True/False
Indicate whether the sentence or statement is true
or false.
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1.
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A
journal shows in one place all the changes in a single account.
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2.
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A
chart of accounts is a list of account titles and numbers showing the location of each account in a
ledger.
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3.
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On a
chart of accounts, all asset and expense accounts are in the same division.
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4.
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Account numbers may be assigned by 10s so that new accounts can be added
easily.
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5.
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The
procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records
current is posting.
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6.
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If a
business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and
120.
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7.
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If a
new account is located between accounts numbered 210 and 220, the new account number should be
215.
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8.
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Posting is transferring information from a journal entry to a ledger
account.
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9.
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A
journal page number is written in the Post. Ref. column of an account to show that posting of the
entry is completed.
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10.
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The
account number is placed in the Post. Ref. column of the journal as the last step in the posting
procedure.
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11.
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If
the previous account balance and the current entry posted to an account are both debits, the new
account balance is a debit.
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12.
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A
ledger that contains all accounts needed to prepare financial statements is a general
ledger.
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13.
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At
the end of a year, accounting departments perform file maintenance by opening new files for the next
year's journals and ledgers.
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14.
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Opening an account refers to the procedure of writing an account title and number on
the heading of an account.
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15.
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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.
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16.
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The
first asset account is numbered 100.
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17.
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The
second division in the chart of accounts is the owner's equity division.
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18.
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When
adding a new expense account between accounts numbered 510 and 520, the new account is assigned the
account number 515.
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19.
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The
two steps for opening an account are writing the account title and recording the
balance.
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20.
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The
posting reference should always be recorded in the journal's Post. Ref. column before amounts are
recorded in the ledger.
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21.
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The
only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries
in the journal still need to be posted if posting is interrupted.
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22.
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The
steps for posting are to write the date, journal page number, amount, and balance.
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23.
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When
an account is no longer needed, it is removed from the general ledger but not the chart of
accounts.
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24.
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The
month and year are written in the Date column of an account for each entry posted to that
account.
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25.
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Cash
can be proved at any time a business wishes to verify the accuracy of the cash records.
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26.
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Cash
is always proved at the end of a month.
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27.
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The
balance in the checkbook will agree with the balance in the cash account after cash is
proved.
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28.
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Each
amount in the Debit and Credit columns in a general journal is posted to the account written in the
Account Title column.
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29.
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When
all posting is completed, the journal's Post. Ref. column is completely filled.
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30.
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Cash
is proved by comparing the cash balance shown in the checkbook with the cash balance in the general
ledger cash account.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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31.
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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 | | |
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32.
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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 the above | | |
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33.
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A new
account to be added between accounts 530 and 540 will be assigned the number ____.
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34.
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A
business has the following 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 ____.
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35.
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The
first step in the posting procedure is writing ____. a. | the entry date
in the Date column of the account | b. | the journal page number in the Post. Ref. column of the
account | c. | the entry amount in the Debit or Credit column of the
account | d. | none of the above | | |
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36.
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The
last step in the posting procedure is writing ____. a. | the entry date
in the Date column of the account | b. | the journal page number in the Post. Ref. column of the
account | c. | the entry amount in the Debit or Credit column of the
account | d. | none of the above | | |
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37.
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An
account number in the journal's Post. Ref. column shows ____. a. | the account to
which an amount is posted | b. | the date of the entry | c. | that work on
that journal page is completed | d. | none of the above | | |
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38.
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Posting references in a journal are ____. a. | not
necessary | b. | the first item recorded when posting | c. | always placed in
an account's Post. Ref. column | d. | none of the above | | |
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39.
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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 the
above | | |
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40.
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The
account balance is calculated and recorded ____. a. | as each entry is recorded in the
account | b. | at the end of each month | c. | once on each
account page | d. | none of the above | | |
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41.
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The
second step in the posting procedure is writing ____. a. | the entry date
in the Date column of the account | b. | the journal page number in the Post. Ref. column of the
account | c. | the entry amount in the Debit or Credit column of the
account | d. | none of the above | | |
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42.
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The
account number is placed in the Post. Ref. column of the journal to show ____. a. | to which account
an amount has been posted | b. | that the amounts are correct | c. | to which journal
page the amount has been transferred | d. | none of the above | | |
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43.
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When
the previous balance of an account is zero and a credit amount is posted to the account, the new
balance is ____. a. | a dollar
amount | b. | a credit | c. | a
debit | d. | none of the above | | |
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44.
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When
the previous balance of an account is a debit and a debit amount is posted to the account, the new
balance is ____. a. | a dollar
amount | b. | a credit | c. | a
debit | d. | none of the above | | |
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45.
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Determining that the amount of cash agrees with the accounting records is
____. a. | posting | b. | journalizing | c. | proving
cash | d. | none of the
above | | |
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