Accounting Chapter 4

The first digit in the account number 120 means that the account is in the _____ division of the general ledger.

• expense

• revenue

• liability

• asset

A business has the following expense accounts: 510 Advertising Expense; 520 Miscellaneous Expense; 530 Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ____.

• 550

• 540

• 525

• 515

A new account to be added between accounts 530 and 540 will be assigned the number _____.

• 539

• 537

• 535

• 531

The first step in the posting procedure in writing ______.

• calculating the new balance

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

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

• the entry date in the Date column of the account

When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the account personnel are _____.

• editing

• journalizing

• doing file maintenance

• posting

The procedure for transferring information from a journal entry to a ledger account is _____.

• editing

• journalizing

• file maintenance

• posting

When the previous balance of an account is a debit and a debit amount is posted to the account, the new balance is a

• debit

• credit

• normal balance

• none of these

While posting, you received a phone call. How do you know where to resume posting?

• the next day

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

• at the beginning of the journal page

• all of these are correct

The last step in the posting procedure is writing ____.

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

• the entry date in the Date column of the account

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

• none of these

An account number in the journal's Post. Ref. column shows _____.

• that work on that journal page is completed

• the account to which an amount is posted

• the date of the entry

• none of these