Chapter 4 True of 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 TechKnow Consulting are numbered in the 100s.

Answer 2

True

Question 3

The cash account is the first asset account and is numbered 100.

Answer 3

False

Question 4

The second division of TechKnow Consulting’s chart of accounts is the owner’s equity division.

Answer 4

False

Question 5

The first digit of account numbers for accounts in the owner’s equity ledger division is 3.

Answer 5

True

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

TechKnow Consulting 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 posted individually.

Answer 10

False

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 special amount columns in a journal are not posted.

Answer 14

False

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