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Cards In This Set
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Define account number
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The number assigned to an account.
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Define correcting entry
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A journal entry made to correct an error in the ledger.
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Define file maintenance
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The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
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Define general ledger
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A ledger that contains all accounts needed to prepare financial statements.
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Define ledger
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A group of accounts.
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Define opening an account
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Writing an account title and number on the heading of an account.
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Define posting
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Transferring information from a journal entry to a ledger account.
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Define proving cash
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Determining that the amount of cash agrees with the balance of the cash account in the accounting records.
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T/F
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.
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True
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T/F
The asset division accounts for Encore Music are numbered in the 100s.
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True
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T/F
The cash account is the first asset account and is numbered 110.
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True
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T/F
The second division of Encore Music's chart of accounts is the owner's equity division.
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False
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T/F
The first digit of account numbers for accounts in the owner's equity ledger division is 3.
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True
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T/F
The last two digits in a 3-digit account number indicate the general ledger division of the account.
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False
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T/F
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.
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True
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