Chapter 5

59 cards

Chart of Accounts

Created Dec 7, 2006
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	Side A	Side B
1	Define account number	The number assigned to an account.
2	Define correcting entry	A journal entry made to correct an error in the ledger.
3	Define file maintenance	The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping...
4	Define general ledger	A ledger that contains all accounts needed to prepare financial statements.
5	Define ledger	A group of accounts.
6	Define opening an account	Writing an account title and number on the heading of an account.
7	Define posting	Transferring information from a journal entry to a ledger account.
8	Define proving cash	Determining that the amount of cash agrees with the balance of the cash account in the accounting...
9	T/F Because an account form has columns for the debit and credit balance of an account, it...	True
10	T/F The asset division accounts for Encore Music are numbered in the 100s.	True
11	T/F The cash account is the first asset account and is numbered 110.	True
12	T/F The second division of Encore Music's chart of accounts is the owner's equity division.	False
13	T/F The first digit of account numbers for accounts in the owner's equity ledger division...	True
14	T/F The last two digits in a 3-digit account number indicate the general ledger division of...	False
15	T/F When adding a new expense account between accounts numbered 510 and 520, the new account...	True
16	T/F Encore Music arranges expense accounts in chronological order in its general ledger.	False
17	T/F The two steps for opening an account are writing the account title and recording the...	False
18	T/F Each amount in the Debit and Credit columns in a general journal is posted to the account...	True
19	T/F The posting reference should always be recorded in the journal's Post. Ref. column before...	False
20	T/F The only reason for the Post. Ref. columns of the journal and general ledger is to indicate...	False
21	T/F The steps for posting are to write the date, journal page number, amount, and balance.	False
22	T/F If the previous account balance and the current entry posted to an account are both debits,...	True
23	T/F When all posting is complete, the journal's Post. Ref. column is completely filled.	True
24	T/F Cash is proved by comparing the cash balance shown in the checkbook with th ecash balance...	True
25	Normal balance of Cash	Debit
26	Normal balance of owner's capital account.	Credit
27	Account balance column in which the account balance is recorded when the only entry is a credit.	Credit
28	Balance column in the capital account after an intial investment is posted.	Credit
29	Normal balance of Supplies.	Debit
30	Column in the accounts payable account in which an entry for supplies bought on account is...	Credit
31	Account balance column in which the new account balance is recorded when the previous balance...	Debit
32	Normal balance of Sales	Credit
33	Normal balance of Rent Expense	Debit
34	Balance column in the cash account which is compared with the checkbook to prove cash.	Debit
35	Account numbers may be assigned by 10s so that new accounts can be easily added.	True
36	T/F A journal shows in one place all the changes in a single account.	False
37	T/F The procedure of arranging accounts in a general ledger, assigning account numbers, and...	False
38	T/F If a business has only two asset accounts, Cash and Supplies, the two accounts are numbered...	True
39	T/F If a new account is located between accounts numbered 510 and 520, the new account number...	True
40	T/F A journal page number is written in the Post. Ref. column of an account to show that posting...	False
41	T/F The account number is placed in the Post. Ref. column of the journal as the last step...	True
42	T/F If the previous account balance and the current entry posted to an account are both debits,...	True
43	T/F The Cash account is the first asset account and is numbered 100.	False
44	T/F When adding a new expense account between accounts numbered 510 and 520, the new account...	True
45	T/F The two steps for opening an account are writing the account title and recording the balance.	False
46	T/F The posting reference should always be recorded in the journal's Post. Ref. column before...	False
47	T/F The only reason for the Post. Ref. columns of the journal and general ledger is to indicate...	False
48	T/F When all posting is complete, the journal's Post. Ref. column is completely filled.	True
49	T/F The first digit in the account number 120 means that the account is in the liability division...	False
50	T/F When accounts are arranged in a general ledger, account numbers are assigned, and the...	True
51	T/F The procedure for transferring information from a journal entry to a ledger account is...	False
52	T/F The first step in the posting procedure is writing the journal page number in the Post....	False
53	T/F The last step in the posting procedure is writing the entry amount in the Debit or Credit...	False
54	T/F An account number in the journal's Post. Ref. column shows the account to which an amount...	True
55	T/F Posting references in a journal are not necessary.	False
56	T/F If posting is interrupted, the accounting personnel know to resume posting the next day.	False
57	T/F When the previous balance of an account is zero and a credit amount is posted to the account,...	True
58	T/F Determining that the amount of cash agrees with the accounting records is proving cash.	True
59	T/F Accounting ROCKS!!!	Of course it does....