ACCOUNTING CHAPTER 7 TEST True/False Indicate whether the statement is true or false. ____
1. The purpose of posting is to show the changes that take place in the business's accounts as a result of financial transactions.
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2. Opening an account in a ledger involves writing the account title and the account number on the account form.
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3. How often posting occurs depends on the size of the business, the number of transactions, and whether posting is done manually or electronically.
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4. The easiest way to post is from left to right in a ledger account because there is less chance of omitting data.
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5. Every amount posted will either increase or decrease the balance of a ledger account.
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6. The notation "G3" in the Posting Reference column of a ledger account indicates the data was posted from general journal page 3.
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7. Every journal entry requires a posting to at least two ledger accounts.
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8. A credit posting to the Office Equipment account will result in an increase to that account.
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9. In the preparation of a trial balance, all accounts are listed in the order in which they appear on the chart of accounts, including those accounts with a zero balance.
____ 10. An error discovered before posting is usually corrected with a journal entry. ____ 11. To locate a trial balance error, the first step is to check the postings from the journal to the individual ledger accounts. ____ 12. When posting a correcting entry, the phrase "correcting entry" is usually written in the Explanation column of the ledger account. ____ 13. A trial balance is prepared after posting is completed. Matching Match each item with the correct statement below. a. correcting entry f. b. general ledger g. c. ledger h. d. ledger account form i. e. posting ____ ____ ____ ____
14. 15. 16. 17.
____ 18. ____ 19. ____ 20. ____ 21. ____ 22.
proving the ledger slide transposition error trial balance
If you were to write $190 as either $19 or $1,900, this mistake would be called a(n) ____. Errors discovered after posting has taken place require a(n) ____. Transferring data from the journal to the ledger is called ____. A periodic report prepared by a business to test the equality of total debits and total credits in the ledger is called a(n) ____. If you meant to write $27 but wrote $72, this mistake is called a(n) ____. The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n) ____. Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called ____. The accounting stationery used to record financial information about specific accounts is a(n) ____. Whether accounts are kept manually in a special file or electronically on magnetic disks or tapes, the ledger is often called a(n) ____.
Problem 23. Shown below are the steps used in posting a business transaction from the journal to the general ledger accounts. Renumber these steps in their proper order, using 1 for the first step and 5 for the last step. 1. 2. 3. 4. 5.
Write G for general journal and the journal page number in the Posting Reference column of the ledger account. Write the ledger account number in the Posting Reference column of the journal. Compute and record the new account balance. Write the date of the journal entry in the Date column of the ledger account. Enter the debit or credit amount of the transaction in the appropriate column of the ledger account.
24. Shown below are the accounts for Norris Billing Services. Prepare a trial balance as of December 31 of the current year. Cash in Bank Accounts Receivable—Aaronson's Computer Equipment Accounts Payable-Modern Office Equipment Elena Norris, Capital Elena Norris, Withdrawals Income Summary Professional Fees Advertising Expense Rent Expense Supplies Expense Utilities Expense
$3,340.00 715.00 4,500.00 920.00 6,865.00 550.00 — 2,300.00 90.00 600.00 150.00 140.00
ACCOUNTING CHAPTER 7 TEST Answer Section TRUE/FALSE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS:
T T T T T T T F T F F T T
PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS:
1 1 1 1 1 1 1 1 1 1 1 1 1
NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT:
NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A.
G A E I H C F D B
PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS:
1 1 1 1 1 1 1 1 1
NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT: NAT:
NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A. NBEA I.A.
MATCHING 14. 15. 16. 17. 18. 19. 20. 21. 22.
ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS:
PROBLEM 23. ANS: 1. 2 2. 5 3. 4 4. 1 5. 3 PTS: 1 NAT: NBEA I.A. 24. ANS: Note: Provide a 2-column accounting form for student use. Norris Billing Services Trial Balance December 31, 20— Cash in Bank Accounts Receivable—Aaronson's Computer Equipment Accounts Payable—Modern Office Equipment Elena Norris, Capital Elena Norris, Withdrawals Income Summary
3,340.00 715.00 4,500.00 920.00 6,865.00 550.00 —
—
Professional Fees Advertising Expense Rent Expense Supplies Expense Utilities Expense Totals PTS: 1
2,300.00 90.00 600.00 150.00 __140.00 10,085.00 NAT: NBEA I.A.
________ 10,085.00
