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Questions and Answers
A journal shows in one place all the changes in a single account.
A journal shows in one place all the changes in a single account.
False
Account numbers may be assigned by 10s so that new accounts can be added easily.
Account numbers may be assigned by 10s so that new accounts can be added easily.
True
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting.
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting.
False
If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.
If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.
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A group of accounts is called a ledger.
A group of accounts is called a ledger.
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A journal page number is written in the Post.Ref. column of an account to show that posting of the entry is completed.
A journal page number is written in the Post.Ref. column of an account to show that posting of the entry is completed.
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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.
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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If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.
If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.
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The column total of the General Debit column is posted.
The column total of the General Debit column is posted.
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Only the column totals for special amount columns in a journal are posted.
Only the column totals for special amount columns in a journal are posted.
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The cash account is the first asset account and is numbered 100.
The cash account is the first asset account and is numbered 100.
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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.
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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The two steps for opening an account are writing the account title and recording the balance.
The two steps for opening an account are writing the account title and recording the balance.
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Separate amounts in special amount columns are posted individually.
Separate amounts in special amount columns are posted individually.
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Separate accounts in special amount columns are not posted individually.
Separate accounts in special amount columns are not posted individually.
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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.
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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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.
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.
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The steps for posting are to write the date, journal page number, amount, and balance.
The steps for posting are to write the date, journal page number, amount, and balance.
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A check mark in parentheses below a General Debit column total indicates that the total is not posted.
A check mark in parentheses below a General Debit column total indicates that the total is not posted.
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With the exception of the totals lines, the Post.Ref. column is completely filled in with either an account number or a check mark.
With the exception of the totals lines, the Post.Ref. column is completely filled in with either an account number or a check mark.
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What does the first digit in the account number 120 signify?
What does the first digit in the account number 120 signify?
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What are accounting personnel doing when accounts are arranged in the general ledger, account numbers are assigned, and the chart of accounts is kept up to date?
What are accounting personnel doing when accounts are arranged in the general ledger, account numbers are assigned, and the chart of accounts is kept up to date?
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What is the procedure for transferring information from a journal entry to a ledger account?
What is the procedure for transferring information from a journal entry to a ledger account?
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Study Notes
Account Management Basics
- A journal summarizes changes only in a single account, not in one place for all accounts.
- Account numbers are often assigned in increments of ten to facilitate the addition of new accounts.
- The proper term for arranging accounts in a general ledger and maintaining records is not posting.
Account Numbering
- Asset accounts like Cash and Supplies are commonly assigned account numbers such as 110 for Cash and 120 for Supplies.
- A collection of accounts is referred to as a ledger.
- The cash account is typically numbered 100, contrary to some claims.
Posting Procedure
- In posting, a journal page number is recorded in the ledger but not in the Post.Ref. column once the entry is finished.
- The account number is noted in the Post.Ref. column as the final step of posting.
- If both the previous balance and a new entry are debits, the resulting balance will be a debit.
Column Posting Mechanics
- Total columns in the General Debit column are not posted individually, only special amount column totals are.
- New expense accounts added amidst existing accounts receive a sequential account number, such as 515 when placed between 510 and 520.
Account Opening and Maintenance
- Opening an account requires more than just writing the account title and balance; additional steps are necessary.
- Special amount column entries are recorded collectively, not individually; only total amounts are posted.
Journal and Ledger Reference
- The Post.Ref. column should be filled after amount recording, not beforehand.
- The journals and ledgers' Post.Ref. columns serve multiple purposes, including keeping track of unposted entries.
Posting Procedures
- The steps for posting involve more than just the date, journal page number, amount, and balance.
- A check mark in parentheses beneath the General Debit column indicates that its total has not been posted.
- Aside from the totals line, the Post.Ref. column should include either an account number or a check mark, indicating all entries are accounted for.
File Maintenance
- The first digit in an account number can indicate the account division, such as ‘1’ for assets.
- Maintaining an updated chart of accounts along with account numbering reflects effective file maintenance by accounting personnel.
- Posting is defined as the procedure for transferring journal entries to ledger accounts.
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Prepare for your Accounting Chapter 4 test with this comprehensive study guide. It includes flashcards that cover key concepts, definitions, and true/false questions that are essential for mastering the material. Test your knowledge and understand the core principles of accounting.
