Accounting Chapter 4 MC and TF Review

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

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The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

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The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.

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A group of accounts is called a ledger.

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The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance.

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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 would include a credit to Cash.

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

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Separate amounts in general amount columns are not posted individually.

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The column total of the General Credit column is posted.

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

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