chapter 7 accounting study guide

what is the purpose of posting?

to show changes that take place in accounts

the ledger account form in our text book uses a ___________ account form (zip delivery service)

four column

what are the steps for opening an account in ledger?

write the account name and number

how often posting occurs depends on the size of the business, the number of transactions, and whether posting is done manually or electronically (t or f)

true

how do you enter the date for the second subsequent ledger postings in an account?

just put the number of the date (not the month)

will every single amount posted either increase or decrease the balance of a ledger account?

yes

what would G7 in the posting reference column of a general ledger journal tell you?

general journal page 7

every journal entry requires a posting to at least ___ ledger accounts

2

what order do you list the accounts for a trial balance, and do you include accounts with zero balances?

order of the chart of accounts; yes

what do you do for an error when you discover it before posting?

single rule through the error and write correct info above it

what is the first step in locating a trial balance error

check for math errors

what is included in the first 3 lines of a trial balance form?

who (name of company), what (name of form - trial balance), when (date)

what goes in the description column of a ledger account when you are posting a correcting entry?

correcting entry

if you journalize a transaction on the 5th but post it on the 7th, which date is entered into the ledger?

5th because that’s when the transaction happened

at what point in the accounting cycle do you prepare a trial balance?

after completely posting the ledger

the type of error where you write and amount such as 200 as 20 or 2000 (skip but js in case)

slide error

an error discovered after posting has taken place requires this

correcting entry

transferring data from the journal to the ledger

posting

a periodic report prepared by business to test the equality of total debits and total credits in the ledger

trial balance

if you meant to write 27 but wrote 72

transposition error

the accounts used by a business and can be kept on pages or cards, which are kept together in a book or file

ledger

adding all the debit balances and all credit balances and then comparing the two total to see whether they are equal

proving the ledger

the accounting stationary/form used to record financial information about specific accounts

ledger account form

whether accounts are kept manually or electronically, the ledger is often called this

general ledger

what are the steps for posting a business transaction from the general journal to the general ledger?

date, write g#, enter debit or credit amount in the correct column, compute the new balance, write the ledger account # in the post ref column