A) Price reductions for bartered services B) Price reductions from list prices C) Price reductions from net prices D) Price reductions for companies that trade goods and services A) Price reductions for bartered services B) Price reductions from list prices C) Price reductions from net prices D) Price reductions for companies that trade goods and services

Exam 10: Cash Receipts and Cash Payments

A business sells merchandise, $700, plus 6 percent sales tax, and the customer used a bank charge card. The discount charged by the bank is 4 percent of the total of sales plus sales tax. The amount recorded in the Sales Tax Payable Credit column is

(Multiple Choice)

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Question 41

The main reason that special journals are used is because they

(Multiple Choice)

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Question 42

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.

(True/False)

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Question 43

Match the terms below with the correct definitions. -An account in which to record the fee charged by banks on a firm's credit card sales

(Short Answer)

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Question 44

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

(Multiple Choice)

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Question 45

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

(True/False)

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Question 46

Transactions that increase the amount of cash are recorded in the cash payments journal.

(True/False)

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Question 47

The design of a cash payments journal can help the accountant reduce the number of postings required.

(True/False)

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Question 48

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

(Essay)

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Question 49

On October 30, goods with a list price of $9,500 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 recorded in the Sales Discounts Debit column on November 5 is

(Multiple Choice)

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Question 50

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

(Multiple Choice)

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Question 51

Trade discounts are

(Multiple Choice)

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Question 52

Most computer accounting software packages allow businesses to

(Multiple Choice)

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(78)

Question 53

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

(True/False)

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(83)

Question 54

Match the terms below with the correct definitions. -Special journal used to record all transactions where cash is received

(Short Answer)

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Question 55

The special journal that is used to record all transactions when cash decreases.

(Multiple Choice)

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Question 56

Match the terms below with the correct definitions. -Special journal used for recording transactions decreasing cash

(Short Answer)

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(81)

Question 57

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

(True/False)

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(83)

Question 58

Sales of merchandise on account would be recorded in which journal?

(Multiple Choice)

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Question 59

Match the terms below with the correct definitions. -A written promise to pay a specified amount at a specified time

(Short Answer)

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Question 60

Showing 41 - 60 of 106

A business sells merchandise, $700, plus 6 percent sales tax, and the customer used a bank charge card. The discount charged by the bank is 4 percent of the total of sales plus sales tax. The amount recorded in the Sales Tax Payable Credit column is

The main reason that special journals are used is because they

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.

Match the terms below with the correct definitions. -An account in which to record the fee charged by banks on a firm's credit card sales

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

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

Transactions that increase the amount of cash are recorded in the cash payments journal.

The design of a cash payments journal can help the accountant reduce the number of postings required.

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

On October 30, goods with a list price of $9,500 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 recorded in the Sales Discounts Debit column on November 5 is

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

Trade discounts are

Most computer accounting software packages allow businesses to

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

Match the terms below with the correct definitions. -Special journal used to record all transactions where cash is received

The special journal that is used to record all transactions when cash decreases.

Match the terms below with the correct definitions. -Special journal used for recording transactions decreasing cash

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

Sales of merchandise on account would be recorded in which journal?

Match the terms below with the correct definitions. -A written promise to pay a specified amount at a specified time

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 Including Appendix

Bank Accounts and Cash Funds

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

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