Chapter 4 Test Review

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

• True

• False

The steps for posting are to write the date, the journal page number, the amount, and the balance.

• 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

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

• True

• False

A group of accounts is called a ledger.

• True

• False

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance.

• True

• False

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

• True

• False

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

• True

• False

The Cash account is the first asset account and is numbered 110.

• True

• False

When posting is complete, the Post. Ref. column of the journal is completely filled in with account numbers.

• True

• False