Accounting Chapter 4

All corrections for posting errors should be made in a way that leaves no question as to the correct amount.

• True

• False

Errors discovered after an entry is posted may be corrected by ruling through the item.

• 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 check mark in the Post. Ref. column of the journal indicates that the amounts on that line are not posted individually.

• True

• False

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

• True

• False

With the exception of the total lines, the Post. Ref. column of the journal is completely filled in with either an account number or a check mark.

• 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 two steps for opening an account are writing the account title and recording the balance.

• True

• False

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

• True

• False

A group of accounts is called a ledger.

• True

• False