Chapter 4 test

Question 1

A group of accounts

Answer 1

ledger

Question 2

a ledger that contains all accounts needed to prepare financial statements

Answer 2

general ledger

Question 3

the number assigned to an account

Answer 3

account number

Question 4

the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

Answer 4

file maintenance

Question 5

writing an account title and number on the heading of an account

Answer 5

opening an account

Question 6

transferring information from a journal entry to a ledger account

Answer 6

posting

Question 7

a journal entry made to correct an error in a previous journal entry

Answer 7

correcting entry

Question 8

because an account form ha columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account

Answer 8

true

Question 9

the asset division accounts for TechKnow Consulting are numbered in the 100s

Answer 9

true

Question 10

the cash account is the first asset account and is numbered 100

Answer 10

false

Question 11

the second division of TechKnow Consulting’s chart of accounts is the owner’s equity division

Answer 11

false

Question 12

the first digit of account numbers for accounts in the owner’s equity ledger division is 3

Answer 12

true

Question 13

the last two digits in a 3-digit account number indicate the general ledger division of the account

Answer 13

false

Question 14

when adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515

Answer 14

true

Question 15

TechKnow Consulting arranges expense account in chronological order in its general ledger

Answer 15

false

Question 16

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

Answer 16

false

Question 17

separate amounts in special amount columns are posted individually

Answer 17

false

Question 18

separate amounts in general amount columns are not posted individually

Answer 18

false

Question 19

the only reason for Post. Ref. Columns or the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted

Answer 19

false

Question 20

a check mark in parentheses below a general debit column total indicates that the total is not posted

Answer 20

true

Question 21

the totals of special amount columns in a journal are not posted

Answer 21

false

Question 22

with the exception of the total lines, the Post. Ref. column is completely filled in with either an account number or a check mark

Answer 22

true

Question 23

Balance sheet (left)

Answer 23

assets, liabilities, owner’s equity

Question 24

income statement

Answer 24

revenue, expenses

Question 25

assets

Answer 25

100s

Question 26

liabilities

Answer 26

200s

Question 27

owner’s equity

Answer 27

300s

Question 28

revenue

Answer 28

400s

Question 29

expenses

Answer 29

500s

Question 30

cash

Answer 30

asset, 110

Question 31

accounts receivable

Answer 31

asset

Question 32

supplies

Answer 32

asset

Question 33

prepaid insurance

Answer 33

asset

Question 34

accounts payable

Answer 34

liability

Question 35

capital and drawing accounts

Answer 35

owner’s equity

Question 36

sales

Answer 36

revenue

Question 37

expense

Answer 37

expenses

Question 38

New Accounts

Answer 38

Account number(left side), account name(right side)