Transcript Ch_4_Accounting_Review

Accounting Review
Chapter 4
The first digit in the account number 120
means that the account is in the
A. Expense division of the general ledger
B. Asset division of the general ledger
C. Liability division of the general ledger
D. Revenue division of the general ledger
E. None of the above
A journal shows in one place all the
change in a single account.
Separate amounts in special amount
columns are posted individually
Account numbers may be assigned
by the 10s so that new accounts can
be added easily
The first step in the posting procedure is
writing the
A. Entry date in the Date column of the account
B. Journal page number in the Post Ref. column of the account
C. Entry amount in the Debit or Credit column of the account
D. None of the above
E. All of the above
The procedure for transferring information from
a journal entry to a ledger account is
A. posting
B. Doing file maintenance
C. journalizing
D. posting
E. All of the above
Only the column totals for special
amount columns in a journal are
posted
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
A. posting
B. Doing file maintenance
C. journalizing
D. posting
E. All of the above
The posting reference should always be
recorded in the journal’s Post. Ref. column
before amounts are recorded in the ledger.
The cash account is the first asset
account and is numbered 100
The last step in the posting procedure is
writing the
A. Entry date in the Date column of the account
B. Journal page number in the Post Ref. column of the account
C. Entry amount in the Debit or Credit column of the account
D. None of the above
E. All of the above
A group of account is called a ledger.
Posting references in a journal are
A. Not necessary
B. The first item recorded when posting
C. Always place in an account’s Post. Ref. Column
D. None of the these
WHY IS THE ANSWER “D”?
YOU DO NOT ALWAYS PUT A NUMBER IN THE Post. Ref.
box. Special amount columns get a

The steps for posting are to write the
date, journal page number, amount,
and the balance.
If the previous account balance and the current
entry posted to an account are both debits, the
new account balance is a debit.
Separate amounts in the Sales Credit
column of a journal are
A. Rounded to the nearest dollar
B. Posted individually
C. Posted frequently
D. None of these
TIE BREAKER QUESTIONS
THESE ARE FROM ANY OF THE 3
PREVIOUS CHAPTERS
When cash is received on account,
the amount is recorded in the
A. General Debit, Cash Credit
B.A/R Debit, Cash Credit
C. Sales Credit, Cash Debit
D. Cash Debit, General Credit
E. None of the above
How many amount columns are
there? What are the names?
General Debit, General
Credit, Sales Credit, Cash
Debit, Cash Credit
Information for each transaction
recorded in a journal
Organized summaries of a
business’s financial activities
Sale on Account
Accounting System
Account Balance
Accounting Records
All of the above
The use of ethics in making
business decisions is called
A. Business ethics
B. Accounting
C. Transaction
D. Withdrawals
E. All of the above