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Indicate whether the statement is true or false.
1. The two steps for opening an account are writing the account title and recording the balance.
a.
True
b.
False
2. When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers.
a.
True
b.
False
3. If the previous account balance and the current entry posted to an account are both debits, the new account balance is a
debit.
a.
True
b.
False
4. The steps for posting are to write the date, the journal page number, the amount, and the balance.
a.
True
b.
False
5. All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
a.
True
b.
False
6. The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.
a.
True
b.
False
7. When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account
number 515.
a.
True
b.
False
8. The posting reference should always be recorded in the journal’s Post. Ref. column before amounts are recorded in the
ledger.
a.
True
b.
False
9. A group of accounts is called a ledger.
a.
True
b.
False
10. A journal shows in one place all the changes in a single account.
a.
True
b.
False
11. Errors discovered after an entry is posted may be corrected by ruling through the item.
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a.
True
b.
False
12. The Cash account is the first asset account and is numbered 110.
a.
True
b.
False
13. The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is
known as file maintenance.
a.
True
b.
False
14. 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.
a.
True
b.
False
15. 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.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
16. The first digit in the account number 520 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.
17. An account number in the journal’s Post. Ref. column shows
a.
the date of the entry.
b.
that work on that journal page is completed.
c.
the account to which an amount is posted.
d.
none of these.
18. Determining that the amount of cash agrees with the accounting records is
a.
posting.
b.
journalizing.
c.
proving cash.
d.
none of these.
19. 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 these.
20. The second step in the posting procedure is to write the
a.
entry date in the Date column of the account.
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b.
journal page number in the Post. Ref. column of the account.
c.
account number in the Post. Ref. column of the journal.
d.
entry amount in the Debit or Credit column of the account.
21. Posting references in a journal are
a.
the first item recorded when posting.
b.
always placed in an account’s Post. Ref. column.
c.
not necessary.
d.
none of these.
22. The last step in the posting procedure is to write the
a.
entry date in the Date column of the account.
b.
journal page number in the Post. Ref. column of the account.
c.
account number in the Post. Ref. column of the journal.
d.
entry amount in the Debit or Credit column of the account.
23. The procedure for transferring information from a journal entry to a ledger account is
a.
posting.
b.
journalizing.
c.
file maintenance.
d.
none of these.
24. If an error requires a correcting entry, the source document describing the correction to be made
a.
depends on the type of error made.
b.
is a check stub.
c.
depends on the type of correcting entry.
d.
is a memorandum.
25. 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.
journalizing.
c.
doing file maintenance.
d.
none of these.
Name:
Class:
Date:
Name:
Class:
Date: