Question 1

An account in which to record the fee charged by banks on a firm's credit card sales

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 2

You will never find the following combination of accounts in a journal entry except

Accepted Answer

A)  Accounts Receivable and Purchases. 
B)  Accounts Payable and Sales. 
C)  Sales Returns and Allowances and Accounts Payable. 
D)  Purchases Returns and Allowances and Accounts Payable. 
E)  Accounts Payable and Accounts Receivable. 
A)  Accounts Receivable and Purchases. 
B)  Accounts Payable and Sales. 
C)  Sales Returns and Allowances and Accounts Payable. 
D)  Purchases Returns and Allowances and Accounts Payable. 
E)  Accounts Payable and Accounts Receivable.

Question 3

Reduction from the invoice price for prompt payment

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 4

An "X" below the total amount of the Other Accounts column in the Cash Payment journal means

Accepted Answer

A)  The column is in balance. 
B)  The column needs to be posted to the ledger. 
C)  Do not post the column total. 
D)  All checks posted are accounted for. 
A)  The column is in balance. 
B)  The column needs to be posted to the ledger. 
C)  Do not post the column total. 
D)  All checks posted are accounted for.

Question 5

Indicate the appropriate columns in which the following transaction would be recorded in the cash payment journal: Paid rent for the month of January.

Accepted Answer

A)  
$\begin{array} { l l } 
\text { Accounts Payable } & \text { DR } \
\text { Cash } & \text { CR }
\end{array}$ 
B) 
$\begin{array} { l l } 
\text { Other Accounts } & \text { DR } \
\text { Cash } & \mathrm { CR }
\end{array}$ 
C)  
$\begin{array} { l r } 
\text { Cash } & \text { DR } \
\text { Other Accounts } & \text { CR }
\end{array}$ 
D)  
$\text { Cash } \quad \text { DR }$
$\text { Accounts Payable } \quad \mathrm{CR}$ 
A)  
$\begin{array} { l l } 
\text { Accounts Payable } & \text { DR } \
\text { Cash } & \text { CR }
\end{array}$ 
B) 
$\begin{array} { l l } 
\text { Other Accounts } & \text { DR } \
\text { Cash } & \mathrm { CR }
\end{array}$ 
C)  
$\begin{array} { l r } 
\text { Cash } & \text { DR } \
\text { Other Accounts } & \text { CR }
\end{array}$ 
D)  
$\text { Cash } \quad \text { DR }$
$\text { Accounts Payable } \quad \mathrm{CR}$

Question 6

Merchandise costing $2,500 FOB shipping point, terms 1/10, n/30, with prepaid transportation costs of $130, is purchased on account. If the bill is paid within ten days, the amount of the purchase discount is $26.30.

Accepted Answer

A) True 
 B)False

Question 7

Sales Discounts would appear as a Debit column in which special journal

Accepted Answer

A)  purchases journal. 
B)  general journal. 
C)  sales journal. 
D)  cash payments journal. 
E)  cash receipts journal. 
A)  purchases journal. 
B)  general journal. 
C)  sales journal. 
D)  cash payments journal. 
E)  cash receipts journal.

Question 8

An (X) below a column means the total is not to be posted.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT an advantage of the Cash Payment Journal?

Accepted Answer

A)  Transactions are recorded on one line. 
B)  Transactions involving credits to cash are recorded in one place. 
C)  Special columns are not used in this journal. 
D)  The Cash credit side can be posted as one total. 
A)  Transactions are recorded on one line. 
B)  Transactions involving credits to cash are recorded in one place. 
C)  Special columns are not used in this journal. 
D)  The Cash credit side can be posted as one total.

Question 10

Match between columns
                        Premises:  Special journal used to record all transactions where cash is received
 Special journal used for recording transactions decreasing cash
 A written promise to pay a specified amount at a specified time
Agreement between seller and buyer on payment
 Reduction from the invoice price for prompt payment
 An account in which to record the fee charged by banks on a firm's credit card sales
 The time period within which the buyer should pay for his or her charge purchase
 Large reduction from the list price that is not recorded on the books of the buyer
 Reduction from the invoice price for prompt payment as recorded on the books of the seller
 Reduction from the invoice price for prompt payment as recorded on the books of the buyer

Accepted Answer

The Answer of Purchases discount and Cash discount and Trade is...

Question 11

If merchandise bought on account has a list price of $5,000, with a trade discount of 25% and credit terms of 1/10, n/30, what is the amount to be credited to Accounts Payable?

Accepted Answer

A)  $5,000 
B)  $3,750 
C)  $3,712.50 
D)  $3,787.50 
A)  $5,000 
B)  $3,750 
C)  $3,712.50 
D)  $3,787.50

Question 12

If merchandise is bought with a list price of $2,800, subject to a 30 percent trade discount and a cash discount of 2/10, n/30, the amount debited to Purchases is $1,920.80.

Accepted Answer

A) True 
 B)False

Question 13

Column titles for a cash receipts journal may be

Accepted Answer

A)  Cash Debit, Sales Discounts Debit, Sales Credit, Accounts Receivable Credit, and Other Accounts Debit. 
B)  Cash Debit, Sales Discounts Debit, Sales Credit, Accounts Receivable Credit, and Other Accounts Credit. 
C)  Cash Debit, Sales Discounts Credit, Sales Credit, Accounts Receivable Debit, and Other Accounts Credit. 
D)  Cash Debit, Sales Discounts Debit, Sales Debit, Accounts Receivable Credit, and Other Accounts Credit. 
E)  Cash Credit, Accounts Receivable Credit, and Other Accounts Debit. 
A)  Cash Debit, Sales Discounts Debit, Sales Credit, Accounts Receivable Credit, and Other Accounts Debit. 
B)  Cash Debit, Sales Discounts Debit, Sales Credit, Accounts Receivable Credit, and Other Accounts Credit. 
C)  Cash Debit, Sales Discounts Credit, Sales Credit, Accounts Receivable Debit, and Other Accounts Credit. 
D)  Cash Debit, Sales Discounts Debit, Sales Debit, Accounts Receivable Credit, and Other Accounts Credit. 
E)  Cash Credit, Accounts Receivable Credit, and Other Accounts Debit.

Question 14

The time the seller allows the buyer to make a full payment is the

Accepted Answer

A)  Credit Discount 
B)  Payment Period 
C)  Credit Period 
D)  None of the above 
A)  Credit Discount 
B)  Payment Period 
C)  Credit Period 
D)  None of the above

Question 15

The following transactions were completed by Figureroa Supplies during the first half of May. Terms of sale are 2/10, n/30.
Instructions:
Record the transactions for the first half of May, using a general journal.

Accepted Answer

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

Question 16

Which of the following statements is NOT true?

Accepted Answer

A)  Sales Discounts is a contra-revenue. 
B)  Freight costs are included when determining discounts. 
C)  Sales Returns & Allowances has a DR normal balance. 
D)  Purchase Discounts is a contra account. 
A)  Sales Discounts is a contra-revenue. 
B)  Freight costs are included when determining discounts. 
C)  Sales Returns & Allowances has a DR normal balance. 
D)  Purchase Discounts is a contra account.

Question 17

Indicate the journal in which each of the following transactions should be recorded. Assume a three-column purchases journal.

Accepted Answer

The answer of Indicate the journal in which each of...

Question 18

What is the journal entry to record the receipt of payment on June 15th for the following: June 1st, merchandise sold on account in the amount of $525, credit terms 1/10, n/30.

Accepted Answer

A)  
$\text { Accounts Receivable } \quad 525 \mathrm{DR}$
$\text { Cash } \quad 525 \mathrm{CR}$ 
B) 
 Cash $\quad\quad525 \mathrm { CR }$
Accounts Receivable$\quad525 \mathrm { CR }$ 
C)  
$\begin{array} { l r r } 
\text { Accounts Receivable } & 519.75 \mathrm { DR } & \
\text { Sales Discount } & 5.25 \mathrm { DR } & \
\quad \text { Cash } & & 525 \mathrm { CR }
\end{array}$ 
D)  
$\begin{array} { l r r } 
\text { Cash } & 525 \mathrm { DR } & \
\text { Sales Discount } & & 5.25 \mathrm { CR } \
\quad \text { Accounts Receivable } & & 519.75 \mathrm { CR }
\end{array}$ 
A)  
$\text { Accounts Receivable } \quad 525 \mathrm{DR}$
$\text { Cash } \quad 525 \mathrm{CR}$ 
B) 
 Cash $\quad\quad525 \mathrm { CR }$
Accounts Receivable$\quad525 \mathrm { CR }$ 
C)  
$\begin{array} { l r r } 
\text { Accounts Receivable } & 519.75 \mathrm { DR } & \
\text { Sales Discount } & 5.25 \mathrm { DR } & \
\quad \text { Cash } & & 525 \mathrm { CR }
\end{array}$ 
D)  
$\begin{array} { l r r } 
\text { Cash } & 525 \mathrm { DR } & \
\text { Sales Discount } & & 5.25 \mathrm { CR } \
\quad \text { Accounts Receivable } & & 519.75 \mathrm { CR }
\end{array}$

Question 19

It is much more important to post daily to the subsidiary ledger than to post daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 20

The time period within which the buyer should pay for his or her charge purchase

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

An account in which to record the fee charged by banks on a firm's credit card sales

You will never find the following combination of accounts in a journal entry except

Reduction from the invoice price for prompt payment

An "X" below the total amount of the Other Accounts column in the Cash Payment journal means

Indicate the appropriate columns in which the following transaction would be recorded in the cash payment journal: Paid rent for the month of January.

Merchandise costing $2,500 FOB shipping point, terms 1/10, n/30, with prepaid transportation costs of $130, is purchased on account. If the bill is paid within ten days, the amount of the purchase discount is $26.30.

Sales Discounts would appear as a Debit column in which special journal

An (X) below a column means the total is not to be posted.

Which of the following is NOT an advantage of the Cash Payment Journal?

If merchandise bought on account has a list price of $5,000, with a trade discount of 25% and credit terms of 1/10, n/30, what is the amount to be credited to Accounts Payable?

If merchandise is bought with a list price of $2,800, subject to a 30 percent trade discount and a cash discount of 2/10, n/30, the amount debited to Purchases is $1,920.80.

Column titles for a cash receipts journal may be

The time the seller allows the buyer to make a full payment is the

The following transactions were completed by Figureroa Supplies during the first half of May. Terms of sale are 2/10, n/30. Instructions: Record the transactions for the first half of May, using a general journal.

Which of the following statements is NOT true?

Indicate the journal in which each of the following transactions should be recorded. Assume a three-column purchases journal.

What is the journal entry to record the receipt of payment on June 15th for the following: June 1st, merchandise sold on account in the amount of $525, credit terms 1/10, n/30.

It is much more important to post daily to the subsidiary ledger than to post daily to the general ledger.

The time period within which the buyer should pay for his or her charge purchase

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

An account in which to record the fee charged by banks on a firm's credit card sales

You will never find the following combination of accounts in a journal entry except

Reduction from the invoice price for prompt payment

An "X" below the total amount of the Other Accounts column in the Cash Payment journal means

Indicate the appropriate columns in which the following transaction would be recorded in the cash payment journal: Paid rent for the month of January.

Merchandise costing $2,500 FOB shipping point, terms 1/10, n/30, with prepaid transportation costs of $130, is purchased on account. If the bill is paid within ten days, the amount of the purchase discount is $26.30.

Sales Discounts would appear as a Debit column in which special journal

An (X) below a column means the total is not to be posted.

Which of the following is NOT an advantage of the Cash Payment Journal?

If merchandise bought on account has a list price of $5,000, with a trade discount of 25% and credit terms of 1/10, n/30, what is the amount to be credited to Accounts Payable?

If merchandise is bought with a list price of $2,800, subject to a 30 percent trade discount and a cash discount of 2/10, n/30, the amount debited to Purchases is $1,920.80.

Column titles for a cash receipts journal may be

The time the seller allows the buyer to make a full payment is the

The following transactions were completed by Figureroa Supplies during the first half of May. Terms of sale are 2/10, n/30. Instructions: Record the transactions for the first half of May, using a general journal.

Which of the following statements is NOT true?

Indicate the journal in which each of the following transactions should be recorded. Assume a three-column purchases journal.

What is the journal entry to record the receipt of payment on June 15th for the following: June 1st, merchandise sold on account in the amount of $525, credit terms 1/10, n/30.

It is much more important to post daily to the subsidiary ledger than to post daily to the general ledger.

The time period within which the buyer should pay for his or her charge purchase

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