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Posting to the General Ledger

Total questions: 20

Worksheet time: 17mins

Name
Class
Date
1.

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

a)

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

b)

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

c)

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

d)

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

2.

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

a)

The account balance increases

b)

The account balance decreases

c)

The account balance remains unchanged

d)

The balance is transferred to a revenue account

3.

A schedule that contains all accounts needed to prepare financial statements

a)

General Journal

b)

General Ledger

c)

All Sales Invoices

d)

Source Documents

4.

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

a)

It transfers the balance to an asset account

b)

It decreases the account balance

c)

It increases the account balance

d)

It has no effect on the account balance

5.

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

a)

511

b)

515

c)

519

d)

any number you choose

6.

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

a)

Credit Rent Expense and Debit Miscellaneous Expense

b)

Debit Rent Expense and Credit Miscellaneous Expense

c)

Credit Miscellaneous Expense and Debit Cash

d)

Debit Rent Expense and Credit Cash

7.

An additional journal entry made to correct an incorrect journal entry

a)

file maintenance

b)

opening an account

c)

proving cash

d)

correcting entry

8.

After a journal has been posted

a)

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

b)

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

c)

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

d)

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

9.

The number assigned to an account

a)

account number

b)

invoice number

c)

posting number

d)

Journal page number

10.

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

a)

To record all transactions in chronological order

b)

To summarize financial statements

c)

To calculate net income

d)

To manage cash flow

11.

A ledger is a

a)

group of accounts

b)

form to enter transactions in chronological order

c)

business paper from which information is obtained for an entry

d)

a document used to record sales

12.

Writing an account title and a number on the heading of an account.

a)

journaling

b)

opening an account

c)

posting

d)

correcting entry

13.

The General Ledger

a)

pages must all have an account balance >0

b)

can have more than one account on a page if space permits

c)

should be updated at least once a month

d)

should have a page for each account listed in the chart of accounts

14.

A journaling error is discovered after this erroneous transaction was posted to the general ledger. One should

a)

erase the posting error from the general ledger and recalculate

b)

scratch through the posting error on the general ledger and initial

c)

correct by adding a correcting entry, and document with a memorandum

d)

check with the department manager to see if he/she wants to make the correction

15.

Transferring information from a journal entry to a ledger account

a)

journaling

b)

posting

c)

file maintenance

d)

correcting entry

16.

There are 4 steps in posting an amount from the debit column of a general journal

a)

True

b)

False

17.

What is the effect of a debit entry on an expense account?

a)

It has no effect on the account balance

b)

It increases the account balance

c)

It decreases the account balance

d)

It transfers the balance to a liability account

18.

If a debit is posted to an asset account, the amount of the debit

a)

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

b)

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

c)

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

d)

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

19.

What is the purpose of a trial balance?

a)

To prepare financial statements

b)

To ensure that debits equal credits in the ledger

c)

To calculate net income

d)

To record all transactions in chronological order

20.

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

a)

True

b)

False