True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Posting information from journals to ledger accounts summarizes in one place
transactions affecting each ledger account.
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2.
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When
the balance of a vendor account in an accounts payable ledger is changed, the balance of the
controlling account is unaffected.
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3.
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The
heading of the balance column of an account in the accounts payable ledger is titled Debit
Balance.
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4.
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The
amounts on each line of a purchases journal are posted to vendor accounts in the accounts payable
ledger.
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5.
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The
total amount of the purchases journal is posted to the purchases and accounts receivable
accounts.
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6.
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Each
amount in the general columns of a cash payments journal is posted to a general ledger
account.
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7.
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The
totals of the general columns of the cash payments journal are posted.
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8.
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A
schedule of accounts payable is prepared before all journal entries have been posted.
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9.
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The
total of all customer account balances in the accounts receivable ledger equals the balance of the
general ledger controlling account Accounts Payable.
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10.
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Entries in a sales journal affect account balances in both the accounts receivable
ledger and the general ledger.
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11.
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Each
amount in the sales journal's Accounts Receivable Debit column is posted to the accounts receivable
ledger.
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12.
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Entries in a cash receipts journal affect account balances in the accounts payable
ledger and the general ledger.
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13.
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Each
entry in the Accounts Receivable Credit column of the cash receipts journal affects the customer
named in the Account Title column.
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14.
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Each
amount in the General columns of a cash receipts journal is posted to a general ledger
account.
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15.
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A
listing of customer accounts, account balances, and total amount due from all customers is a schedule
of accounts receivable.
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16.
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Items
affecting customer or vendor accounts are posted periodically during the month.
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17.
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A
general ledger sorts and summarizes all information affecting income statement and balance sheet
accounts.
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18.
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Accounts Payable is a single general ledger account that summarizes the total amount
owed to all vendors.
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19.
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An
account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling
account.
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20.
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The
balance of the controlling account Accounts Payable equals the total of all vendor account balances
in the accounts payable subsidiary ledger.
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21.
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Balances of general ledger accounts are usually needed only when financial statements
are prepared.
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22.
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The
number of transactions determines how often to post to a general ledger.
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23.
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A
vendor account is opened by writing the vendor name and vendor number on the heading of the ledger
account.
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24.
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When
using an accounts receivable ledger, the total amount due from all customers is summarized in a
single general ledger account.
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25.
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The
account form for a vendor has a Credit Balance column because accounts payable are liabilities and
liabilities have normal credit balances.
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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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26.
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The
ledger that contains all accounts needed to prepare financial statements is the
____. a. | accounts payable
ledger | c. | general
ledger | b. | accounts receivable ledger | d. | subsidiary ledger | | | | |
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27.
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A
ledger that is summarized in a single general ledger account is a ____. a. | ledger | c. | secondary
ledger | b. | controlling ledger | d. | subsidiary ledger | | | | |
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28.
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A
subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on
account is ____. a. | an accounts
payable ledger | c. | a general
ledger | b. | an accounts receivable ledger | d. | none of the above | | | | |
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29.
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An
account in a general ledger that summarizes all accounts in a subsidiary ledger is
____. a. | an expense
account | c. | a controlling
account | b. | a contra account | d. | a capital account | | | | |
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30.
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Each
account in a subsidiary ledger has ____. a. | two amount columns | c. | four amount columns | b. | three amount
columns | d. | none of the
above | | | | |
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31.
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The
amount on each line of a purchases journal is posted as a ____. a. | debit to an
account in the accounts payable ledger | b. | debit to an account in the accounts receivable
ledger | c. | credit to an account in the accounts payable
ledger | d. | credit to an account in the accounts receivable
ledger | | |
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32.
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Each
entry in the purchases journal is an amount that ____. a. | is to be paid to
a vendor | c. | is to be
collected from a customer | b. | has been paid to a vendor | d. | none of the above | | | | |
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33.
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Each
entry in the purchases journal is ____. a. | posted daily | c. | posted at the end of a month | b. | posted
often | d. | none of the
above | | | | |
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34.
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The
total amount of the purchases journal is posted to the general ledger account(s)
____. a. | Purchases | c. | Purchases and
Accounts Payable | b. | Accounts Payable | d. | none of the above | | | | |
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35.
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The
totals of the General columns of the cash payments journal are posted to ____. a. | the accounts
payable ledger | c. | the general
ledger | b. | the accounts receivable ledger | d. | none of the above | | | | |
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36.
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To
indicate that column totals are not to be posted, ____. a. | a check mark is
placed in parentheses under the total | b. | a check mark is placed in the Post. Ref. column of the journal
on the total line | c. | nothing is placed under the total | d. | an account
number is placed in the Post. Ref. column of the journal | | |
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37.
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A
vendor number is written in the Post. Ref. column of the journal as the last posting step to
____. a. | identify the
vendor | b. | start a new journal page | c. | show that
posting of this line to the accounts payable ledger is complete | d. | show the general
ledger account to which the total was posted | | |
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38.
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When
a customer account balance is changed, ____. a. | the total of all account balances will be less than the balance
of the controlling account | b. | all vendor numbers will change | c. | the balance of
the controlling account Accounts Receivable is also changed | d. | none of the
above | | |
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39.
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To
open a new customer account, ____. a. | the customer name is obtained from the first invoice
prepared | b. | the customer number is assigned | c. | the customer
name and number are written on the account form | d. | all of the
above | | |
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40.
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When
a credit is posted to the accounts receivable ledger, ____. a. | the new amount
posted in the Credit column is subtracted from the previous balance | b. | the source
document number and page number of the journal are written in the Post. Ref. column of the
account | c. | the credit amount is written in the Debit column of the
account | d. | Balance is written in the Item column | | |
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41.
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The
special amount column totals of the cash receipts journal are ____. a. | posted monthly
to a customer account | b. | posted to the general ledger controlling account at the end of
each month | c. | not posted | d. | posted
often | | |
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42.
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When
posting the Accounts Receivable Credit column total of the cash receipts journal, return to the
journal and write ____. a. | the account number in the Post. Ref.
column | b. | a check mark under the column total | c. | the account
number under the column total in parentheses | d. | none of the
above | | |
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43.
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A
listing of customer accounts, account balances, and total amount due from all customers is a
____. a. | schedule of
accounts payable | c. | subsidiary
ledger | b. | schedule of accounts receivable | d. | controlling list | | | | |
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44.
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A
schedule of accounts receivable is prepared ____. a. | before all current entries are posted | b. | after all
current entries are posted | c. | before the special column totals are
posted | d. | at the beginning of the month | | |
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45.
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