chapter 4 accounting 1
The cash account is the first asset account and is numbered 100
False
The only reason for the Post. Ref. 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
a journal page number is written in the post. ref. column of an account to show that posting of the entry is completed
False
a journal shows in one place all the changes in a single account
False
the posting reference should always be recorded in the journals post. ref. column before amounts are recorded in the ledger
False
the two steps for opening an account are writing the account title and recording the balance
False
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
Account numbers may be assigned by 10s so that new accounts can be added easily.
True
If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.
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
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
True
a group of account is called a ledger
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 posting
True
correcting entry
a journal entry made to correct an error in the ledger
the first digit in the account number 120 means that the account is in the
asset division of the general ledger
general ledger
contains all accounts needed to prepare financial statements
when the previous balance of an account is zero and a credit amount is posted to the account, the new balance is a
credit
proving cash
determining that the amount of cash agrees with the accounting records
when accounts are arranged in a general ledger, account number is assigned, and the chart of accounts is kept up to date, the accounting personnel are
doing file maintenance
the first step in the posting procedure it writing the
entry date in the date column of the account
the last step in the posting procedure is writing the
journal page number in the post. ref. column of the account
posting references in a journal are
none of the above
an account number in the journals post. ref. column shows
none of these
if posting is interrupted, the accounting personnel known to resume posting
on the line with a blank post. ref. column in the journal
the procedure for transferring information from a journal entry to a ledger account is
posting
determining that the amount of cash agrees with the accounting records is
proving cash
posting
transferring information from a journal entry to a ledger account
The steps for posting are to write the date, journal page number, amount, and balance
true
When all posting is completed, the journal's Post. Ref. column is completely filled
true
opening an account
writing an account title and number on the heading of an account
ledger
A group of accounts
