Accounting Chapter 4

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

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

If a new account is located between accounts numbered 510 and 520, the new account number should be 515.

• True

• False

A journal page number is written in the Post. Ref. column of an account to show that posting of the entry is completed.

• 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

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.

• True

• False

The cash account is the first asset account and is numbered 100.

• True

• False

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

• True

• False