True/False
Indicate whether the sentence or statement is true
or false.
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1.
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A
journal shows in one place all the changes in a single account.
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2.
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A
chart of accounts is a list of account titles and numbers showing the location of each account in a
ledger.
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3.
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On a
chart of accounts, all asset and expense accounts are in the same division.
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4.
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Account numbers may be assigned by 10s so that new accounts can be added
easily.
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5.
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The
procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records
current is posting.
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6.
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If a
business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and
120.
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7.
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If a
new account is located between accounts numbered 210 and 220, the new account number should be
215.
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8.
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Posting is transferring information from a journal entry to a ledger
account.
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9.
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A
journal page number is written in the Post. Ref. column of an account to show that posting of the
entry is completed.
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10.
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The
account number is placed in the Post. Ref. column of the journal as the last step in the posting
procedure.
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11.
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If
the previous account balance and the current entry posted to an account are both debits, the new
account balance is a debit.
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12.
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The
column total of the General Debit column is posted.
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13.
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The
total of the General Credit column is not posted.
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14.
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A
check mark in parentheses placed below the General Debit column total indicates that posting of the
column total is completed.
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15.
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The
total of the Cash Debit column is not posted.
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16.
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The
total of the Cash Credit column is posted.
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17.
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The
total of the Sales Credit column is posted.
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18.
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Only
the column totals for special amount columns in a journal are posted.
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19.
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A
ledger is a group of accounts.
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20.
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A
ledger that contains all accounts needed to prepare financial statements is a general
ledger.
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21.
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At
the end of a year, accounting departments perform file maintenance by opening new files for the next
year's journals and ledgers.
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22.
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Opening an account refers to the procedure of writing an account title and number on
the heading of an account.
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23.
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Because an account form has columns for the debit and credit balance of an account, it
is often referred to as the balance-ruled account form.
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24.
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The
first asset account is numbered 100.
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25.
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The
second division in the chart of accounts is the owner's equity division.
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26.
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When
adding a new expense account between accounts numbered 510 and 520, the new account is assigned the
account number 515.
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27.
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The
two steps for opening an account are writing the account title and recording the
balance.
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28.
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Separate amounts in special amount columns are posted individually.
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29.
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Separate amounts in a Sales Credit column are not posted individually.
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30.
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Separate amounts in general amount columns are not posted individually.
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31.
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The
posting reference should always be recorded in the journal's Post. Ref. column before amounts are
recorded in the ledger.
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32.
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The
only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries
in the journal still need to be posted if posting is interrupted.
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33.
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The
steps for posting are to write the date, journal page number, amount, and balance.
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34.
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A
check mark in parentheses below a General Debit column total indicates that the total is not
posted.
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35.
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With
the exception of the totals lines, the Post. Ref. Column is completely filled in with either an
account number or a check mark.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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36.
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The
first digit in the account number 120 means that the account is in the ____ division of the general
ledger. a. | expense | c. | liability | b. | revenue | d. | asset | | | | |
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37.
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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 | c. | journalizing | b. | doing file maintenance | d. | none of the above | | | | |
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38.
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A new
account to be added between accounts 530 and 540 will be assigned the number ____.
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39.
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A
business has the following expense accounts: 510, Advertising Expense; 520, Miscellaneous Expense;
530, Repair Expense. A new account titled Utilities Expense is added. The account number for this new
account is ____.
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40.
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The
procedure for transferring information from a journal entry to a ledger account is
____. a. | posting | c. | file
maintenance | b. | journalizing | d. | none of the above | | | | |
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41.
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The
first step in the posting procedure is writing ____. a. | the entry date
in the Date column of the account | b. | the journal page number in the Post. Ref. column of the
account | c. | the entry amount in the Debit or Credit column of the
account | d. | none of the above | | |
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42.
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The
last step in the posting procedure is writing ____. a. | the entry date
in the Date column of the account | b. | the journal page number in the Post. Ref. column of the
account | c. | the entry amount in the Debit or Credit column of the
account | d. | none of the above | | |
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43.
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An
account number in the journal's Post. Ref. column shows ____. a. | the account to
which an amount is posted | b. | the date of the entry | c. | that work on
that journal page is completed | d. | none of the above | | |
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44.
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Posting references in a journal are ____. a. | not
necessary | b. | the first item recorded when posting | c. | always placed in
an account's Post. Ref. column | d. | none of the above | | |
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45.
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If
posting is interrupted, the accounting personnel know to resume posting ____. a. | on the line with
a blank Post. Ref. column in the journal | b. | at the beginning of the journal page | c. | the next
day | d. | all of the
above | | |
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46.
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Separate amounts in the General Debit and General Credit amount columns of a journal
are ____. a. | rounded to the
nearest dollar | c. | posted
infrequently | b. | posted individually | d. | none of the above | | | | |
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47.
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Check
marks are placed in parentheses below the General Debit and Credit column totals to show that
____. a. | posting of the
totals has been completed | b. | the totals are not posted | c. | the column
totals are equal | d. | all of the above | | |
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48.
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If
all separate amounts on a journal line are recorded in special amount columns, ____. a. | all amounts are
posted individually | b. | only one of the amounts is posted
individually | c. | neither amount is posted individually | d. | all of the
above | | |
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49.
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Separate amounts in the Sales Credit column of a journal are ____. a. | rounded to the
nearest dollar | c. | posted
frequently | b. | posted individually | d. | none of the above | | | | |
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50.
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Separate amounts in the Cash Debit column of a journal are ____. a. | posted
frequently | c. | sometimes posted
individually | b. | not posted | d. | all of the above | | | | |
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