Lesson 1
What is a group of accounts called?
A ledger
What is transferring information from a journal entry to a ledger account called?
Posting
What amounts are not to be posted individually on the general ledger?
Forwarded totals and special amount columns.
What is a correcting entry?
an entry used to correct an in correct journal entry.
The totals of the what are not posted because the amounts of these columns are posted individually?
General Debit and General Credit
What is ledger that contains all accounts needed to prepare financial statements is called?
A general ledger
True or False? Each separate amount in the General Debit and General Credit columns of a journal is posted to the account written in the Account Title column.
True
True of False? All of the separate amounts in the General Debit and General Credit amount columns are posted individually.
True
What is used as a source document for a correcting entry?
A memorandum
When is a correcting entry necessary?
When a transaction has been improperly journalized and posted to the ledger.
The name given to an account is known as what?
An account title
What does a blank in the post ref. column indicate?
That the line still needs to be completed.
Is a check mark placed in the Post Ref. column of the totals line?
no
What is the first line of a correcting entry? Putting the correct amount in the correct account or cancelling out the incorrect entry (by making an entry that cancels it out)?
Putting the correct amount in the correct account
Under what conditions will an account balance be a debit?
Whenever the debits in an account exceed the credits, the balance is a debit.
The chart of accounts only has some of the accounts. True of False?
False
These are advantages of what?
An entry in an account can be traced to its source in a journal.
An entry in a journal can be traced to where it was posted in an account.
If posting is interrupted, the accounting personnel can easily see which entries in the journal still need to be posted.
Numbers in the post ref. column of the journal
What is an example of a special amount column on the journal?
Cash Debit/Cash Credit
True or False? To correct an entry that is far back in the ledger, you erase the entry and right in the correct one.
False
Are the totals of the general Debit and general credit columns posted?
The totals of the General Debit and General Credit columns are not posted because each separate amount in either of these columns is posted individually.
What is writing an account's title and number on the heading of an account called?
Opening an account
If I make post an entry in which the Credit amount is $2,000, what is my new Credit Balance assuming that I already had a Debit balance of $200.
$1800
After posting the total of a column to the general ledger, you are to return to the journal and put the account number in parentheses under the total. Is the account number for the sales credit 110 or 410?
410
What is the first step in correcting an incorrect amount?
Draw a line through the incorrect amount.
Describe the two parts of an account number.
The first digit indicates in which general ledger division the account is located. The second and third digits indicate the location of the account within that division.