accounting chapter 11 – test review
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Accounting Chapter 11 – Test Review. A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts. The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system. - PowerPoint PPT PresentationTRANSCRIPT
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AccountingChapter 11 – Test Review
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TRUE or FALSE?TRUE or FALSE?A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts
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TRUE or FALSE?TRUE or 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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TRUE or FALSE?TRUE or FALSE?A vendor account is opened by writing the vendor name and the vendor number on the heading of the ledger account.
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TRUE or FALSE?TRUE or 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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TRUE or FALSE?TRUE or FALSE?Accounts Payable is a single general ledger account that summarizes the total amount owed to all vendors.
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TRUE or FALSE?TRUE or FALSE?Daily general ledger account balances are necessary for a business.
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TRUE or FALSE?TRUE or FALSE?At the end of the week, the cash payments journal’s Accounts Payable Credit column total is posted to the controlling account.
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TRUE or FALSE?TRUE or FALSE?An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.
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TRUE or FALSE?TRUE or FALSE?Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account names in the Account Title column.
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TRUE or FALSE?TRUE or FALSE?An error in posting may cause income to be understated or overstated on the income statement.
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TRUE or FALSE?TRUE or 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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TRUE or FALSE?TRUE or 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 or FALSE?TRUE or FALSE?The number of transactions determines how often to post to a general ledger.
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TRUE or FALSE?TRUE or 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 or FALSE?TRUE or 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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A.
B.
C.
D.
E.
An error in posting may cause
All of these
Cash on hand to be less than the balance in the cash account.
A business to pay too much to a vendor
Income to be overstated or understated on the income statementl
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An account in a general ledger that summarizes all accounts in a subsidiary ledger is:
A controlling account
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When a credit is posted to the accounts payable ledgerThe previous balance is added to the new
amount posted in the Credit column
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Journal entries are sorted and summarized by transferring information to
Ledger accounts
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The Accounts Receivable Debit column total of the sales journal is
Posted to the general ledger controlling account at the end of each month
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The total of the schedule of accounts receivable should equal
The accounts receivable account balance in the general ledger
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A check mark in parentheses below the General Debit column of a journal indicates that the total
Is not posted
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A listing of vendor accounts, account balances, and total amount due all vendors is a
Schedule of accounts payable
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When a debit is posted to the accounts payable ledger
The debit amount is written in the Debit column of the account.