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- 1. Multiple Choice
The first digit in the account number 120 means that the account is in the _____ division of the general ledger.
expense
revenue
liability
asset
- 2. Multiple Choice
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 ____.
550
540
525
515
- 3. Multiple Choice
A new account to be added between accounts 530 and 540 will be assigned the number _____.
539
537
535
531
- 4. Multiple Choice
The first step in the posting procedure in writing ______.
calculating the new balance
the entry amount in the Debit or Credit column of the account
the journal page number in the Post. Ref. column of the account
the entry date in the Date column of the account
- 5. Multiple Choice
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the account personnel are _____.
editing
journalizing
doing file maintenance
posting
- 6. Multiple Choice
The procedure for transferring information from a journal entry to a ledger account is _____.
editing
journalizing
file maintenance
posting
- 7. Multiple Choice
When the previous balance of an account is a debit and a debit amount is posted to the account, the new balance is a
debit
credit
normal balance
none of these
- 8. Multiple Choice
While posting, you received a phone call. How do you know where to resume posting?
the next day
on the line with a blank Post. Ref. column in the journal
at the beginning of the journal page
all of these are correct
- 9. Multiple Choice
The last step in the posting procedure is writing ____.
the account number in the Post. Ref. column of the journal
the entry date in the Date column of the account
the journal page number in the Post. Ref. column of the account
none of these
- 10. Multiple Choice
An account number in the journal's Post. Ref. column shows _____.
that work on that journal page is completed
the account to which an amount is posted
the date of the entry
none of these
- 11. Multiple Choice
When the previous balance of an account is a debit and a credit amount that is less than the debit balance is posted to the account, the new balance is a
debit
credit
normal balance
none of these
- 12. Multiple Choice
Determining that the amount of cash agrees with the accounting records is
file maintenance
proving cash
journalizing
posting
- 13. Multiple Choice
A chart of accounts is a list of account titles and numbers showing the location of each account in a ledger
True
False
- 14. Multiple Choice
A journal shows in one place all the changes in a single account.
True
False
- 15. Multiple Choice
On a chart of accounts, all asset and expense accounts are in the same division.
True
False
- 16. Multiple Choice
Account numbers may be assigned by 10s so that new accounts can be added easily.
True
False
- 17. Multiple Choice
Posting sorts journal entries so that all debits and credits affecting each account are brought together in one place.
True
False
- 18. Multiple Choice
Each amount in the Debit and Credit columns of a general journal is posted to the account written in the Account Title column.
True
False
- 19. Multiple Choice
Whenever the credits in an account exceed the debit, the balance is a debit.
True
False
- 20. Multiple Choice
Cash can be proved at any time.
True
False
- 21. Multiple Choice
If the cash balance in the checkbook equals the cash balance in the cash account, cash is proved.
True
False
- 22. Multiple Choice
A ledger is a group of accounts.
True
False
- 23. Multiple Choice
When an error in a journal entry has already been posted, the incorrect journal entry should be corrected with an additional journal entry.
True
False
- 24. Multiple Choice
When all posting is complete, the journal's Post. Ref. column is completely filled.
True
False
- 25. Multiple Choice
All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
True
False
- 26. Multiple Choice
The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.
True
False
- 27. Multiple Choice
The two steps for opening an account are writing the account title and recording the balance.
True
False
- 28. Multiple Choice
The steps for posting are to write the date, the journal page number, the amount, and the balance.
True
False
- 29. Multiple Choice
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.
True
False
- 30. Multiple Choice
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.
True
False
- 31. Multiple Choice
Errors discovered after an entry is posted may be corrected by ruling through the item.
True
False
- 32. Multiple Choice
The first digit in the account number 520 means that the account is in the
asset division of the general ledger
liability division of the general ledger
revenue division of the general ledger
expense division of the general ledger
- 33. Multiple Choice
The second step in the posting procedure is to write the
entry amount in the Debit or Credit column of the account
account number in the Post. Ref. column of the journal
journal page number in the Post. Ref. column of the journal
entry date in the Date column of the account
- 34. Multiple Choice
Posting references in a journal are
not necessary
always placed in an account's Post. Ref. column
the first item recorded when posting
none of these
- 35. Multiple Choice
If an error requires a correcting entry, the source document describing the correction to be made
is a memorandum
depends on the type of correcting entry
is a check stub
depends on the type of error made
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