Chapter 4 Exam

Front

True/False: A journal shows in one place all the changes in a single account.

Back

False

Front

True/False: The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

Back

True

Front

True/False: The two steps for opening an account are writing the account title and recording the balance.

Back

False

Front

True/False: The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance.

Back

True

Front

True/False: The Cash account is the first asset account and is numbered 110.

Back

True

Front

True/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.

Back

False

Front

True/False: If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.

Back

True

Front

True/False: 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.

Back

False

Front

True/False: When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers.

Back

True

Front

True/False: When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.

Back

True