Accounting Chapter 4 Quest

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

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A chart of accounts is a list of account titles and numbers showing the location of each account in a ledger.

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On a chart of accounts, all asset and expense accounts are in the same division.

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

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

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

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Posting is transferring information from a journal entry to a ledger account.

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If a new account is located between accounts numbered 210 and 220, the new account number should be 215.

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A blank in the Post. Ref. column of the journal indicates that posting for that line still needs to be completed.

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The posting reference is always recorded in the journal as the first step in the posting procedure.

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