Accounting True and False
At the end of the week the cash payment journals accounts payable credit column total is posted to the controlling account.
False
Daily general ledger account balances are necessary for a business.
False
The act form for a vendor has a debit balance column because accounts payable is a liability and liabilities have normal debit balances.
False
The amount of money a business spends...
False
When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected.
False
When using the account pay ledger, the total amount due for all customers is summarized in a single general ledger acct.
False
Amounts recorded in general amount columns of a cash payments journal are posted individually to the general ledger account named in the account title column.
True
An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.
True
An error in posting may cause income to be understated or overstated.
True
At the end of the month, the accounts payable credit column total of a purchases journal is posted to the controlling account.
True
Each entry in the accounts payable columns of a cash payments journal affects the vendor name in the account title column.
True
The account form for a vendor has a credit balance column because accounts payable is a liability and liabilities have normal credit balances.
True
The balance of the controlling account, accts payable, equals the total of all vendor account balances in the accounts payable subsidiary ledger
True
The number of transactions determines how often to post to a general ledger.
True
When using accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account
True
A business with transactions involving most the receipt or payment of cash, generally does not use any ledgers.
...
Each amount in a cash receipts journals accounts receivable columns is posted individually to an account in the accounts receivable ledger.
...
The heading of the balance column of an account in the accounts payable ledger is titled "debit balance".
...
The number of entries that may be recorded on each account form depends on the number of lines provided.
...
When a sale causes the balance of a customer account in an accounts rec ledger to change the balance of the controlling account, accounts receivable, remains the same.
...
Accounts payable is a single general ledger account that summarizes the total amount owed to all vendors.
True
A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.
True
A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.
True
