Question 1

The general ledger and the accounts receivable subsidiary ledger are the same book.

Accepted Answer

A) True 
 B)False

Question 2

Sales Returns and Allowances is a contra-revenue account with a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 3

The normal balance of the accounts receivable subsidiary ledger is:

Accepted Answer

A) credit. 
B) debit. 
C) It does not have a normal balance. 
D) Not enough information provided. 
A) credit. 
B) debit. 
C) It does not have a normal balance. 
D) Not enough information provided.

Question 4

Accounts of a single type are kept in the:

Accepted Answer

A) supplemental ledger. 
B) junior ledger. 
C) subsidiary ledger. 
D) None of these answers is correct. 
A) supplemental ledger. 
B) junior ledger. 
C) subsidiary ledger. 
D) None of these answers is correct.

Question 5

Determine the amount of cash collected on a credit sale in the amount of $5,000,subject to a 5% sales tax when $500 worth of merchandise has already been returned for credit.Assume cash is collected after the discount period.
$ ________

Accepted Answer

The answer of Determine the amount of cash collected on...

Question 6

A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded.This error will cause:

Accepted Answer

A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the sales discount account to be understated. 
D) the sales account to be overstated. 
A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the sales discount account to be understated. 
D) the sales account to be overstated.

Question 7

The Bixby Co.had the following transactions involving the purchase of merchandise.Prepare the necessary general journal entries.Any applicable freight costs are prepaid by the seller.The perpetual inventory method is in use.
  
-Merchandise is:

Accepted Answer

A) the same as inventory. 
B) an asset. 
C) the same as supplies. 
D) Both A and B are correct. 
A) the same as inventory. 
B) an asset. 
C) the same as supplies. 
D) Both A and B are correct.

Question 8

If management wanted to determine if customers were returning goods at a higher rate than usual,it could use the Sales Returns and Allowances account to analyze the information.

Accepted Answer

A) True 
 B)False

Question 9

Sales Tax Payable represents an asset on the books of the seller.

Accepted Answer

A) True 
 B)False

Question 10

Urban Camping sold goods for $200 to a charge customer.The customer returned for credit $80 worth of goods.Which entry is required to record the return transaction?

Accepted Answer

A) Debit Sales Returns and Allowances $80;credit Accounts Receivable $80 
B) Debit Sales Returns and Allowances $80;credit Sales $80 
C) Debit Sales $80;credit Sales Returns and Allowances $80 
D) Debit Accounts Receivable $80;credit Sales Returns and Allowances $80 
A) Debit Sales Returns and Allowances $80;credit Accounts Receivable $80 
B) Debit Sales Returns and Allowances $80;credit Sales $80 
C) Debit Sales $80;credit Sales Returns and Allowances $80 
D) Debit Accounts Receivable $80;credit Sales Returns and Allowances $80

Question 11

A wholesale customer returned merchandise having already paid for it within the cash discount period.The return will be recorded with:

Accepted Answer

A) a credit to an asset account. 
B) a credit to a liability account. 
C) a credit to Capital. 
D) None of these is correct. 
A) a credit to an asset account. 
B) a credit to a liability account. 
C) a credit to Capital. 
D) None of these is correct.

Question 12

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

Accepted Answer

A) credit period. 
B) discount period. 
C) short period. 
D) due date. 
A) credit period. 
B) discount period. 
C) short period. 
D) due date.

Question 13

A checkmark in the PR column in the general journal means:

Accepted Answer

A) the entry was recorded correctly. 
B) the amount was posted to the controlling account. 
C) the amount was recorded in the subsidiary ledger. 
D) the customer paid in the discount period. 
A) the entry was recorded correctly. 
B) the amount was posted to the controlling account. 
C) the amount was recorded in the subsidiary ledger. 
D) the customer paid in the discount period.

Question 14

Sales Tax Payable is a:

Accepted Answer

A) liability account with a debit balance. 
B) liability account with a credit balance. 
C) contra-asset account with a debit balance. 
D) contra-asset account with a credit balance. 
A) liability account with a debit balance. 
B) liability account with a credit balance. 
C) contra-asset account with a debit balance. 
D) contra-asset account with a credit balance.

Question 15

Max's Art studio was moving and sold furniture that was no longer needed for cash.The entry would include:

Accepted Answer

A) a credit to Sales. 
B) a debit to Sales. 
C) a credit to Furniture. 
D) a credit to Cash. 
A) a credit to Sales. 
B) a debit to Sales. 
C) a credit to Furniture. 
D) a credit to Cash.

Question 16

To show that you have posted to an account in the General Ledger,you use a checkmark.

Accepted Answer

A) True 
 B)False

Question 17

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column } 3 \
\hline \text { Maintenance Expense } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 18

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax.Terms of the sale were 2/10,n/30.Which entry is required to record this?

Accepted Answer

A) Debit Cash,$900;credit Sales,$900 
B) Debit Cash,$936;debit Sales Discount $18;credit Accounts Receivable,$954 
C) Debit Cash,$954;credit Sales,$954 
D) Debit Cash,$936;credit Sales,$936 
A) Debit Cash,$900;credit Sales,$900 
B) Debit Cash,$936;debit Sales Discount $18;credit Accounts Receivable,$954 
C) Debit Cash,$954;credit Sales,$954 
D) Debit Cash,$936;credit Sales,$936

Question 19

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Sales } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 20

Entries to customers' accounts for sales are posted in the:

Accepted Answer

A) accounts receivable subsidiary ledger. 
B) accounts payable subsidiary ledger. 
C) fixed asset subsidiary ledger. 
D) sales subsidiary ledger. 
A) accounts receivable subsidiary ledger. 
B) accounts payable subsidiary ledger. 
C) fixed asset subsidiary ledger. 
D) sales subsidiary ledger.

Exam 9: Sales and Cash Receipts

The general ledger and the accounts receivable subsidiary ledger are the same book.

Sales Returns and Allowances is a contra-revenue account with a normal debit balance.

The normal balance of the accounts receivable subsidiary ledger is:

Accounts of a single type are kept in the:

Determine the amount of cash collected on a credit sale in the amount of $5,000,subject to a 5% sales tax when $500 worth of merchandise has already been returned for credit.Assume cash is collected after the discount period. $ ________

A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded.This error will cause:

The Bixby Co.had the following transactions involving the purchase of merchandise.Prepare the necessary general journal entries.Any applicable freight costs are prepaid by the seller.The perpetual inventory method is in use. -Merchandise is:

If management wanted to determine if customers were returning goods at a higher rate than usual,it could use the Sales Returns and Allowances account to analyze the information.

Sales Tax Payable represents an asset on the books of the seller.

Urban Camping sold goods for $200 to a charge customer.The customer returned for credit $80 worth of goods.Which entry is required to record the return transaction?

A wholesale customer returned merchandise having already paid for it within the cash discount period.The return will be recorded with:

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

A checkmark in the PR column in the general journal means:

Sales Tax Payable is a:

Max's Art studio was moving and sold furniture that was no longer needed for cash.The entry would include:

To show that you have posted to an account in the General Ledger,you use a checkmark.

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. - Column 1 Column 2 Column 3 Maintenance Expense

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax.Terms of the sale were 2/10,n/30.Which entry is required to record this?

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. - Column 1 Column 2 Column 3 Sales

Entries to customers' accounts for sales are posted in the:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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