Posting to the General Ledger

If a credit is posted to a liability account, the amount of the credit

• will be added to the previous account balance to determine the new credit balance

• will be subtracted from the previous account balance to determine the new credit balance

• will be added to the previous account balance to determine the new debit balance

• will be subtracted from the previous account balance to determine the new debit balance

What happens when a credit is posted to an asset account?

• The account balance increases

• The account balance decreases

• The account balance remains unchanged

• The balance is transferred to a revenue account

A schedule that contains all accounts needed to prepare financial statements

• General Journal

• General Ledger

• All Sales Invoices

• Source Documents

What is the effect of a credit entry on a revenue account?

• It transfers the balance to an asset account

• It decreases the account balance

• It increases the account balance

• It has no effect on the account balance

When adding a new expense number between 510 and 520 the new account number would be

• 511

• 515

• 519

• any number you choose

Rent Expense was posted to Miscellaneous Expense in error. Which corrective entry below should be made?

• Credit Rent Expense and Debit Miscellaneous Expense

• Debit Rent Expense and Credit Miscellaneous Expense

• Credit Miscellaneous Expense and Debit Cash

• Debit Rent Expense and Credit Cash

An additional journal entry made to correct an incorrect journal entry

• file maintenance

• opening an account

• proving cash

• correcting entry

After a journal has been posted

• the Post Ref. column on the Journal is filled in with the account number

• the Post Ref. column on the Journal is filled in with a page number

• the Post Ref. column on the Journal is filled in with the source document number

• the Post Ref. column on the Journal is filled in with the invoice number

The number assigned to an account

• account number

• invoice number

• posting number

• Journal page number

What is the primary purpose of a general journal in accounting?

• To record all transactions in chronological order

• To summarize financial statements

• To calculate net income

• To manage cash flow