30 terms

chapter 12 accounting

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accounts payable ledger
a subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account
accounts receivable ledger
a subsidiary ledger containing only accounts for charge customers
controlling account
an account in a general ledger that summarizes all accounts in a subsidiary ledger
schedule of accounts payable
a listing of vendor accounts, account balances, and total amounts due all vendors.
schedule of accounts receivable
a listing of customer accounts, account balances, and total amount due from all customers.
when using an accounts receivable ledger, the total amount due from all customers is summarized in a single ledger account
true
a change in the balance of a vendor account also changes the balance of the controlling account Accounts Payable
true
The account form for a vendor has a credit balance column because accounts payable are liabilities and liabilities have normal credit balances
true
Each transaction in a purchases journal is posted individually to a vendor account in the accounts payable ledger.
true
A schedule of accounts payable is prepared before all entries in a journal are posted
False
each cash receipt on account from a customer is posted as a credit to an account in the accounts receivable ledger
true
the accounts receivable ledger is proved by completing a trial balance
false
amounts recorded in general amount columns are posted individually to the general ledger account named in the account title column
true
one of the monthly totals of a sales journal is posted as a credit to accounts receivable
false
the total amount of the purchases journal is posted in two general ledger accounts-- Purchases and Accounts Payable
true
the totals of the general columns of a cash receipts journal are usually posted only at the end of a month
false
the best order to post special journals is (1) sales, (2) purchases, (3) general, (4) cash receipts, (5) cash payments
true
frequency of posting to the general ledger is determined by how many accounts are in the chart of accounts
false
it is usually necessary to have up-to-date balances in the general ledger at all times
false
posting does not have to be done at the end of the month
false
when opening a new page in an accounts payable ledger
balance is written in the item column
each entry in the purchases journal is an amount that
is to be paid to a vendor
the accounts receivable ledger contains an account for
each customer who will pay later
the total of all customer account balances in the accounts receivable ledger equals
the balance in the accounts receivable controlling account
completion of posting an individual amount from the sales journal is indicated by
writing the subsidiary ledger account number in the post ref column
the separate amounts in the accounts receivable credit column of a cash receipts journal are
posted individually
each account in a general ledger has
four amount columns
the separate amounts in the general debit column of a cash payments journal are
posted individually
the special amount column totals of the sales journal are posted
monthly
the accounts payable debit column of a cash payments journal is totaled and
posted at the end of the month