Accounting- Chapter 11

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

• True

• False

Daily general ledger account balances are necessary for a business.

• 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

At the end of the week, the cash payment journal's Account Payable Credit column total is posted to the controlling account.

• True

• False

The account form for a vendor has a Debit balance column because accounts payable is a liability and liabilities have a normal debit balance.

• True

• False

Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account named in the "Account Title" column.

• True

• False

When using an accounts receiv ledger, the total amount due from all customers is summarized in a single general ledger account.

• True

• False

An error in posting may cause income to be understated or overstated on the income statement.

• True

• False

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

• True

• False

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

• True

• False