Study Name

Identifying Accounting Terms

Perfect
Score
8 Pts.
Your
Score

Guide Identifying Accounting Concepts and Practices

Analyzing Posting from a Journal to a General Ledger
20 Pts.
16 Pts.

4 Total 44 Pts.

Part One-Identifying Accounting Terms

Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.

Column I Column II Answers

A. account number 1. A group of accounts. (p. 92) 1. e

B. correcting entry 2. A ledger that contains all accounts needed to prepare financial 2. d
statements. (p. 92)
a
C. file maintenance 3. The number assigned to an account. (p. 92) 3.
.,
D. general ledger 4. The procedure for arranging accounts in a general ledger, 4. c
assigning account numbers, and keeping records current. (p. 93)
E. ledger 5. Writing an account title and number on the heading of an 5.
f
account. (p. 94)
F. opening an 6. Transferring information from a journa~ entry to a ledger account. 6.
g
,(.~~-
account (p. 96) '·
G. posting 7. Determining that the amount of cash agrees ~ith the_balance of 7. h
the cash account in the accounting records. (p'. 106)
H. proving cash 8. A journal entry made to correct an error in a previous journal 8. b
entry. (p. 106)

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Part Two-Identifying Accounting Concepts and
Practices
Directions: Place a T for True or an F for False in the Answers column to
show whether each of the following statements is true or false.
Answers
1. Because an account form has columns for the debit and credit balance of an account, it 1. _ T
__
is often referred to as the balance-ruled account form. (p. 91)
2. The asset division accounts for TechKnow Consulting are numbered in the 100s. (p. 92)
T
2. _ __
3. The Cash account is the first asset account and is numbered 100. (p. 92)
F
3. _ __
4. The second division of TechKnow Consulting's chart of accounts is the owner's equity 4. _F__
division. (p. 92)
5. The first digit of account numbers for accounts in the owner's equity ledger division is 3. T
5. _ __
(p. 92)
T
6. The last two digits in a 3-digit account number indicate the general ledger division of 6. _ __
the account. (p. 92)
7. When adding a new expense account between accounts numbered 510 and 520, the new 7. _T
__
account is assigned the account number 515. (p. 93)
8. TechKnow Consulting arranges expense accounts in chronologic~l order in its general 8. _F
__
ledger. (p. 93)
9. The two steps for opening an account are writing the account title and recording the 9. _F
__
balance. (p. 94) ·
' '
10. Posting sorts journal entries so that all debits and credits affecting each account are
T
10. _ __
brought together in one place. (p. 96)
11. Each amount in the Debit and Credit columps of a general journal is ,posted ,t o the 11. _T
__
account written in the Account Title column. (p. 96)
.J • l •

12. The only reason for the Post. Ref. columns of the journal and general ledger is to indicate 12. f
which entries in the journal still need to be posted if posting is interrupted. (p. 96)
---
T
13. A blank in the Post. Ref. column of the journal indicates that posting for that line still 13.
needs to be completed. (p. 96) ---
14. Recording the posting reference is always the last step in the posting procedure. (p. 96) 14. T
---
15. The first step to post an amount from the Credit column is to write the date in the Date 15. T
column of the account. (p. 97) ---
16. Whenever the credits in an account exceed the debits, the balance is a credit. (p. 99) 16. T
---
17. Cash can be proved at any time. (p. 106) 17. T
---
18. If the cash balance in the checkbook equals the cash balance in the Cash account, cash is 18. T
proved. (p. 106) ---
19. Journal errors discovered before entries are posted are corrected by first preparing a 19. F
memorandum describing the correction to be made. (p. 106) ---
20. When making a correcting entry, the same four steps are followed as when making any 20. T
journal entry. (p. 107) - --

54 • Working Papers CENTURY 21 ACCOUNTING, 8TH EDmON

•
 ..
•
:J,

Name _______________________ Date _ _ _ _ _ _ _ Class _ _ _ _ _ __

(ff:!\
~- •'
Part Three-Analyzing Posting from a Journal to a
t General Ledger
•
.' Directions: In the journal below, some items are identified with capital
• letters. In the general ledger accounts, locations to which items are posted
are identified with numbers. For each number in a general ledger account,
select the letter in the journal that will be posted to the account. Print the
letter identifying your choice in the Answers column. (pp. 96-98)

Bold
Numbers
GENERAL JOURNAL PAGE A in Ledger
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
DEBIT CRl!OIT
Accounts Answers
1
20--
Mav 2 Cash Rl 1 0 00 00 1 1. B
z
E. J. Peters, Capital 10 00 00 z

• 4 Supplies
2. C
Ml 20 0 00
.
3

• Accounts Payable-Suburban Office Supplies 20 0 00 E

3.
• 6 Prepaid Insurance Cl 50 0 00 •
• Cash 50 0 00 • 4. F
7
B C D E F G 7

5.
B

6.
C
Cash ACCOUNT NO. 110

DATE POST.
REI"",
7. E
1 2 3
8. F
AccouNT Supplies ACCOUNT NO, 120 9. B
REF,
10. C
5 6 7

11. E
AccouNT Prepaid Insurance 130
F
ACCOUNT NO.
12.
DATE ITl:M
B
9 10 11 13.

14.
C
Accounts Payable-Suburban Office Supplies
AccouNT
ACCOUNT NO. 210
15. E
DATIi: ITEM POOT.
RU.

13 14 15 16. G

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Chapter 4 • 55