Question 1

An (X) at the bottom of an Other Accounts column indicates that the total

Accepted Answer

A) is not to be posted because figures have been posted separately. 
B) has been posted to the controlling account. 
C) has been posted at the end of the month. 
D) has been posted to the subsidiary ledger. 
E) is incorrect. 
A) is not to be posted because figures have been posted separately. 
B) has been posted to the controlling account. 
C) has been posted at the end of the month. 
D) has been posted to the subsidiary ledger. 
E) is incorrect.

Question 2

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, page 8.

Accepted Answer

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

Question 3

Carlyle Company sold goods for $425 plus a 7 percent sales tax to a customer using a bank credit card. The bank deducts a 3 percent discount. Carlyle Company debits Cash for

Accepted Answer

A) $441.11. 
B) $412.25. 
C) $454.75. 
D) $437.75. 
E) $468.50. 
A) $441.11. 
B) $412.25. 
C) $454.75. 
D) $437.75. 
E) $468.50.

Question 4

Which of the following is not an advantage of the cash receipts journal?

Accepted Answer

A) Transactions can be recorded on one line. 
B) Transactions involving debits to cash are recorded in one place. 
C) Special columns are not used in the cash receipts journal. 
D) Posting repetition is eliminated. 
A) Transactions can be recorded on one line. 
B) Transactions involving debits to cash are recorded in one place. 
C) Special columns are not used in the cash receipts journal. 
D) Posting repetition is eliminated.

Question 5

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

Accepted Answer

The advantage of using a cash receipts j

Question 6

A business sells merchandise, $600, on account with terms of 1/15, n/60. The customer pays within the discount period. The amount recorded in the Cash Debit column is

Accepted Answer

A) $594.00. 
B) $606.00. 
C) $576.00. 
D) $612.00. 
E) $586.56. 
A) $594.00. 
B) $606.00. 
C) $576.00. 
D) $612.00. 
E) $586.56.

Question 7

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 8

Proving the equality of debits and credits in a journal should be done after end-of-the-month posting.

Accepted Answer

A) True 
 B)False

Question 9

On October 30, goods with a list price of $10,500 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 Credit column on October 30 is

Accepted Answer

A) $10,500. 
B) $10,290. 
C) $7,875. 
D) $7,717.50. 
E) $2,625. 
A) $10,500. 
B) $10,290. 
C) $7,875. 
D) $7,717.50. 
E) $2,625.

Question 10

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 11

Trade discounts are

Accepted Answer

A) granted for prompt payment. 
B) granted in addition to the discount for prompt payment. 
C) recorded only on the buyer's books. 
D) recorded only on the seller's books. 
E) recorded on the books of both the buyer and the seller. 
A) granted for prompt payment. 
B) granted in addition to the discount for prompt payment. 
C) recorded only on the buyer's books. 
D) recorded only on the seller's books. 
E) recorded on the books of both the buyer and the seller.

Question 12

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 13

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 14

What does the "2" in 2/10, n/30 mean?

Accepted Answer

A) The credit period 
B) Discount taken if paid within 10 days 
C) Discount taken if paid within 30 days 
D) The due date 
A) The credit period 
B) Discount taken if paid within 10 days 
C) Discount taken if paid within 30 days 
D) The due date

Question 15

The listing of cash discounts is not a part of the credit terms.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Transactions do not need to be recorded in the general journal before they can be recorded in the special journals.

Accepted Answer

A) True 
 B)False

Question 18

In the cash receipts journal, the individual amounts in the Other Accounts column are posted at the end of the month.

Accepted Answer

A) True 
 B)False

Question 19

The Purchases Discounts account is recorded on the books of both the seller and the purchaser.

Accepted Answer

A) True 
 B)False

Question 20

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.

An (X) at the bottom of an Other Accounts column indicates that the total

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, page 8.

Carlyle Company sold goods for $425 plus a 7 percent sales tax to a customer using a bank credit card. The bank deducts a 3 percent discount. Carlyle Company debits Cash for

Which of the following is not an advantage of the cash receipts journal?

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

A business sells merchandise, $600, on account with terms of 1/15, n/60. The customer pays within the discount period. The amount recorded in the Cash Debit column is

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

Proving the equality of debits and credits in a journal should be done after end-of-the-month posting.

On October 30, goods with a list price of $10,500 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 Credit column on October 30 is

Which of the following accounts are considered contra accounts?

Trade discounts are

A characteristic of the Sales Discount account is:

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

What does the "2" in 2/10, n/30 mean?

The listing of cash discounts is not a part of the credit terms.

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.

Transactions do not need to be recorded in the general journal before they can be recorded in the special journals.

In the cash receipts journal, the individual amounts in the Other Accounts column are posted at the end of the month.

The Purchases Discounts account is recorded on the books of both the seller and the purchaser.

Which of the following statements is NOT true?

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

Filters

Exam 10: Cash Receipts and Cash Payments

An (X) at the bottom of an Other Accounts column indicates that the total

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, page 8.

Carlyle Company sold goods for $425 plus a 7 percent sales tax to a customer using a bank credit card. The bank deducts a 3 percent discount. Carlyle Company debits Cash for

Which of the following is not an advantage of the cash receipts journal?

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

A business sells merchandise, $600, on account with terms of 1/15, n/60. The customer pays within the discount period. The amount recorded in the Cash Debit column is

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

Proving the equality of debits and credits in a journal should be done after end-of-the-month posting.

On October 30, goods with a list price of $10,500 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 Credit column on October 30 is

Which of the following accounts are considered contra accounts?

Trade discounts are

A characteristic of the Sales Discount account is:

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

What does the "2" in 2/10, n/30 mean?

The listing of cash discounts is not a part of the credit terms.

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.

Transactions do not need to be recorded in the general journal before they can be recorded in the special journals.

In the cash receipts journal, the individual amounts in the Other Accounts column are posted at the end of the month.

The Purchases Discounts account is recorded on the books of both the seller and the purchaser.

Which of the following statements is NOT true?

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

Filters