Accounting Practice: Journal Posting, Account Numbers, and Record Reconciliation

What does the first digit in the account number 520 indicate?

The account is in the expense division of the general ledger.

What are accounting personnel doing when they assign account numbers and keep the chart of accounts up to date?

They are doing file maintenance.

What is the procedure for transferring information from a journal entry to a ledger account called?

Posting.

What is the last step in the posting procedure?

Write the account number in the Post. Ref. column of the journal.

What is the second step in the posting procedure?

Write the journal page number in the Post. Ref. column of the account.

What does an account number in the journal's Post. Ref. column indicate?

It shows the account to which an amount is posted.

What should accounting personnel do if posting is interrupted?

Resume posting on the line with a blank Post. Ref. column in the journal.

What is the term for determining that the amount of cash agrees with the accounting records?

Proving cash.

What document describes the correction to be made when an error requires a correcting entry?

A memorandum.

How should accounts receivable, accounts payable, and expense accounts be arranged?

In alphabetic order (by last name for accounts receivable).