Chapter 4 - Accounting I Review

A separate form for each account is used to summarize all the changes to a single account.

• True
• False

A group of accounts is called a 

• ledger
• group
• account summary
• chart of accounts

A chart of accounts is a __________.

• line graph showing increases and decrease of account balance in the past year
• list of the amounts on the balance sheet
• list of all the amounts on the income statement
• none of the answers are correct

All businesses in similar industries use the same chart of accounts.

• True
• False

When an account is no longer used, it is removed from the general ledger and the chart of accounts; the unused number cannot be reassigned.

• True
• False

The posting reference is always the last step in the posting procedure.

• True
• False

A withdrawal account has a normal debit balance.

• True
• False

Determining the amount of cash agrees with the accounting records is called 

• balancing the account
• verifying records
• proving cash
• ruling

A correcting entry is an additional journal entry to correct a transaction that was improperly journalized and posted to the ledger.

• True 
• False

The numbers in the Post. Ref. Column of the general ledger account and the journal serve which purpose?

• an entry in an account can be traced to its source in a journal
• an entry in a journal can be traced to where it was posted in an account
• if posting is interrupted, the accounting personnel can easily see which entries in the journal need to be posted
• all of the answers are correct