Vocabulary
The group of accounts used by a business.
General Ledger
How many steps are required to open an account in the general ledger with a zero balance?
Two, Write the account name and the account number.
True or False, All business must do their posting daily.
False
When an error in a journal entry is discovered after posting, one must do this to fix the error.
Correcting Entry
This type of error occurs when two digits within an amount are accidentally reversed, for example $325 is written $352.
Transposition Error
The process of transferring info from the general journal to individual general ledger accounts, the fourth step in the accounting cycle.
Posting
If an account has a zero balance, it is not necessary to list it on the trial balance. True or False?
False
The first step in posting is to write the _____ of the journal entry in the left column of the account debited.
Date
Determine whether the error will affect the totals of the trial balance: A $55 debit to the office supplies account was posted as a credit.
Yes
This type of error occurs when a decimal point is moved by mistake, for example, $1,800 is written $180.
Slide Error
A formal way to prove of the equality of total debits and credits, the fifth step in the accounting cycle.
Trial Balance
A dash across the debit balance column shows that an asset account has what kind of balance?
Zero balance
As in journalizing a transaction, posting to a ledger account is completed from ________ to ________.
Left to right
Do you need a correcting entry for this error: A $20 job completed for D. Tozer was recorded and posted to K. Ryan's account.
Yes
When the trial balance does not equal, what is the easiest step to try first?
Add the debit and credit columns again.
Adding all debit balances and all credit balances of ledger accounts and then comparing the two totals to see whether they are equal.
Proving the Ledger
If you were to post this transaction to an Accounts Receivable account, how would it affect the account: Sent an invoice for services completed, $440.
Debit Accounts Receivable, $440.
If the posting process is interrupted, perhaps by a phone call, the ______ ________ column signals the point at which posting stopped. Never write an account number here until after you have posted.
Posting Reference
Not all errors require a correcting entry, Does this entry require an entry: A $100 debit to cash in bank was posted as $10.
No
If all the general ledger accounts and their balances are included in the trial balance, one of the account balances could be recorded in the wrong _______.
Column
The accounting stationery used to record financial information about specific accounts.
Ledger Account Form
If you were to post this transaction to an Accounts Receivable Account, how would it affect the account: Received $100 on account.
Credit Accounts Receivable for $100.
Name the steps needed to open an account in the general ledger that has a balance.
1. Write the account name, 2. write the account number, 3. Enter the complete date (year month day), 4. write the word balance in the description column, 5. place a check mark in the post reference column to show the amount entered on this line is not being posted from a journal and 6. Enter the balance in the appropriate balance column.
Determine whether the error will affect the totals of the trial balance. A $300 check received as payment for services was journalized and posted to the capital account.
No
If the amount you are out of balance is evenly divisible by 9, you made what kind of error?
Transposition error