Chapter 7: Posting to the Ledger

Question 1

After journalizing, the next step in the accounting cycle is

a. preparation of T-accounts
b. preparation of adjusting entries
c. preparation of the unadjusted trial balance
d. posting to the ledger

Answer 1

d. posting to the ledger

Question 2

The term “posting” as used in accounting means

a. recording an accountable event in debit-credit format
b. transferring the debits and credits of journal entries from the journal to the affected accounts in the ledger
c. checking the equality of the monetary totals of debits and credits of accounts in the ledger
d. uploading photographs to the internet

Answer 2

b. transferring the debits and credits of journal entries from the journal to the affected accounts in the ledger

Question 3

Which of the following accounting terms connotes posting to the ledger

a. recording
b. legering
c. classifying
d. summarizing

Answer 3

c. classifying

Question 4

The collection of an account receivable is posted as

a. a debit to the accounts receivable ledger account
b. a credit to the cash ledger account
c. a credit to the accounts receivable ledger account
d. public, with tag to friends

Answer 4

a. a debit to the accounts receivable ledger account

Question 5

The journal entry to record the revenue earned from rendering of services on cash basis is posted to the ledger as

a. credit to cash
b. credit to service fees
c. debit to cash
d. a and b

Answer 5

d. a and b

Question 6

The report prepared to determine whether the totals of debits and credits in the accounts are equal is the

a. journal
b. ledger
c. trial balance
d. financial statements

Answer 6

c. trial balance

Question 7

The main purpose of preparing a trial balance is

a. to determine whether erroneous recordings have occurred
b. to determine whether the totals of debits and credits in the ledger are equal
c. to determine whether the debits and credits in the journal are equal
d. to bring the accounts into justice

Answer 7

b. to determine whether the totals of debits and credits in the ledger are equal

Question 8

Entity A recorded a 2,000 amount as 200. This error is called

a. transplacement error
b. transposition error
c. transgender error
d. translocation error

Answer 8

a. transplacement error

Question 9

Entity A recorded a 1,546 amount as 1,456. This error is called

a. transplacement error
b. transposition error
c. transgender error
d. translocation error

Answer 9

b. transposition error

Question 10

The heading of a trial balance does not necessarily indicate which of the following

a. name of the business
b. title of the report
c. date of the report
d. name of the business owner

Answer 10

d. name of the business owner

Question 11

Accounts appear on the trial balance in what order or sequence

a. assets, expenses, liabilities. equity, and income
b. assets, liabilities, equity, income and expenses
c. assets, liabilities, equity, expenses, and income
d. alphabetically

Answer 11

b. assets, liabilities, equity, income and expenses

Question 12

The amounts in the trial balance are derived directly from the balances in the

a. source documents
b. journal
c. ledger
d. accountant’s mind

Answer 12

c. ledger

Question 13

Which of the following is a correct sequence of the steps in the accounting cycle

a. journalizing, identifying and analyzing, trial balance, posting
b. posting, journalizing, identifying and analyzing, tria; balance
c. identifying and analyzing, journalizing, posting, trial balance
d. toes, head, shoulders and knees

Answer 13

c. identifying and analyzing, journalizing, posting, trial balance

Question 14

Accounts receivable is presented in the trial balance under the

a. debit column
b. credit column
c. tree
d. not presented

Answer 14

a. debit column

Question 15

Accumulated depreciation appears on the trial balance under

a. debit column
b. credit column
c. bridge
d. not presented

Answer 15

b. credit column