts are entered.

True

An account number in parentheses under a column total in a special journal indicates that the total has been posted to the general ledger account whose number is shown.

True

Footings are always completed in pencil, and column totals are written in ink.

False

On a schedule of accounts receivable, only those accounts with balances are listed.

True

Proving the equality of debits and credits in the cash receipts journal does not prove the complete accuracy of the recorded transactions.

True

The General Credit column in the cash receipts journal is used for recording credits to accounts for which there are no special amount columns.

False

The use of special amount columns eliminates the need to post individual amounts to general ledger accounts.

True

To prove the accounts receivable subsidiary ledger, the total of the schedule of accounts receivable is compared with the balance of the Accounts Receivable controlling account in the general ledger.

False

When a special journal page is filled and there are additional transactions to record, write the phrase "Brought Forward" on the last line of the filled journal page.

False

When cash sales and bankcard sales transactions are recorded in the cash receipts journal, a check mark is placed in the Posting Reference column to indicate the amounts are not to be posted individually.

True

When posting from the sales journal to the accounts receivable subsidiary ledger, write the letter "S" plus the page number on which the transaction was recorded in the Posting Reference column of the subsidiary ledger account.