Chapter 4

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

Answer 3

file maintenance

Question 4

Writing an account title and number on the heading of an account.

Answer 4

opening an account

Question 5

The number assigned to an account

Answer 5

account number

Question 6

Transferring information from a journal entry to a ledger account.

Answer 6

posting

Question 7

An additional journal entry made to correct an incorrect journal entry.

Answer 7

Correcting entry

Question 8

True or False: 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 8

True

Question 9

True or False: The asset division accounts for Delgado Web Services are numbered in the 200s

Answer 9

False

Question 10

True or False: The cash account for Delgado Web Services is the first asset account and is numbered 110

Answer 10

True

Question 11

True or False: The third division of Delgado Web Services chart of accounts is the owner’s equity division.

Answer 11

True

Question 12

True or False: The first digit of account numbers for accounts in the owner’s equity ledger division is 4.

Answer 12

False

Question 13

True or False: The last two digits in a 3-digit account number indicate the general ledger division of the account.

Answer 13

False

Question 14

True or False: 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

True or False: Delgado Web Services arranges expense accounts in chronological order in its general ledger.

Answer 15

False

Question 16

True or False: The two steps for opening an account are writing the account title and recording the balance.

Answer 16

False

Question 17

True or False: Separate amounts in special amount columns are not posted individually.

Answer 17

True

Question 18

True or False: Separate amounts in general amount columns are not posted individually.

Answer 18

False

Question 19

True or False: The only reason for the Post. Ref. columns of 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

True or False: A check mark in parentheses below a General Debit column total indicates that the total is not posted.

Answer 20

True

Question 21

True or False: The totals of general amount columns in a journal are not posted.

Answer 21

True

Question 22

True or False: With the exception of the totals lines, the Post. Ref. column is completely filled in with either an account number or a check mark.

Answer 22

True

Question 23

True or False: Errors discovered before entries are posted must be corrected with a correcting entry.

Answer 23

False

Question 24

True or False: If an error requires a correcting entry, a memorandum is prepared as the source document describing the correction to be made.

Answer 24

True

Question 25

True or False: If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.

Answer 25

False

Question 26

True or False: If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account.

Answer 26

True

Question 27

True or False: If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account.

Answer 27

True

Question 28

What are the Asset accounts?

Answer 28

Cash, Accounts Receivable, Supplies and, Prepaid Insurance

Question 29

What are the Liability accounts?

Answer 29

Accounts Payable

Question 30

What are the Owner's Equity accounts?

Answer 30

Capital and Drawing

Question 31

What are the Revenue accounts?

Answer 31

Sales

Question 32

What are the Expense accounts?

Answer 32

Accounts with 'expense' in the title

Question 33

What is the only account that you do not alphabetize? How do you organize it?

Answer 33

Assets (100) In order of importance Cash, Accounts Receivable, Supplies then, Prepaid Insurance.

Question 34

What is the 100's on the chart of accounts?

Answer 34

Assets

Question 35

What is the 200's on the chart of accounts?

Answer 35

Liabilities

Question 36

What is the 300's on the chart of accounts?

Answer 36

Owners Equity

Question 37

What is the 400's on the chart of accounts?

Answer 37

Revenue

Question 38

What is the 500's on the chart of accounts?

Answer 38

Expenses

Question 39

What are the Balance Sheet accounts (Left)?

Answer 39

The 100's, 200's and 300's | Assets, Liabilities and, Owner's Equity.

Question 40

What are the Income Statement Accounts (Right)?

Answer 40

The 400's and 500's | Revenue and Expenses