Accounting I Ch. 4

A journal shows in one place all the changes to a single account.

• True
• False

Account numbers are by 10's so that new accounts can be added easily.

• True
• False

If a business only has two asset accounts, cash and supplies, the two accounts are account 110 and 120.

• True
• False

The first step for opening an account are writing the account title and recording the balance.

• True
• False

A journal entry made to correct an error in the ledger is called an adjusting entry.

• True
• False

The 100 accounts in the Chart of Accounts are liability accounts.

• True
• False

A new account to be added between 530 and 540 would be assigned number 535.

• True
• False

Posting references in a journal are not necessary.

• True 
• False

Writing the date is the first step in the posting procedure.

• True
• False

An account number in the journal's Post. Ref. column shows the account to which the amount was posted.

• True 
• False