Accounting - Chapter 4 Review

The first digit in the account number 520 means that the account is in the

• expense division of the general ledger

• revenue division of the general ledger

• liability division of the general ledger

• asset division of the general ledger

When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are

• posting

• journalizing

• doing file maintenance

• none of these

The procedure for transferring information from a journal entry to a ledger account is

• posting

• journalizing

• file maintenance

• none of these

The last step in the posting procedure is to write the

• entry date in the Date column of the account

• journal page number in the Post. Ref. column of the account

• account number in the Post. Ref. column of the journal

• entry amount in the Debit or Credit column of the account

The second step in the posting procedure is to write the

• entry date in the Date column of the account

• journal page number in the Post. Ref. column of the account

• account number in the Post. Ref. column of the journal

• entry amount in the Debit or Credit column of the account

An account number in the journal’s Post. Ref. column shows

• the date of the entry

• that work on that journal page is completed

• the account to which an amount is posted

• none of these

Posting references in a journal are

• the first item recorded when posting

• always placed in an account’s Post. Ref. column

• not necessary

• none of these

If posting is interrupted, the accounting personnel know to resume posting

• on the line with a blank Post. Ref. column in the journal

• at the beginning of the journal page

• the next day

• all of these

Determining that the amount of cash agrees with the accounting records is

• posting

• journalizing

• proving cash

• none of these

If an error requires a correcting entry, the source document describing the correction to be made

• depends on the type of error made

• is a check stub

• depends on the type of correcting entry

• is a memorandum