Chapter 4 Accounting Exam Questions And Answers Rated 100% !!!

All corrections for posting errors should be made in a way that leaves no question as to the correct amount. - ANS true A journal shows in one place all the changes in a single account. - ANS false The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure. - ANS true The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger. - ANS false The two steps for opening an account are writing the account title and recording the balance. - ANS false The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance. - ANS true The Cash account is the first asset account and is numbered 110. - ANS true The steps for posting are to write the date, the journal page number, the amount, and the balance. - ANS false If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash. - ANS false If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit. - ANS true A group of accounts is called a ledger. - ANS true The only use for the Post. Ref. column of a journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted. - ANS false When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers. - ANS true When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515. - ANS true Errors discovered after an entry is posted may be corrected by ruling through the item. - ANS false The first digit in the account number 520 means that the account is in the_________. - ANS expense 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 __________. - ANS doing file maintenance The procedure for transferring information from a journal entry to a ledger account is __________. - ANS posting The last step in the posting procedure is to write the __________. - ANS account number in the post ref column of the account 5. The second step in the posting procedure is to write the __________. - ANS journal page number in the post ref column of the account An account number in the journal's Post. Ref. column shows __________. - ANS the account to which an amount is posted Posting references in a journal are __________. - ANS none of these If posting is interrupted, the accounting personnel know to resume posting __________. - ANS on the line with a blank post ref column in the journal Determining that the amount of cash agrees with the accounting records is __________. - ANS proving cash If an error requires a correcting entry, the source document describing the correction to be made__________. - ANS is a memorandum A ledger that contains all accounts needed to prepare financial statements. - ANS general ledger The number assigned to an account. - ANS account number A group of accounts. - ANS ledger The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. - ANS file maintenance Writing an account title and number on the heading of an account. - ANS opening an account Transferring information from a journal entry to a ledger account. - ANS posting Determining that the amount of cash agrees with the balance of the Cash account in the accounting records. - ANS proving cash An additional journal entry made to correct an incorrect journal entry, - ANS correcting entry