Chapter 5 Chart of Accounts / General Ledger

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

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 posting reference should always be recorded in the journal's Post Ref. column before amounts are recorded in the ledger.

• True

• False

The only reason for the Post Ref. column of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted.

• True

• False

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

• True

• False

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

• True

• False