Accounting-Chapter 11 Test Review

The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system.

• True

• False

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.

• True

• False

Accounts Payable is a single general ledger account that summarizes the total amount owed to all vendors.

• True

• False

An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.

• True

• False

The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger.

• True

• False

Daily general ledger account balances are necessary for a business.

• True

• False

The number of transactions determines how often to post to a general ledger.

• True

• False

When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected.

• True

• False

A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.

• True

• False

Each entry in the Accounts Payable columns of a cash payments journal affects the vendor named in the Account Title column.

• True

• False