Chapter 7

Question 0

If your number has been recorded incorrectly in a ledger in the air has been discovered immediately the correction should be made by doing

Answer 0

Stroking out the error and entering the correct number

Question 1

The final step in the posting process is

Answer 1

Recording the account number in the journal posting reference column

Question 2

Why does cross-referencing help in the accounting process

Answer 2

Entries in the journal can be traced to the account so they have been posted. Entries in ledger accounts can be traced back to general journal and finally the accountant knows where to resume posting if the process is been interrupted

Question 3

True or false in a larger transferring information from the bottom of one page to the top of the next is called forwarding

Answer 3

True

Question 4

True or false a correcting journal entry cancels the effect of an earlier error

Answer 4

True

Question 5

True or false a blank entry under the PR column on the general journal page indicates that the transaction is not yet been posted

Answer 5

True

Question 6

True or false errors in the journal and ledger are erased and then corrected

Answer 6

False

Question 7

True or false when the debit and credit totals on a trial balance differ by a multiple of 10 it is usually due to an error in addition

Answer 7

True

Question 8

True or false a child ounce difference of 270 could be due to a transposition error

Answer 8

True

Question 9

True or false the particulars column is used for the explanation of each transaction in the ledger

Answer 9

False