| A | B |
|---|
| account number | the number assigned to an account |
| file maintenance | the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current |
| general ledger | a ledger that contains all accounts needed to prepare financial statements |
| ledger | a group of accounts |
| opening an account | writing an account title and number on the heading of an account |
| posting | transferring information from a journal entry to a ledger account |
| normal balance of sales | credit |
| normal balance of rent expense | debit |
| The first expense account number | 510 |
| The fourth asset account number | 140 |
| The sales account number | 410 |
| the owner's capital account number | 310 |
| The totals of general amount columns in a journal | are not posted. |
| The totals of special amount columns in the journal | are posted. |
| A ledger shows | in one place all change in a single account |
| Account numbers are assigned by 10s to | add new accounts easily |
| A business with two assets such as Cash and Supplies would number the accounts | Cash 110 and Supplies 120 |
| The last step in the posting process is to | place the account number in the Post. Ref. column of the journal |
| If the previous account balance has a debit balance and the current entry is a debit | the new account balance will be a debit |
| The steps for opening an account are | writing the account name and writing the account number on the account |
| The first digit in the account number 230 means | the account is a liability |
| The 30 in the account number 230 mean | the account is the third liability account |
| Because an account form has columns for the debit and credit balance of an account | it is often referred to as the balance-ruled account form. |
| When adding a new expense account between an account numbered 510 and 520, the new account is assigned | number 515 |
| Separate amounts in special amount columns are | not posted individually because the totals are posted. |
| Separate amounts in general amount columns are | are posted individually because the totals are not posted |
| With the exception of the total lines, the Post Ref column is completely filled in with | either an account number or a check mark. |
