Chapter 4- True and False

Question 1

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

Answer 1

true

Question 2

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

Answer 2

true

Question 3

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

Answer 3

false

Question 4

the second division of techknow consulting’s chart of accounts is the owner’s equity division

Answer 4

false

Question 5

the 1st digit of account numbers for accounts in the Owner’s equity ledger division is 3

Answer 5

true

Question 6

the last 2 digits in a 3 digit account number indicate the general ledger division of the account

Answer 6

false

Question 7

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

Answer 7

true

Question 8

techknow consulting arranges expense accounts in chronological order in its general ledger

Answer 8

false

Question 9

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

Answer 9

false

Question 10

posting sorts journal entries so that all debits and credits affecting each account are brought together in one place.

Answer 10

true

Question 11

Each amount in the Debit and Credit solums of a general journal is posted to the account written in the Account Title Column

Answer 11

true

Question 12

the only reason for the Post. REf. column of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted.

Answer 12

false

Question 13

A blank in the Post reference column of the journal indicates that posting for that line still needs to be complete.

Answer 13

true

Question 14

recording the posting reference is always the last step in the posting procedure

Answer 14

true

Question 15

The first step to post an amount form the Credit column is to write the date in the Date column of the account

Answer 15

true

Question 16

Whenever the credits in an account exceed the debits, the balance is a credit.

Answer 16

true

Question 17

cash can be proved at any time

Answer 17

true

Question 18

If the cash balance in the checkbook equals the cash balance in the cash account, cash is proved

Answer 18

true

Question 19

Journal errors discovered before entries are posted are corrected by first preparing a memorandum describing the correction to be made

Answer 19

false

Question 20

When making a correcting entry, the same four steps are followed as when making any journal entry.

Answer 20

true