Directions:Each of the following statements is true or false.

1. The chart of accounts is a list of all accounts used by a business.

2. Almost any document that provides information about a business transaction can be called a journal.\

3. After source documents are used to record a transaction, they should be destroyed.

4. A day-by-day listing of the transactions of a business is called a journal.

5. Only entries that affect cash may be recorded directly in the general ledger.

6. Entering the transactions in a journal is called journalizing.

8. The general ledger is used to keep track of the current balance in each account.

9. When every transaction is entered into a journal, it is important to include the month, the day, and the year as part of the entry.

7. A posting reference indicates a journal entry has been posted to the general ledger.

10. When making a journal entry, all debited accounts must be listed before any credited accounts are listed. l l. It is easier to maintain a running balance with a T account than it is with a ledger account.

12. The account number used in the heading ofthe four-column ledger account is taken from the chart of accounts and is used in the posting process.

13. It is necessary to post journal entries to the general ledger before preparing a trial balance.

14. A trial balance must be prepared weekly.

15. If an incorrect entry has been journalized and posted to the wrong account, you should erase the incorrect information and replace it with the correct information.