Unit 4

Question 1

Vocab

A group of accounts

Answer 1

ledger

Question 2

Vocab

A ledger that contains all accounts needed to prepare financial statements

Answer 2

General ledger

Question 3

Vocab

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

Answer 3

file maintenance

Question 4

Vocab

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

Answer 4

opening an account

Question 5

Vocab

Transferring information from a journal entry to a ledger

Answer 5

posting

Question 6

Vocab

An additional journal entry made to correct an incorrect journal entry

Answer 6

correcting entry

Question 7

Vocab

The number assigned to an account

Answer 7

account number

Question 8

T or F

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

The asset division accounts for Delgado Web Services are numbered in the 200s.

Answer 9

False

Question 10

The cash account for Delgado Web Services is the first asset account and is numbered 110. (p. 94)

Answer 10

True

Question 11

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

Answer 11

True

Question 12

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

Answer 12

False

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

Delgado Web Services arranges expense accounts 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 not posted individually.

Answer 17

True

Question 18

Separate amounts in general amount columns are not posted individually.

Answer 18

False

Question 19

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

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 general amount columns in a journal are not posted.

Answer 21

True

Question 22

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

Errors discovered before entries are posted must be corrected with a correcting entry.

Answer 23

False

Question 24

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

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

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

All corrections for posting errors should be made in a way that leaves no question as to the correct amount.

Answer 27

True