Accounting 1
The number assigned to an account.
Account Number
A group of accounts.
Ledger
A ledger that contains all accounts needed to prepare financial statements
General Ledger (GL)
Writing an account title and number on the heading of an account.
Opening an Account.
Transferring information from a journal entry to a ledger account.
Posting
When creating a new asset account, what number would the new three digit account number begin with?
1
In the chart of accounts, which asset account would be listed first, Accounts Receivable - XYZ, Company or Supplies.
Accounts Receivable - XYZ, Company.
Assets are listed in order of liquidity.
An additional journal entry made to correct an incorrect journal entry.
Correcting Entry
Expense accounts are listed in what type of order in a chart of accounts?
Alphabetical Order
What is the name of the 400 division in the chart of accounts?
Revenue
Determining that the amount of cash agrees with the balance of the Cash Account in the accounting records.
Proving Cash
What is the third division of the chart of accounts?
Owner's Equity Division
When making a correcting entry for an error, what source document is prepared describing the correction to be made?
Memorandum (Memo)
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
File Maintenance
What would be a possible account number for the new account - Accounts Payable - DHS.
Anything in the 200's
210 220 230 240 250 260 270 280 290
If the previous account balance is a debit and the current entry posted to the account is a debit, the current account balance will be a?
A debit balance.
What is used to summarize in one place all the changes to a single account? (Hint: Each account in the general ledger has one.)
An Account Form
When adding a new expense account number between 510 and 520, the new account would be assigned what account number?
515
If a cash payment for rent was posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to what account?
Miscellaneous Expense
What is the major benefit of using the general ledger over the journal to track account activity?
General Ledger provides an up to date account balance, Journal does not.
After a journal entry has posted, what column of the journal is completely filled in with account numbers?
Post. Ref. Column
If an account has a $600 credit balance and the current entry posting is a $250 debit, what will the new account balance be?
$350 credit balance
Explain how you can tell whether or not the journal entries in the journal have posted to the general ledger.
The Post. Ref. column will be completed.
List the 5 steps in the posting process.
1. Write the Date
2. Write the Journal Page #
3. Write debit/credit amount
4. Write new account balance
5. Return to journal and write account number in Post. Ref. Column
List the five divisions of the chart of accounts.
Assets
Liabilities
Owner's Equity
Revenue
Expenses