Accounting I Chapter 4

Cash is the first asset account and is numbered 100.

• True

• False

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

• True
• False

An account number in the journal's Post Ref columns shows

• the date of the entry
• the account to which an amount is posted
• that work on  that journal page is completed
• none of these

The procedure for transferring information from a journal entry to a ledger account is:

• file maintenance
• journalizing
• posting
• none of these

A group of accounts is called a ledger.

• True
• False

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

• True
• False

When the previous balance of an account is zero and a credit amount is posted to the account, the new balance is a:

• debit
• credit
• negative balance
  none of these

The first step in the posting procedure is writing the:

• entry amount in the debit or credit column of the account
• journal page number in the post. ref. column of the account
• entry date in the date column of the account
• none of these

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

• True
• False

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

• True
• False