Question 1

A characteristic of the Sales Discount account is:

Accepted Answer

A)  It has a Debit Normal Balance 
B)  It is a Contra-Asset Account 
C)  It records cash discounts given to customers for prompt payment 
D)  A & C 
A)  It has a Debit Normal Balance 
B)  It is a Contra-Asset Account 
C)  It records cash discounts given to customers for prompt payment 
D)  A & C

Question 2

The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is

Accepted Answer

A)  $450. 
B)  $30. 
C)  $21. 
D)  $29.40. 
E)  $24. 
A)  $450. 
B)  $30. 
C)  $21. 
D)  $29.40. 
E)  $24.

Question 3

The cash payments journal is used for transactions involving

Accepted Answer

A)  credits to Cash, regardless of the offsetting debits. 
B)  credits to Cash but not affecting subsidiary ledgers. 
C)  a debit to Cash and credits to other accounts. 
D)  a debit to Cash and debits or credits to other balance sheet accounts. 
E)  a credit to Cash and a debit to income statement accounts. 
A)  credits to Cash, regardless of the offsetting debits. 
B)  credits to Cash but not affecting subsidiary ledgers. 
C)  a debit to Cash and credits to other accounts. 
D)  a debit to Cash and debits or credits to other balance sheet accounts. 
E)  a credit to Cash and a debit to income statement accounts.

Question 4

On October 30, goods with a list price of $9,200 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on November 5. The amount of cash received on November 5 is

Accepted Answer

A)  $6,160. 
B)  $8,770. 
C)  $6,762. 
D)  $6,036. 
E)  $6,900. 
A)  $6,160. 
B)  $8,770. 
C)  $6,762. 
D)  $6,036. 
E)  $6,900.

Question 5

Special journal used to record all transactions where cash is received

Accepted Answer

A) Purchases discount 
B) Cash discount 
C) Trade discount 
D) Credit terms 
E) Cash payments journal
F)Promissory note
G)Cash receipts journal
H)Credit Card Expense
I)Credit period
J)Sales discount 
A) Purchases discount 
B) Cash discount 
C) Trade discount 
D) Credit terms 
E) Cash payments journal
F)Promissory note
G)Cash receipts journal
H)Credit Card Expense
I)Credit period
J)Sales discount

Question 6

Which of the following is the correct classification of Sales Discount account?

Accepted Answer

A)  Contra asset account 
B)  Contra revenue account 
C)  Contra expenses account 
D)  Contra drawings account 
A)  Contra asset account 
B)  Contra revenue account 
C)  Contra expenses account 
D)  Contra drawings account

Question 7

If merchandise is bought with a list price of $3,500, subject to a 25 percent trade discount and a cash discount of 2/10, n/30, the amount credited to Accounts Payable is $2,625.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements are true?

Accepted Answer

A)  Trade discounts are not journalized. 
B)  Trade discounts are the same as sales discounts. 
C)  Trade discounts are related to cash payments. 
D)  Trade discounts are the same as purchase discounts. 
A)  Trade discounts are not journalized. 
B)  Trade discounts are the same as sales discounts. 
C)  Trade discounts are related to cash payments. 
D)  Trade discounts are the same as purchase discounts.

Question 9

Which of the following means "do not post-the figures have already been posted separately" in a cash receipts journal?

Accepted Answer

A)  An (X) under the total of the Other Accounts Credit Column 
B)  An (Y) under the total of the Sales Accounts Debit Column 
C)  An (Z) under the total of the Expense Accounts Credit Column 
D)  An (
A)  under the total of the Accounts Receivables Accounts Debit Column 
E)  An (
B)  under the total of the Wages Accounts Credit Column 
A)  An (X) under the total of the Other Accounts Credit Column 
B)  An (Y) under the total of the Sales Accounts Debit Column 
C)  An (Z) under the total of the Expense Accounts Credit Column 
D)  An (
A)  under the total of the Accounts Receivables Accounts Debit Column 
E)  An (
B)  under the total of the Wages Accounts Credit Column

Question 10

The reductions from the list prices that are not journalized are called:

Accepted Answer

A)  business margins. 
B)  trade discounts. 
C)  freight commissions. 
D)  recoverable discounts. 
E)  bad debts. 
A)  business margins. 
B)  trade discounts. 
C)  freight commissions. 
D)  recoverable discounts. 
E)  bad debts.

Question 11

Tyler Floor Company sold flooring for $1,275 cash. The sales tax for the customer using a bank credit card was 6%. Tyler Floor Company will debit Cash for what amount?

Accepted Answer

A)  $1,351.50 
B)  $1,324.47 
C)  $1,198.58 
D)  $1,174.61 
A)  $1,351.50 
B)  $1,324.47 
C)  $1,198.58 
D)  $1,174.61

Question 12

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash receipts journal.

Accepted Answer

The answer of Indicate the appropriate columns in which each...

Question 13

Tyler Corporation bought office supplies for $125 cash. In what journal would this transaction be recorded?

Accepted Answer

A)  Purchase Journal 
B)  Sales Journal 
C)  Cash Receipt Journal 
D)  Cash Payment Journal 
A)  Purchase Journal 
B)  Sales Journal 
C)  Cash Receipt Journal 
D)  Cash Payment Journal

Question 14

When a general journal and four special journals are in use, the entries in the Cash account will generally be posted from

Accepted Answer

A)  two special journals and the general journal. 
B)  only two of the four special journals. 
C)  all the books of original entry. 
D)  only three of the four special journals. 
E)  only the general journal. 
A)  two special journals and the general journal. 
B)  only two of the four special journals. 
C)  all the books of original entry. 
D)  only three of the four special journals. 
E)  only the general journal.

Question 15

Which of the following is not posted daily when using special journals?

Accepted Answer

A)  A transaction involving a customer 
B)  A transaction entered into the Other Accounts column of a special journal 
C)  A transaction involving a creditor 
D)  A column total in a special journal 
E)  Individual numbers in columns and column totals in special journals are all posted daily. 
A)  A transaction involving a customer 
B)  A transaction entered into the Other Accounts column of a special journal 
C)  A transaction involving a creditor 
D)  A column total in a special journal 
E)  Individual numbers in columns and column totals in special journals are all posted daily.

Question 16

Transactions for sales discounts affecting Accounts Receivable are recorded in the general journal.

Accepted Answer

A) True 
 B)False

Question 17

The column total for Other Accounts in the cash payments journal is not posted to the general ledger.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following refers to the cash discount granted by suppliers in return for prompt payments by buyers?

Accepted Answer

A)  Trade Discount 
B)  Purchases Discount 
C)  Prompt Payment Discount 
D)  Scheduled Discount 
A)  Trade Discount 
B)  Purchases Discount 
C)  Prompt Payment Discount 
D)  Scheduled Discount

Question 19

This journal contains all of the transactions from cash increasing

Accepted Answer

A)  Cash Payment Journal 
B)  Sales Journal 
C)  Cash Receipts Journal 
D)  Purchase Journal 
A)  Cash Payment Journal 
B)  Sales Journal 
C)  Cash Receipts Journal 
D)  Purchase Journal

Question 20

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash payments journal.

Accepted Answer

The answer of Indicate the appropriate columns in which each...

A characteristic of the Sales Discount account is:

The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is

The cash payments journal is used for transactions involving

On October 30, goods with a list price of $9,200 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on November 5. The amount of cash received on November 5 is

Special journal used to record all transactions where cash is received

Which of the following is the correct classification of Sales Discount account?

If merchandise is bought with a list price of $3,500, subject to a 25 percent trade discount and a cash discount of 2/10, n/30, the amount credited to Accounts Payable is $2,625.

Which of the following statements are true?

Which of the following means "do not post-the figures have already been posted separately" in a cash receipts journal?

The reductions from the list prices that are not journalized are called:

Tyler Floor Company sold flooring for $1,275 cash. The sales tax for the customer using a bank credit card was 6%. Tyler Floor Company will debit Cash for what amount?

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash receipts journal.

Tyler Corporation bought office supplies for $125 cash. In what journal would this transaction be recorded?

When a general journal and four special journals are in use, the entries in the Cash account will generally be posted from

Which of the following is not posted daily when using special journals?

Transactions for sales discounts affecting Accounts Receivable are recorded in the general journal.

The column total for Other Accounts in the cash payments journal is not posted to the general ledger.

Which of the following refers to the cash discount granted by suppliers in return for prompt payments by buyers?

This journal contains all of the transactions from cash increasing

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash payments 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

Sales and Purchases

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 10: Cash Receipts and Cash Payments

A characteristic of the Sales Discount account is:

The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is

The cash payments journal is used for transactions involving

On October 30, goods with a list price of $9,200 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on November 5. The amount of cash received on November 5 is

Special journal used to record all transactions where cash is received

Which of the following is the correct classification of Sales Discount account?

If merchandise is bought with a list price of $3,500, subject to a 25 percent trade discount and a cash discount of 2/10, n/30, the amount credited to Accounts Payable is $2,625.

Which of the following statements are true?

Which of the following means "do not post-the figures have already been posted separately" in a cash receipts journal?

The reductions from the list prices that are not journalized are called:

Tyler Floor Company sold flooring for $1,275 cash. The sales tax for the customer using a bank credit card was 6%. Tyler Floor Company will debit Cash for what amount?

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash receipts journal.

Tyler Corporation bought office supplies for $125 cash. In what journal would this transaction be recorded?

When a general journal and four special journals are in use, the entries in the Cash account will generally be posted from

Which of the following is not posted daily when using special journals?

Transactions for sales discounts affecting Accounts Receivable are recorded in the general journal.

The column total for Other Accounts in the cash payments journal is not posted to the general ledger.

Which of the following refers to the cash discount granted by suppliers in return for prompt payments by buyers?

This journal contains all of the transactions from cash increasing

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash payments 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

Sales and Purchases

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters