Accounting Chapter 4 Review

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

• True
• False

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

• True
• False

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

• 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 first digit in the account number 120 means that the account is in the 

• expense division of the general ledger
• revenue division of the general ledger
• liability division of the general ledger
• asset division of the general ledger

If all separate amounts on a journal line are recorded in special amount columns, 

• all amounts are posted individually
• only one of the amounts is posted individually
• neither amount is posted individually
• all of these

Posting references in a journal are

• not necessary.

• the first item recorded when posting.

• always placed in an account's Post. Ref. column.

• none of these.

The last step in the posting procedure is writing the

• entry date in the Date column of the account.

• journal page number in the Post. Ref. column of the account.

• entry amount in the Debit or Credit column of the account.

• none of these.

If posting is interrupted, the accounting personnel know to resume posting

• on the line with a blank Post. Ref. column in the journal.

• at the beginning of the journal page.

• on the next day.

• all of these.