Accounting Ch. 11 Test Review – Flashcards
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True/False The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system.
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False
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True/False A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts.
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True
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True/False An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.
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True
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True/False Daily general ledger account balances are necessary for a business.
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False
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True/False 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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False
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True/False Each entry in the Accounts Payable columns of a cash payments journal affects the vendor named in the Account Title column.
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True
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True/False An error in posting may cause income to be understated or overstated on the income statement.
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True
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True/False Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account named in the Account Title column.
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True
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True/False Accounts Payable is a single general ledger account that summarizes the total amount owed to all vendors.
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True
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True/False 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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True
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True/False The number of transactions determines how often to post to a general ledger.
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True
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True/False A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account.
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True
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True/False At the end of the week, the cash payment journal's Accounts Payable Credit column total is posted to the controlling account.
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False
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True/False 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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True
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True/False The account form for a vendor has a Debit Balance column because accounts payable is a liability and liabilities have normal debit balances.
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False
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Journal entries are sorted and summarized by transferring information to a. accounts payable ledger accounts. b. accounts receivable ledger accounts. c. ledger accounts. d. all of these.
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c. ledger accounts.
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A check mark in parentheses below the General Debit column of a journal indicates that the total a. has been posted. b. will be posted later. c. is not posted. d. none of these.
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c. is not posted.
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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 these.
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a. the debit amount is written in the Debit column of the account.
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A listing of vendor accounts, account balances, and total amount due all vendors is a a. schedule of accounts receivable. b. schedule of accounts payable. c. trial balance. d. cash proof.
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b. schedule of accounts payable.
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An error in posting may cause a. income to be overstated or understated on the income statement. b. a business to pay too much to a vendor. c. cash on hand to be less than the balance in the cash account. d. all of these.
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d. all of these.
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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 these.
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a. the accounts receivable account balance in the general ledger.
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The Accounts Receivable Debit column total of the sales journal is 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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b. posted to the general ledger controlling account at the end of each month.
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When a credit is posted to the accounts payable ledger, a. the previous balance is added to the new amount posted in the Credit column. 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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a. the previous balance is added to the new amount posted in the Credit column.
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An account in a general ledger that summarizes all accounts in a subsidiary ledger is a. an expense account. b. a controlling account. c. a capital account. d. none of these.
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b. a controlling account.
