Question 1

If the terms of sale are 1/10, n/30, the buyer has thirty days after the date of the invoice to take advantage of a 1 percent cash discount.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accounts are considered contra accounts?

Accepted Answer

A)  Sales Discounts 
B)  Purchase Returns & Allowances 
C)  Sales Returns & Allowances 
D)  All of the above 
A)  Sales Discounts 
B)  Purchase Returns & Allowances 
C)  Sales Returns & Allowances 
D)  All of the above

Question 3

Collection of a sale on account is recorded in the sales journal.

Accepted Answer

A) True 
 B)False

Question 4

The agreement between a seller and a buyer about payment on a purchase is called

Accepted Answer

A)  Credit Period 
B)  Credit Terms 
C)  Credit Agreement 
D)  Purchase Agreement 
A)  Credit Period 
B)  Credit Terms 
C)  Credit Agreement 
D)  Purchase Agreement

Question 5

What are the advantages of using a cash receipts journal and cash payments journal?

Accepted Answer

The advantage of usi

Question 6

Entries in the Accounts Payable Debit column of the cash payments journal are posted daily to the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 7

A written promise to pay a specified amount at a specified time

Accepted Answer

A)  Promise to Pay 
B)  Accrued Note 
C)  Promissory Note 
D)  Specified Note 
A)  Promise to Pay 
B)  Accrued Note 
C)  Promissory Note 
D)  Specified Note

Question 8

If a part of merchandise previously sold is returned, the cash discount is calculated on the amount left after the return.

Accepted Answer

A) True 
 B)False

Question 9

A business sells merchandise, $500, on account with terms of 1/20, n/60. The customer pays within the discount period. The amount recorded in the Cash Debit column is:

Accepted Answer

A)  $495.00. 
B)  $618.00. 
C)  $300.00. 
D)  $228.00. 
E)  $345.00. 
A)  $495.00. 
B)  $618.00. 
C)  $300.00. 
D)  $228.00. 
E)  $345.00.

Question 10

The Sales Discounts account is recorded on the books of the seller.

Accepted Answer

A) True 
 B)False

Question 11

Sales Discounts and Sales Returns and Allowances have the following characteristics in common:

Accepted Answer

A)  Contra-Asset, DR 
B)  Contra-Revenue, DR 
C)  Contra-Asset, CR 
D)  Contra-Revenue, CR 
A)  Contra-Asset, DR 
B)  Contra-Revenue, DR 
C)  Contra-Asset, CR 
D)  Contra-Revenue, CR

Question 12

The following transactions were completed by Aquamarine Supplies during the second half of May. Terms of sale are 1/10, n/30.
​
​
   Instructions:
Record the transactions for the second half of May, using a cash receipts journal or a cash payments journal.

Accepted Answer

The answer of The following transactions were completed by Aquamarine...

Question 13

Which of the following journals has end-of-the-month postings?

Accepted Answer

A)  Cash payments journal 
B)  Purchases journal 
C)  Sales journal 
D)  Cash receipts journal 
E)  All special journals have end-of-the-month postings. 
A)  Cash payments journal 
B)  Purchases journal 
C)  Sales journal 
D)  Cash receipts journal 
E)  All special journals have end-of-the-month postings.

Question 14

Explain why a business would choose to use special journals. Must a business open all four special journals in order to use special journals?

Accepted Answer

A business that uses one or more special

Question 15

The Credit Card Expense column would most likely be found in

Accepted Answer

A)  the purchases journal. 
B)  the cash payments journal. 
C)  the sales journal. 
D)  the cash receipts journal. 
E)  all the special journals. 
A)  the purchases journal. 
B)  the cash payments journal. 
C)  the sales journal. 
D)  the cash receipts journal. 
E)  all the special journals.

Question 16

The amount a customer can deduct if the bill is paid within a specific period of time is called a

Accepted Answer

A)  Credit Period 
B)  Cash Discount 
C)  Credit Discount 
D)  Trade Discount 
A)  Credit Period 
B)  Cash Discount 
C)  Credit Discount 
D)  Trade Discount

Question 17

Purchase of merchandise for cash would be recorded in which journal?

Accepted Answer

A)  Purchase Invoice Journal 
B)  Cash Payments Journal 
C)  Supplemental Purchasing Journal 
D)  General Journal 
A)  Purchase Invoice Journal 
B)  Cash Payments Journal 
C)  Supplemental Purchasing Journal 
D)  General Journal

Question 18

Barnes Company purchased merchandise on account, $3,500, with terms 3/10, n/30. The entry required of Barnes Company to record the transaction in the cash payments journal, assuming payment is not made within the discount period, is

Accepted Answer

A)  debit Accounts Payable, $3,500; credit Sales Discounts, $105; credit Cash, $3,395. 
B)  debit Accounts Payable, $3,500; credit Cash, $3,500. 
C)  debit Accounts Payable, $3,395; credit Cash, $3,395. 
D)  debit Accounts Payable, $3,500; credit Purchases Discounts, $105; credit Cash, $3,395. 
E)  credit Accounts Payable, $3,500; credit Cash, $3,500. 
A)  debit Accounts Payable, $3,500; credit Sales Discounts, $105; credit Cash, $3,395. 
B)  debit Accounts Payable, $3,500; credit Cash, $3,500. 
C)  debit Accounts Payable, $3,395; credit Cash, $3,395. 
D)  debit Accounts Payable, $3,500; credit Purchases Discounts, $105; credit Cash, $3,395. 
E)  credit Accounts Payable, $3,500; credit Cash, $3,500.

Question 19

A business sells merchandise, $850, plus 4 percent sales tax, and the customer used a bank charge card. The discount charged by the bank is 3 percent of the total of sales plus sales tax. The amount recorded in the Sales Tax Payable Credit column of its cash receipt journal is:

Accepted Answer

A)  $20.00. 
B)  $34.00. 
C)  $18.00. 
D)  $50.00. 
E)  $70.00. 
A)  $20.00. 
B)  $34.00. 
C)  $18.00. 
D)  $50.00. 
E)  $70.00.

Question 20

Credit card receipts, cash, checks, electronic funds transfers are all examples of source documents that would be recorded in the following journal:

Accepted Answer

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

If the terms of sale are 1/10, n/30, the buyer has thirty days after the date of the invoice to take advantage of a 1 percent cash discount.

Which of the following accounts are considered contra accounts?

Collection of a sale on account is recorded in the sales journal.

The agreement between a seller and a buyer about payment on a purchase is called

What are the advantages of using a cash receipts journal and cash payments journal?

Entries in the Accounts Payable Debit column of the cash payments journal are posted daily to the accounts payable ledger.

A written promise to pay a specified amount at a specified time

If a part of merchandise previously sold is returned, the cash discount is calculated on the amount left after the return.

A business sells merchandise, $500, on account with terms of 1/20, n/60. The customer pays within the discount period. The amount recorded in the Cash Debit column is:

The Sales Discounts account is recorded on the books of the seller.

Sales Discounts and Sales Returns and Allowances have the following characteristics in common:

The following transactions were completed by Aquamarine Supplies during the second half of May. Terms of sale are 1/10, n/30. Instructions: Record the transactions for the second half of May, using a cash receipts journal or a cash payments journal.

Which of the following journals has end-of-the-month postings?

Explain why a business would choose to use special journals. Must a business open all four special journals in order to use special journals?

The Credit Card Expense column would most likely be found in

The amount a customer can deduct if the bill is paid within a specific period of time is called a

Purchase of merchandise for cash would be recorded in which journal?

Barnes Company purchased merchandise on account, $3,500, with terms 3/10, n/30. The entry required of Barnes Company to record the transaction in the cash payments journal, assuming payment is not made within the discount period, is

A business sells merchandise, $850, plus 4 percent sales tax, and the customer used a bank charge card. The discount charged by the bank is 3 percent of the total of sales plus sales tax. The amount recorded in the Sales Tax Payable Credit column of its cash receipt journal is:

Credit card receipts, cash, checks, electronic funds transfers are all examples of source documents that would be recorded in the following 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

If the terms of sale are 1/10, n/30, the buyer has thirty days after the date of the invoice to take advantage of a 1 percent cash discount.

Which of the following accounts are considered contra accounts?

Collection of a sale on account is recorded in the sales journal.

The agreement between a seller and a buyer about payment on a purchase is called

What are the advantages of using a cash receipts journal and cash payments journal?

Entries in the Accounts Payable Debit column of the cash payments journal are posted daily to the accounts payable ledger.

A written promise to pay a specified amount at a specified time

If a part of merchandise previously sold is returned, the cash discount is calculated on the amount left after the return.

A business sells merchandise, $500, on account with terms of 1/20, n/60. The customer pays within the discount period. The amount recorded in the Cash Debit column is:

The Sales Discounts account is recorded on the books of the seller.

Sales Discounts and Sales Returns and Allowances have the following characteristics in common:

The following transactions were completed by Aquamarine Supplies during the second half of May. Terms of sale are 1/10, n/30. ​ ​ Instructions: Record the transactions for the second half of May, using a cash receipts journal or a cash payments journal.

Which of the following journals has end-of-the-month postings?

Explain why a business would choose to use special journals. Must a business open all four special journals in order to use special journals?

The Credit Card Expense column would most likely be found in

The amount a customer can deduct if the bill is paid within a specific period of time is called a

Purchase of merchandise for cash would be recorded in which journal?

Barnes Company purchased merchandise on account, $3,500, with terms 3/10, n/30. The entry required of Barnes Company to record the transaction in the cash payments journal, assuming payment is not made within the discount period, is

A business sells merchandise, $850, plus 4 percent sales tax, and the customer used a bank charge card. The discount charged by the bank is 3 percent of the total of sales plus sales tax. The amount recorded in the Sales Tax Payable Credit column of its cash receipt journal is:

Credit card receipts, cash, checks, electronic funds transfers are all examples of source documents that would be recorded in the following 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

The following transactions were completed by Aquamarine Supplies during the second half of May. Terms of sale are 1/10, n/30. Instructions: Record the transactions for the second half of May, using a cash receipts journal or a cash payments journal.