Accounting Chapter 4 T/F

True

A group of accounts is called a ledger

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

True

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

The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure

False

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

The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger

False

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting

False

The steps for posting are to write the date, journal page number, amount, and balance

False

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

True

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

True

When all posting is completed, the journal's Post. Ref. column is completely filled