Accounting chapter 4 true -false

Question 1

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.

Answer 1

true

Question 2

The asset division accounts for Delgado Web Services are numbered in the 200s.

Answer 2

false

Question 3

The cash account for Delgado Web Services is the first asset account and is numbered 110.

Answer 3

true

Question 4

The third division of Delgado Web Services chart of accounts is the owner’s equity division.

Answer 4

true

Question 5

The first digit of account numbers for accounts in the owner’s equity ledger division is 4.

Answer 5

false

Question 6

The last two digits in a 3-digit account number indicate the general ledger division of the account.

Answer 6

false

Question 7

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.

Answer 7

true

Question 8

Delgado Web Services arranges expense accounts in chronological order in its general ledger.

Answer 8

false

Question 9

The two steps for opening an account are writing the account title and recording the balance.

Answer 9

false

Question 10

Separate amounts in special amount columns are not posted individually.

Answer 10

true

Question 11

Separate amounts in general amount columns are not posted individually.

Answer 11

false

Question 12

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.

Answer 12

false

Question 13

A check mark in parentheses below a General Debit column total indicates that the total is not posted.

Answer 13

true

Question 14

The totals of general amount columns in a journal are not posted.

Answer 14

true

Question 15

With the exception of the totals lines, the Post. Ref. column is completely filled in with either an account number or a check mark.

Answer 15

true

Question 16

Errors discovered before entries are posted must be corrected with a correcting entry.

Answer 16

false

Question 17

If an error requires a correcting entry, a memorandum is prepared as the source document describing the correction to be made.

Answer 17

true

Question 18

If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash.

Answer 18

false

Question 19

If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account.

Answer 19

true

Question 20

All corrections for posting errors should be made in a way that leaves no question as to the correct amount.

Answer 20

true