Chapter 11 Accounting Review

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.

• True
• False

When a sale causes the balance of a customer account in an accounts receivable ledger to change, the balance of the controlling account, Accounts Receivable, remains the same.

• True
• False

When using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account. 

• True
• False

Amounts recorded in general amount columns of a cash payments journal are posted individually to the general ledger account named in the account named in the account title column.

• True
• False

A business with transactions involving mostly the receipt and payment of cash generally does not use any ledgers. 

• True
• False

Accounts payable is a single general ledger account that summarizes the total amount owed to all vendors. 

• True
• False

An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.

• True
• False

The balance of the controlling account, accounts payable, equals the total of all vendor account balances in the accounts payable subsidiary ledger.

• True
• False

At the end of the month, the accounts payable credit column total of a purchases journal is posted to the controlling account.

• True
• False

The number of entries that may be recorded on each account form depends on the number of lines provided.

• True
• False