Chapter 11 True and False
At the end of the week, the cash payment journal's Accounts Payable Credit column total is posted to the controlling account.
False
Daily general ledger account balances are necessary for a business.
False
The account 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 has to spend on accounting determines the number of ledgers used in an accounting system.
False
The heading of the balance column of an account in the accounts payable ledger is titled Debit Balance.
False
When a sale causes the balance of a customer account in an accounts receivable ledger to change, the balance of the controlling account, Accounts Receivable, remains the same.
False
When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected.
False
Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account named 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 on the income statement.
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 amount in a cash receipt journal's Accounts Receivable columns is posted individually to an account in the accounts receivable ledger.
True
Each entry in the Accounts Payable columns of a cash payments journal affects the vendor named in the Account Title column.
True
The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger.
True
The number of entries that may be recorded on each account form depends on the number of lines provided.
True
The number of transactions determines how often to post to a general ledger.
True
When using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account.
True
A business with transactions involving mostly the receipt and payment of cash generally does not use any ledgers.
False
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
Accounts payable is a single general ledger account that summarizes the total amount owed to all vendors.
True
