Accounting I Chapter 7 Quiz

The purpose of posting is to show the changes that take place in the business's accounts as a result of a financial transaction.

• True

• False

A company may determine when it posts transactions to the ledger which depends on the company's size and resources.

• True

• False

Every amount posted will either increase or decrease the balance of a ledger account

• True

• False

Every journal entry requires a posting to at least two ledger accounts.

• True

• False

A credit posting to the Office Equipment account (Asset) will result in an increase to that account.

• True

• False

In the preparation of a trial balance, all accounts are listed in the order in which they appear on the chart of accounts, including those accounts with a zero balance.

• True

• False

A trial balance is prepared before posting is completed.

• True

• False

Opening an account in a ledger involves writing the account title and the account number on the account form.

• True

• False

Errors discovered after posting has taken place require a

• Trial Balance

• Correcting Entry

• Posting

• Journal

A periodic report prepared by a business to test the equality of total debits and total credits in the ledger is called a

• Trial Balance

• Ledger

• Journal

• Correcting Entry