Accounting Chapter 4 Test
Assets
100
Cash
110
Account Receivable
120,130
Supplies
140
Prepaid Insurance
150
Liabilities
200
Account Payable
210-
Owners Equity
300
Capital
310
Drawing
320
Revenue
400
Sales
410
Expenses
500
The last step in the posting procedure is writing the
Account number in the Post. Ref. column of the journal
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are
Doing file maintenance
The first digit in the account number 520 means that the account is in the
Expense division of the general ledger
A journal shows in one place all the changes in a single account
False
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
False
The only use for the 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 are 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
If an error requires a correcting entry, the source document describing the correction to be made
Is a memorandum
The second step in the posting procedure is to write the
Journal page number in the Post. Ref. column of the journal (G1)
If posting is interrupted, the accounting personnel know 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
Proving cash
Errors discovered after an entry is posted may be corrected by ruling through the item.
T/F
An account number in the journal's Post. Ref. column shows
The account to which an amount is posted
A group of accounts is called a ledger
True
All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
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 account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure
True
The cash account is the first asset account and is numbered 110
True
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance
True
When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
True`
