Accounting Chapter 11 – Test Review

1. AccountingChapter 11 – Test Review

2. A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts

3. The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system.

4. A vendor account is opened by writing the vendor name and the vendor number on the heading of the ledger account.

5. The account form for a vendor has a Debit Balance column because accounts payable is a liability and liabilities have normal debit balances

6. Accounts Payable is a single general ledger account that summarizes the total amount owed to all vendors.

7. Daily general ledger account balances are necessary for a business.

8. At the end of the week, the cash payments journal’s Accounts Payable Credit column total is posted to the controlling account.

9. An account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account.

10. 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.

11. An error in posting may cause income to be understated or overstated on the income statement.

12. When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account is unaffected.

13. When using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account.

14. The number of transactions determines how often to post to a general ledger.

15. The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger.

16. Each entry in the Accounts Payable columns of a cash payments journal affects the vendor named in the Account Title column.

17. 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

18. An account in a general ledger that summarizes all accounts in a subsidiary ledger is: A controlling account

19. When a credit is posted to the accounts payable ledger The previous balance is added to the new amount posted in the Credit column

20. Journal entries are sorted and summarized by transferring information to Ledger accounts

21. The Accounts Receivable Debit column total of the sales journal is Posted to the general ledger controlling account at the end of each month

22. The total of the schedule of accounts receivable should equal The accounts receivable account balance in the general ledger

23. A check mark in parentheses below the General Debit column of a journal indicates that the total Is not posted

24. A listing of vendor accounts, account balances, and total amount due all vendors is a Schedule of accounts payable

25. When a debit is posted to the accounts payable ledger The debit amount is written in the Debit column of the account.