Question 1

When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.

Accepted Answer

A) True 
 B)False  True

Question 2

Zoey Products bought goods from Lily Company. The next day, Zoey Products returned the goods because they had a defect. Zoey Products would record this:

Accepted Answer

A)  as a debit memorandum. 
B)  as a sales memorandum. 
C)  as a purchase discount. 
D)  as a purchase return. 
E)  as an abnormal sale. 
A)  as a debit memorandum. 
B)  as a sales memorandum. 
C)  as a purchase discount. 
D)  as a purchase return. 
E)  as an abnormal sale. D

Question 3

The total of the customer accounts receivable ledger at the end of the accounting period must equal the total of the

Accepted Answer

A)  creditors' accounts payable ledger. 
B)  Accounts Payable account in the general ledger. 
C)  Accounts Receivable account in the general ledger. 
D)  Accounts Receivable Credit column in the cash receipts journal. 
E)  Accounts Receivable Debit column in the cash receipts journal. 
A)  creditors' accounts payable ledger. 
B)  Accounts Payable account in the general ledger. 
C)  Accounts Receivable account in the general ledger. 
D)  Accounts Receivable Credit column in the cash receipts journal. 
E)  Accounts Receivable Debit column in the cash receipts journal. C

Question 4

The following transactions relate to Hatfield Company, a furniture wholesaler, during August of this year. Terms of sale are 2/10, n/30. The company is located in Dallas, Texas.
Instructions:
Record the transactions in the general journal using the perpetual inventory system.

Accepted Answer

The answer of The following transactions relate to Hatfield Company,...

Question 5

The entries in a purchases journal are posted to which of the following subsidiary ledger?

Accepted Answer

A)  Accounts receivable 
B)  Sales 
C)  Purchases 
D)  Inventory 
E)  Accounts payable 
A)  Accounts receivable 
B)  Sales 
C)  Purchases 
D)  Inventory 
E)  Accounts payable

Question 6

The account that is debited for every transaction in the sales journal is:

Accepted Answer

A)  Cash. 
B)  Sales Discounts. 
C)  Accounts Receivable. 
D)  Sales Return. 
E)  Accounts Payable. 
A)  Cash. 
B)  Sales Discounts. 
C)  Accounts Receivable. 
D)  Sales Return. 
E)  Accounts Payable.

Question 7

Chandler Company bought goods from Lisel Company, with shipping terms FOB destination. Which of the following statements correctly identifies who is to pay the freight bill when the title is transferred?

Accepted Answer

A)  Lisel pays transportation, and title is exchanged when goods are unloaded at Chandler Company. 
B)  Chandler pays transportation, and title is exchanged when goods are loaded at Lisel Company. 
C)  Lisel pays transportation, and title is exchanged when goods are unloaded at Lisel Company. 
D)  The buyer pays the freight, thus the term FOB (free on board). 
E)  Chandler pays transportation, and title is exchanged when goods are unloaded at Chandler Company. 
A)  Lisel pays transportation, and title is exchanged when goods are unloaded at Chandler Company. 
B)  Chandler pays transportation, and title is exchanged when goods are loaded at Lisel Company. 
C)  Lisel pays transportation, and title is exchanged when goods are unloaded at Lisel Company. 
D)  The buyer pays the freight, thus the term FOB (free on board). 
E)  Chandler pays transportation, and title is exchanged when goods are unloaded at Chandler Company.

Question 8

When goods are shipped FOB shipping point, which of the following is NOT true?

Accepted Answer

A)  The seller assumes responsibility for all freight costs 
B)  Shipping costs may be listed separately on the customer's invoice 
C)  The seller may pay the freight charges directly, but invoices the buyer. 
D)  The buyer is responsible for all freight costs 
A)  The seller assumes responsibility for all freight costs 
B)  Shipping costs may be listed separately on the customer's invoice 
C)  The seller may pay the freight charges directly, but invoices the buyer. 
D)  The buyer is responsible for all freight costs

Question 9

Debiting the Sales Returns and Allowances account will have the same effect on sales as a deduction from the Sales account.

Accepted Answer

A) True 
 B)False

Question 10

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

Accepted Answer

A)  entries in subsidiary ledgers. 
B)  columns in special journals. 
C)  accounts in the general ledger. 
D)  all of these. 
E)  none of these. 
A)  entries in subsidiary ledgers. 
B)  columns in special journals. 
C)  accounts in the general ledger. 
D)  all of these. 
E)  none of these.

Question 11

For the following account titles, indicate if it is used in a periodic, perpetual, or both inventory system(s) when journalizing transactions by placing an X in the appropriate column.

Accepted Answer

The answer of For the following account titles, indicate if...

Question 12

The purchases journal is used for the purchase of

Accepted Answer

A)  merchandise for cash. 
B)  merchandise on account. 
C)  assets other than merchandise for cash. 
D)  assets other than merchandise on account. 
E)  merchandise or other assets for cash. 
A)  merchandise for cash. 
B)  merchandise on account. 
C)  assets other than merchandise for cash. 
D)  assets other than merchandise on account. 
E)  merchandise or other assets for cash.

Question 13

Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.

Accepted Answer

A) True 
 B)False

Question 14

Assume the general ledger Accounts Receivable controlling account matches the balance of the schedule of accounts receivable. Is it possible that errors could have occurred anyway? Explain how this could have occurred or explain why it is impossible for this to have occurred.

Accepted Answer

If the balance of the general ledger Acc

Question 15

Jackson Company uses the perpetual inventory system. It sold merchandise to Jenny. After one month, Jenny returned $250 worth of the merchandise which had a cost of $150. Which of the following journal entries records the cost of merchandise returned?

Accepted Answer

A)  A debit to Accounts Receivable of $250, a credit to Sales Return and Allowances of $250 
B)  A debit to Cost of Goods Sold of $150, a credit to Merchandise Inventory of $150 
C)  A debit to Merchandise Inventory of $150, a credit to Cost of Goods Sold of $150 
D)  A debit to Accounts Receivable of $250, a credit to Merchandise Inventory of $250 
A)  A debit to Accounts Receivable of $250, a credit to Sales Return and Allowances of $250 
B)  A debit to Cost of Goods Sold of $150, a credit to Merchandise Inventory of $150 
C)  A debit to Merchandise Inventory of $150, a credit to Cost of Goods Sold of $150 
D)  A debit to Accounts Receivable of $250, a credit to Merchandise Inventory of $250

Question 16

Freight charges may be

Accepted Answer

A)  listed separately on the invoice. 
B)  billed separately from the invoice. 
C)  included in the price of the goods on the invoice. 
D)  all of these. 
E)  none of these. 
A)  listed separately on the invoice. 
B)  billed separately from the invoice. 
C)  included in the price of the goods on the invoice. 
D)  all of these. 
E)  none of these.

Question 17

Jones Co. takes a physical inventory count of their merchandise each year in order to update the inventory value. This is an example of a(n):

Accepted Answer

A)  Perpetual Inventory System 
B)  Periodic Inventory System 
C)  Re-evaluation Inventory System 
D)  Adjusting Inventory System 
A)  Perpetual Inventory System 
B)  Periodic Inventory System 
C)  Re-evaluation Inventory System 
D)  Adjusting Inventory System

Question 18

A debit to Accounts Payable for a return of goods on account will be posted to the controlling account but not to the individual creditor's account.

Accepted Answer

A) True 
 B)False

Question 19

Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc., invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800). Which of the following journal entries records this purchase transaction?

Accepted Answer

A)  A debit to Merchandise Inventory of $23,600, a credit to Accounts Payable of $23,600 
B)  A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800 
C)  A debit to Merchandise Inventory of $20,000, a debit to Freight of $1,800, a credit to Accounts Payable of $21,800 
D)  A debit to Cost of Goods Purchased of $20,000, a debit to Freight Out of $1,800, a credit to Accounts Payable of $21,800 
A)  A debit to Merchandise Inventory of $23,600, a credit to Accounts Payable of $23,600 
B)  A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800 
C)  A debit to Merchandise Inventory of $20,000, a debit to Freight of $1,800, a credit to Accounts Payable of $21,800 
D)  A debit to Cost of Goods Purchased of $20,000, a debit to Freight Out of $1,800, a credit to Accounts Payable of $21,800

Question 20

Cash sales are recorded in the sales journal.

Accepted Answer

A) True 
 B)False

When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.

Zoey Products bought goods from Lily Company. The next day, Zoey Products returned the goods because they had a defect. Zoey Products would record this:

The total of the customer accounts receivable ledger at the end of the accounting period must equal the total of the

The following transactions relate to Hatfield Company, a furniture wholesaler, during August of this year. Terms of sale are 2/10, n/30. The company is located in Dallas, Texas. Instructions: Record the transactions in the general journal using the perpetual inventory system.

The entries in a purchases journal are posted to which of the following subsidiary ledger?

The account that is debited for every transaction in the sales journal is:

Chandler Company bought goods from Lisel Company, with shipping terms FOB destination. Which of the following statements correctly identifies who is to pay the freight bill when the title is transferred?

When goods are shipped FOB shipping point, which of the following is NOT true?

Debiting the Sales Returns and Allowances account will have the same effect on sales as a deduction from the Sales account.

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

For the following account titles, indicate if it is used in a periodic, perpetual, or both inventory system(s) when journalizing transactions by placing an X in the appropriate column.

The purchases journal is used for the purchase of

Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.

Assume the general ledger Accounts Receivable controlling account matches the balance of the schedule of accounts receivable. Is it possible that errors could have occurred anyway? Explain how this could have occurred or explain why it is impossible for this to have occurred.

Jackson Company uses the perpetual inventory system. It sold merchandise to Jenny. After one month, Jenny returned $250 worth of the merchandise which had a cost of $150. Which of the following journal entries records the cost of merchandise returned?

Freight charges may be

Jones Co. takes a physical inventory count of their merchandise each year in order to update the inventory value. This is an example of a(n):

A debit to Accounts Payable for a return of goods on account will be posted to the controlling account but not to the individual creditor's account.

Cash sales are recorded in the sales journal.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 9: Sales and Purchases

When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.

Zoey Products bought goods from Lily Company. The next day, Zoey Products returned the goods because they had a defect. Zoey Products would record this:

The total of the customer accounts receivable ledger at the end of the accounting period must equal the total of the

The following transactions relate to Hatfield Company, a furniture wholesaler, during August of this year. Terms of sale are 2/10, n/30. The company is located in Dallas, Texas. Instructions: Record the transactions in the general journal using the perpetual inventory system.

The entries in a purchases journal are posted to which of the following subsidiary ledger?

The account that is debited for every transaction in the sales journal is:

Chandler Company bought goods from Lisel Company, with shipping terms FOB destination. Which of the following statements correctly identifies who is to pay the freight bill when the title is transferred?

When goods are shipped FOB shipping point, which of the following is NOT true?

Debiting the Sales Returns and Allowances account will have the same effect on sales as a deduction from the Sales account.

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

For the following account titles, indicate if it is used in a periodic, perpetual, or both inventory system(s) when journalizing transactions by placing an X in the appropriate column.

The purchases journal is used for the purchase of

Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.

Assume the general ledger Accounts Receivable controlling account matches the balance of the schedule of accounts receivable. Is it possible that errors could have occurred anyway? Explain how this could have occurred or explain why it is impossible for this to have occurred.

Jackson Company uses the perpetual inventory system. It sold merchandise to Jenny. After one month, Jenny returned $250 worth of the merchandise which had a cost of $150. Which of the following journal entries records the cost of merchandise returned?

Freight charges may be

Jones Co. takes a physical inventory count of their merchandise each year in order to update the inventory value. This is an example of a(n):

A debit to Accounts Payable for a return of goods on account will be posted to the controlling account but not to the individual creditor's account.

Cash sales are recorded in the sales journal.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters