Accounting 1: Chapter 4 Review

All corrections for posting errors should be made in a way that leaves no question as to the correct amount.

• True

• False

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

• 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

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

• 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

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

• True

• False

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

• True

• False

If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.

• 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