accounting chapter 4 test

A Group of accounts

ledger

a ledger that contains all accounts needed to prepare financial statements

general ledger

the number assigned to an account

accounting number

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

file maintenance

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

opening an account

transfering information from a journal entry to a ledger account

posting

a journal entry made to correct an error in a previous journal entry

correcting entry

Because an account form has collums for the debit and credit balance of an account, it is often reffered to as the balance-ruled account form

T

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

T

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

F

The second division of TechKnow Consulting’s chart of accounts is the owners equity division

F

The first digit of account numbers for accounts in the owners equity ledger division is 3

T

the last two digits in a 3- digit account number indicate the general ledger division of accounts

F

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

T

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

F

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

F

Seperate amounts in special amount collumns are posted individually

F

seperate amounts in general amount colums are not posted individually

F

the only reason for the post Ref collums of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interupted

F

A check mark in parentheses below a general debit collum total indicates that the total is not posted

T

the totals of special amount collums in a journal are not posted

F

with the exception of the total lines, the post Ref collum is completely filled in with either an account number or a check mark

T