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Question(s) / Instruction(s):

16. Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

17. Transactions are entered in the ledger accounts and then transferred to journals.

18. All business transactions must be entered first in the general ledger.

19. A simple journal entry requires only one debit to an account and one credit to an account.

20. A compound journal entry requires several debits to one account and several credits to one account.

21. Transactions are recorded in alphabetic order in a journal.

22. A journal is also known as a book of original entry.

23. The complete effect of a transaction on the accounts is disclosed in the journal.

24. The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

25. The chart of accounts is a special ledger used in accounting systems.

26. A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

27. The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

28. Posting is the process of proving the equality of debits and credits in the trial balance.

29. After a transaction has been posted, the reference column in the journal should not be blank.

30. A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

The following questions are from the Study Guide.

s31. The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

s32. The normal balance of an expense is a credit.

s33. The journal provides a chronological record of transactions.

s34. The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

s35. The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

s36. The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

s37. The trial balance will not balance when incorrect account titles are used in journalizing or posting.

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