Accounting - Analyzing Posting Procedures

The first digit in the account number 520 means that the account is in the…

Expense division of the general ledger

When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are…

Doing file maintanence

The procedure for transferring information from a journal entry to a ledger account is…

Posting

The last step in the posting procedure is to write the…

Account number in the Post. Ref. column of the journal

The second step in the posting procedure is to write the…

Journal page number in the Post. Ref. column of the journal

An account number in the journal’s Post. Ref. column shows…

The account to which an amount is posted

If posting is interrupted, the accounting personnel know to resume posting…

On the line with a blank Post. Ref column in the journal

Determining that the amount of cash agrees with the accounting records is…

Proving cash

If an error requires a correcting entry, the source document describing the correction to be made..

Is a memorandum

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

True

A journal shows in one place all the changes in a single account

False

The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure

True

The posting reference should always be recorded in the journal’s Post. Ref. column before amounts are recorded in the ledger

False

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

False

The procedure of arranging account in the general ledger, assigning account numbers, and keeping records current is known as file maintanence

True

The Cash account is the first asset account and is numbered 110

True

The steps for posting are to write the date, the journal page number, the amount, and the balance

False

If the payment for 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

False

If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit

True

A group of accounts is called a ledger

True

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

False

When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers

True

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

True

Errors discovered after an entry is posted may be corrected by ruling through the item

False