Chapter 4 Review for EXAM

The first step in the posting procedure is writing the a. entry date in the Date column of the account b. journal page number in the Post Ref. column of the account. c. entry amount in the Debit or Credit column of the account. d. none of theses

A. ENTRY DATE IN THE DATE COLUMN OF THE ACCOUNT

The procedure for transferring information from a journal entry to a ledger account is a. posting b. journalizing c. file maintenance d. none of theses

A. POSTING

The first digit in the account number 120 means that the account is in the a. expense division of the general ledger b. revenue division of the general ledger c. liability division of the general ledger d. asset division of the general ledger

D. ASSET DIVISION OF THE GENERAL LEDGER

separate amounts in the sales credit column of the journal are a. rounded to the nearest dollar b. posted individually c. posted frequently d. none of these.

D. NONE OF THESE (only the total of the column is posted)

The last step in the posting procedure is writing the a. entry date in the Date column of the account b. journal page number in the Post Ref column of the account c. entry amount in the Debit or Credit column of the account d. none of these.

D. NONE OF THESE (the last step when posting is to write the account number from the ledger into the post reference column of the journal)

Posting references in a journal are a. not necessary b. the fist item recorded when posting c. always placed in an account's post reference column d. none of these

D. NONE OF THESE (they are necessary, they are the last item recorded when posting, they are placed in the account's post reference column, but also under the totals)

A journal page number is written in the Post. Ref. column of an account to show that posting of the entry is completed.

False, an account number is posted in the post reference column of the journal to show that the posting of the entry is complete

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

False, file maintenance

A journal shows in one place all the changes in a single account.

False, general ledger account

The column total of the General Debit column is posted.

False, the column totals of the sales credit, and cash debit and credit are posted.

8. If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.

True

A group of accounts is called a ledger.

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

Only the column totals for special amount columns in a journal are posted.

True

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

True

If posting is interrupted, the accounting personnel know to resume posting a. on the line with a blank post ref. column in the journal b. at the beginning of the journal page c. the next day d. all of these

a. ON THE LINE WITH A BLANK POST REFERENCE COLUMN IN THE JOURNAL

an account number in the journal's post reference column shows a. the account to which an amount is posted b. the date of the entry c. the work on that journal page is completed d. none of these

a. THE ACCOUNT TO WHICH AN AMOUNT IS POSTED

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 a. posting b. doing file maintenance c. journalizing d. none of these

b. DOING FILE MAINTENANCE

If both amounts on a journal line are recorded in special amount columns a. both amounts are posted individually b. only one of the amounts is posted individually c. neither amount is posted individually d. all of these.

c. NEITHER AMOUNT IS POSTED INDIVIDUALLY