Chapter 11 Review

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

• True

• False

Accounts are arranged in alphabetical order within the subsidiary ledgers. (p. 299)

• True

• False

A change in the balance of a vendor account also changes the balance of the controlling account Accounts Payable. (p. 299)

• True

• False

The total amount owed to all vendors is summarized in a single general ledger account, Accounts Payable. (p. 299)

• True

• False

The number of entries that may be recorded on each ledger account form is limited to fifteen. (p. 300)

• True

• False

The amount on each line of a purchases journal is posted as a credit to a vendor account in the accounts payable ledger.

• True

• False

Posting frequently keeps each vendor account balance up to date. (p. 301)

• True

• False

Entries in a general journal may affect account balances in an accounts payable ledger.

• True

• False

A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger.

• True

• False

A schedule of accounts payable is prepared before all entries in a journal are posted.

• True

• False