Accounting Chapter 7

Front

Opening an account in a ledger involves writing the account title and the account number on the account form.

Back

True

Front

Every posting requires the year, month, and day to be entered in the Date column of the ledger account for every transaction. True or False?

Back

False

Front

Every amount posted will either increase or decrease the balance of a ledger account.

Back

True

Front

The notation “G3 or J3” in the Posting Reference column of a ledger account indicates the data was posted from general journal page 3.

Back

True

Front

A credit posting to the Office Equipment account will result in an increase to that account.

Back

False

Front

An error in posting may cause: income to be overstated or understated in the income statement, a business to pay too much to a vendor, cash on hand to be less than the balance in the cash amount.

Back

all of the answers are correct

Front

When preparing a trial balance, which of the following would not be considered a procedure? Options: check to see if both columns are equal, double rule (line) both columns, write the general ledger account names in the work sheet account name column, all of these are correct procedures

Back

all of these are correct procedures

Front

What is the purpose of a trial balance?

Back

to prove the ledger debit and credit balance are equal

Front

When the beginning a new page for a General Ledger account, placing a check mark in the Post. Ref column indicates that

Back

the amount entered is not being posted from a journal

Front

When posting in the general ledger, the balance of the account should always be on what side?

Back

normal balance side