Chapter 11 Review Game

Amounts recorded in general amount columns of a cash receipts journal are posted individually to the general ledger account named in the Account Title column. TRUE FALSE true 2

The account form for a vendor has a debit balance column because accounts payable is a liability and liabilities have normal debit balances. TRUE FALSE false 3

The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system. TRUE FALSE false 4

A general ledger sorts and summarizes all information affecting income statement and balance sheet accounts TRUE FALSE true 5

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

When using an Accounts Receivable ledger, the total amount due from all customers is summarized in a single general ledger account. TRUE FALSE true 7

An error in posting may cause income to be understated or overstated on the income statement. TRUE FALSE true 8

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

The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable ledger. TRUE FALSE true 10

Daily general ledger account balances are necessary for a business. TRUE FALSE false 11

The number of transactions determines how often to post to the general ledger. TRUE FALSE true 12

At the end of the week, the cash payments journal’s Accounts Payable Credit column total is posted to the controlling account. TRUE FALSE false 13

Each entry in the Accounts Payable columns of a cash payments journal affects the vendor named in the Account Title. TRUE FALSE true 14

A vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account. TRUE FALSE true 15

When the balance of a vendor account in the accounts payable ledger is changed, the balance of the controlling account is unaffected. TRUE FALSE false 16

Journal entries are sorted and summarized by transferring information to Accounts Payable Ledger Accounts Accounts Receivable Ledger Ledger Accounts All of these 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

An account in a general ledger that summarizes all accounts in a subsidiary ledger An expense account A controlling account A capital account None of these 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Has been posted Will be posted later Is not posted None of these A check mark in parentheses below the General Debit Column of a journal indicates that the journal entry Has been posted Will be posted later Is not posted None of these 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 The source doc. And the page number of the journal are written in the Post Ref. column of the account The credit amount is written in the debit column of the account Balance is written in the Item column 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

The total of the schedule of accounts receivable should equal The accounts receivable account balance in the general ledger The cash account The debit and credit proof None of these 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Schedule of A/R Schedule of A/P Trial Balance Cash Proof The listing of vendor accounts, account balances, and total amount due to all vendors is a Schedule of A/R Schedule of A/P Trial Balance Cash Proof 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19