Accounting Chapter 7

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

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?

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

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

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

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.

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

What is the purpose of a trial balance?

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

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