Accounting Chapter 4.1: Intro to Ledgers

Front

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

Back

False

Front

Account numbers may be assigned by 10s so that new accounts can be easily added.

Back

True

Front

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records is called posting.

Back

False

Front

If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120.

Back

True

Front

If a new account is located between accounts numbered 510 and 520, the new account number should be 515.

Back

True

Front

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

Back

True

Front

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.

Back

True

Front

The cash account is the first asset account and is numbered 100.

Back

False

Front

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

Back

False

Front

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

Back

False