Ch 4 Accounting Posting
Terms in this set (35)
A journal shows in one place all the changes in a single account (T/F).
False--ledger (NOT journal)
A chart of accounts is a list of account titles and numbers showing the location of each account in a ledger (T/F).
On a chart of accounts, all asset and expense accounts are in the same division (T/F).
False--asset and expense accounts are in different divisions
Account numbers may be assigned by 10s so that new accounts can be added easily (T/F).
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting (T/F).
Fales--file maintenance (NOTt posting)
If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120 (T/F).
If a new account is located between accounts numbered 210 and 220, the new account number should be 215 (T/F).
Posting is transferring information from a journal entry to a ledger account (T/F).
A blank in the Post. Ref. column of the journal indicates that posting for that line still needs to be completed (T/F).
The posting reference is always recorded in the journal as the first step in the posting procedure (T/F).
False--The date (NOT The posting reference)
Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form (T/F).
The two steps for opening an account are writing the account title and recording the balance (T/F).
False--and writing the account number (NOT and recording the balance)
Posting sorts journal entries so that all debits and credits affecting each account are brought together in one place (T/F).
Each amount in the Debit and Credit columns of a general journal is posted to the account written in the Account Title column (T/F).
Whenever the credit amount in an account exceeds the debit amount, the balance is a debit (T/F).
False--the balance is a credit (NOT the balance is a debit)
If the cash balance in the checkbook equals the cash balance in the cash account, cash is proved (T/F).
A ledger is a group of accounts (T/F).
A ledger that contains all accounts needed to prepare financial statements is a general ledger (T/F).
At the end of a year, accounting departments perform file maintenance by opening new files for the next year's journals and ledgers (T/F).
False--file mainentance can occur throughout the year
Journal errors discovered before entries are posted are corrected by first preparing a memorandum describing the corrections to be made (T/F).
False--no memorandum is necessary
The first asset account is numbered 100 (T/F).
False--the first asset account is Cash which is account number 110
The second division in the chart of accounts is the owner's equity division (T/F).
False--the second division is the liabilities division
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515 (T/F).
A general ledger account is opened for each account listed on a chart of accounts (T/F).
Accounts in a general ledger are arranged in an order different from how the accounts appear on financial statements (T/F).
False--Accounts are arranged in the same order as how they appear on financial statements
When an error in a journal entry has already been posted, the incorrect journal entry should be corrected with an additional journal entry (T/F).
A journal entry made to correct an error in the ledger is called an adjusting entry (T/F).
False--this is called a correcting entry (NOT an adjusting entry)
The first digit in the account number 120 means that the account is in the ______ division of the general ledger.
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 ______ .
doing file maintenance
A new account to be added between accounts 530 and 540 will be assigned the number ______ .
A business has the follwing expense accounts: 510-Advertising Expense, 520-Miscellaneous Expense, 530-Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ______ .
The procedure for transferring information from a journal entry to a ledger account is ______ .
An account number in the journal's Post. Ref. column shows ______ .
the account to which an amount is posted
Posting references in a journal are ______ .
NONE OF THE ABOVE on ExamView Pretest and Test--(posting references in a journal are important so you know which items have been posted and which have not)
If posting is interrupted, the accounting personnel know to resume posting _______ .
on the line with a blank Post. Ref. column in the journal