True/False Indicate whether the
statement is true or false.
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1.
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A business's size, number of transactions, and type of transactions
determine the number of ledgers used in an accounting system.
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2.
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When the balance of a vendor account in an accounts payable ledger is changed,
the balance of the controlling account is unaffected.
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3.
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The heading of the balance column of an account in the accounts payable ledger
is titled Debit Balance.
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4.
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The amounts on each line of a purchases journal are posted to vendor accounts in
the accounts payable ledger.
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5.
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The total amount of the purchases journal is posted to the purchases and
accounts receivable accounts.
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6.
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Each amount in the general columns of a cash payments journal is posted to a
general ledger account.
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7.
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The totals of the general columns of the cash payments journal are
posted.
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8.
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A schedule of accounts payable is prepared before all journal entries have been
posted.
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9.
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The total of all customer account balances in the accounts receivable ledger
equals the balance of the general ledger controlling account Accounts Payable.
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10.
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Entries in a sales journal affect account balances in both the accounts
receivable ledger and the general ledger.
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11.
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Each amount in the sales journal's Accounts Receivable Debit column is
posted to the accounts receivable ledger.
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12.
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Entries in a cash receipts journal affect account balances in the accounts
payable ledger and the general ledger.
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13.
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Each entry in the Accounts Receivable Credit column of the cash receipts journal
affects the customer named in the Account Title column.
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14.
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Each amount in the General columns of a cash receipts journal is posted to a
general ledger account.
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15.
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A listing of customer accounts, account balances, and total amount due from all
customers is a schedule of accounts receivable.
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16.
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Items affecting customer or vendor accounts are posted periodically during the
month.
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17.
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A general ledger sorts and summarizes all information affecting income statement
and balance sheet accounts.
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18.
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Accounts Payable is a single general ledger account that summarizes the total
amount owed to all vendors.
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19.
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An account in a general ledger that summarizes all accounts in a subsidiary
ledger is a controlling account.
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20.
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The balance of the controlling account Accounts Payable equals the total of all
vendor account balances in the accounts payable subsidiary ledger.
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21.
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Balances of general ledger accounts are usually needed only when financial
statements are prepared.
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22.
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The number of transactions determines how often to post to a general
ledger.
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23.
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A vendor account is opened by writing the vendor name and vendor number on the
heading of the ledger account.
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24.
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When using an accounts receivable ledger, the total amount due from all
customers is summarized in a single general ledger account.
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25.
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The account form for a vendor has a Credit Balance column because accounts
payable are liabilities and liabilities have normal credit balances.
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26.
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Errors made in recording amounts in subsidiary ledgers always affect the general
ledger controlling account.
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27.
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The sales journal should be posted before the remaining journals are
posted.
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28.
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The last journal to be posted should be the general journal.
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29.
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The total amount of the purchases journal is posted to two general ledger
accounts, Purchases and Accounts Payable.
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30.
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Procedures for opening customer accounts are completely different from those
used for opening vendor accounts.
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Multiple Choice Identify the
choice that best completes the statement or answers the question.
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31.
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The ledger that contains all accounts needed to prepare financial statements is
the ____.
a. | accounts payable ledger | c. | general ledger | b. | accounts receivable
ledger | d. | subsidiary
ledger |
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32.
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A ledger that is summarized in a single general ledger account is a ____.
a. | ledger | c. | secondary ledger | b. | controlling ledger | d. | subsidiary
ledger |
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33.
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A subsidiary ledger containing only accounts for vendors from whom items are
purchased or bought on account is ____.
a. | an accounts payable ledger | c. | a general
ledger | b. | an accounts receivable ledger | d. | none of the
above |
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34.
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An account in a general ledger that summarizes all accounts in a subsidiary
ledger is ____.
a. | an expense account | c. | a controlling account | b. | a contra
account | d. | a capital
account |
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35.
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Each account in a subsidiary ledger has ____.
a. | two amount columns | c. | four amount columns | b. | three amount columns | d. | none of the
above |
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36.
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The amount on each line of a purchases journal is posted as a ____.
a. | debit to an account in the accounts payable ledger | b. | debit to an account
in the accounts receivable ledger | c. | credit to an account in the accounts payable
ledger | d. | credit to an account in the accounts receivable
ledger |
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37.
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Each entry in the purchases journal is an amount that ____.
a. | is to be paid to a vendor | c. | is to be collected from a
customer | b. | has been paid to a vendor | d. | none of the above |
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38.
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Each entry in the purchases journal is ____.
a. | posted daily | c. | posted at the end of a month | b. | posted
often | d. | none of the
above |
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39.
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The total amount of the purchases journal is posted to the general ledger
account(s) ____.
a. | Purchases | c. | Purchases and Accounts Payable | b. | Accounts
Payable | d. | none of the
above |
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40.
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The totals of the General columns of the cash payments journal are posted to
____.
a. | the accounts payable ledger | c. | the general
ledger | b. | the accounts receivable ledger | d. | none of the
above |
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41.
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To indicate that column totals are not to be posted, ____.
a. | a check mark is placed in parentheses under the total | b. | a check mark is
placed in the Post. Ref. column of the journal on the total line | c. | nothing is placed
under the total | d. | an account number is placed in the Post. Ref. column of the
journal |
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42.
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A vendor number is written in the Post. Ref. column of the journal as the last
posting step to ____.
a. | identify the vendor | b. | start a new journal page | c. | show that posting of
this line to the accounts payable ledger is complete | d. | show the general ledger account to which the
total was posted |
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43.
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When a customer account balance is changed, ____.
a. | the total of all account balances will be less than the balance of the controlling
account | b. | all vendor numbers will change | c. | the balance of the controlling account Accounts
Receivable is also changed | d. | none of the
above |
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44.
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To open a new customer account, ____.
a. | the customer name is obtained from the first invoice prepared | b. | the customer number
is assigned | c. | the customer name and number are written on the account form | d. | all of the
above |
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45.
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When a credit is posted to the accounts receivable ledger, ____.
a. | the new amount posted in the Credit column is subtracted from the previous
balance | b. | the source document number and page number of the journal are written in the Post.
Ref. column of the account | c. | the credit amount is written in the Debit
column of the account | d. | Balance is written in the Item
column |
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46.
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The special amount column totals of the cash receipts journal are ____.
a. | posted monthly to a customer account | b. | posted to the general ledger controlling
account at the end of each month | c. | not posted | d. | posted
often |
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47.
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When posting the Accounts Receivable Credit column total of the cash receipts
journal, return to the journal and write ____.
a. | the account number in the Post. Ref. column | b. | a check mark under
the column total | c. | the account number under the column total in parentheses | d. | none of the
above |
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48.
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A listing of customer accounts, account balances, and total amount due from all
customers is a ____.
a. | schedule of accounts payable | c. | subsidiary
ledger | b. | schedule of accounts receivable | d. | controlling
list |
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49.
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A schedule of accounts receivable is prepared ____.
a. | before all current entries are posted | b. | after all current entries are
posted | c. | before the special column totals are posted | d. | at the beginning of
the month |
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50.
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A general ledger sorts and summarizes all information affecting ____.
a. | income statement and balance sheet accounts | b. | accounts receivable
accounts | c. | accounts payable accounts | d. | none of the
above |
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51.
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Daily general ledger account balances are ____.
a. | usually not necessary | b. | necessary to do monthly financial
statements | c. | posted to the accounts receivable ledger daily | d. | needed if the dollar
amounts are large |
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52.
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Information to be recorded in the accounts payable ledger is ____.
a. | the date and posting reference information | b. | a debit or credit
amount | c. | the new account balance | d. | all of the
above |
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53.
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When a debit is posted to the accounts payable ledger, ____.
a. | the debit amount is written in the Debit column of the account | b. | the cash account
increases | c. | the controlling account is increased by the entry | d. | all of the
above |
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54.
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When opening a new page in an accounts receivable ledger, ____.
a. | Balance is written in the Item column | b. | the Item column is left
blank | c. | a number is written in the Post. Ref. column | d. | none of the
above |
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55.
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The total of the schedule of accounts receivable should equal ____.
a. | the accounts receivable account balance in the general ledger | b. | the cash
account | c. | the debit and credit proof | d. | none of the
above |
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