Accounting I Ch 4

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

• True

• False

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account 515

• True

• False

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account 515

• True

• False

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

• 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 only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted.

• True

• False

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

• True

• False

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

• 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