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

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