Accounting: Chapter 4 Review

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

• True
• False

Account numbers may be assigned by 10s so that new accounts can be added easily.

• True
• False

The procedure for arranging accounts in a general ledger, assigning account numbers and keeping records current is posting.

• True
• False

A group of accounts is called a ledger.

• True
• False

If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.

• True
• False

The account number is placed in the Post. Ref. column of the journal as the last step in the posting process.

• True
• False

The column total of the General Debit column is posted.

• True
• False

Only the column totals for special amount columns in a journal are posted.

• True
• False

The cash account is the first asset account and is numbered 100.

• True
• False

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

• True
• False