Question 1

When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.

Accepted Answer

A) True 
 B)False  True

Question 2

If the perpetual inventory system is used, an account called Cost of Goods Sold id included in the general ledger.

Accepted Answer

A) True 
 B)False  True

Question 3

The entries in a purchases journal are posted to which of the following subsidiary ledger?

Accepted Answer

A) Accounts receivable 
B) Sales 
C) Purchases 
D) Inventory 
E) Accounts payable 
A) Accounts receivable 
B) Sales 
C) Purchases 
D) Inventory 
E) Accounts payable E

Question 4

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

Accepted Answer

A) entries in subsidiary ledgers. 
B) columns in special journals. 
C) accounts in the general ledger. 
D) all of these. 
E) none of these. 
A) entries in subsidiary ledgers. 
B) columns in special journals. 
C) accounts in the general ledger. 
D) all of these. 
E) none of these.

Question 5

What is the difference between a periodic and perpetual inventory system for merchandise inventory?

Accepted Answer

The periodic inventory system requires t

Question 6

When goods previously purchased on account are returned for credit, the journal entry is

Accepted Answer

A) debit Accounts Payable; credit Purchases Returns and Allowances. 
B) debit Purchases Returns and Allowances; credit Accounts Payable. 
C) debit Purchases; credit Purchases Returns and Allowances. 
D) debit Accounts Receivable; credit Purchases Returns and Allowances. 
E) debit Purchases Returns and Allowances; credit Accounts Receivable. 
A) debit Accounts Payable; credit Purchases Returns and Allowances. 
B) debit Purchases Returns and Allowances; credit Accounts Payable. 
C) debit Purchases; credit Purchases Returns and Allowances. 
D) debit Accounts Receivable; credit Purchases Returns and Allowances. 
E) debit Purchases Returns and Allowances; credit Accounts Receivable.

Question 7

Jones Co. sells merchandise to J. Smith on account. As the seller Jones Co. pays the cost of transportation to delivery the goods and will not be reimbursed from J. Smith. This is an example of:

Accepted Answer

A) FOB Destination 
B) FOB Shipping Point 
C) Freight-In 
D) Freight-Out 
A) FOB Destination 
B) FOB Shipping Point 
C) Freight-In 
D) Freight-Out

Question 8

What are the four most commonly used special journals, and what are they used for?

Accepted Answer

Sales journal - Used to record sales of

Question 9

Match the terms below with the correct definitions.
  
-Title or ownership changes hands when the buyer receives the goods.

Accepted Answer

The answer of Match the terms below with the correct...

Question 10

Transactions in the sales journal are posted both to the general ledger and the accounts receivable ledger.

Accepted Answer

A) True 
 B)False

Question 11

The total of goods sold on account is normally posted daily from the sales journal to the general ledger.

Accepted Answer

A) True 
 B)False

Question 12

The individual amounts in the Accounts Payable Credit column of the purchases journal are posted

Accepted Answer

A) individually to the Accounts Payable account in the general ledger. 
B) individually to the accounts payable ledger. 
C) individually to the Purchases account in the general ledger. 
D) in total to the accounts payable ledger. 
E) in total to the accounts receivable ledger. 
A) individually to the Accounts Payable account in the general ledger. 
B) individually to the accounts payable ledger. 
C) individually to the Purchases account in the general ledger. 
D) in total to the accounts payable ledger. 
E) in total to the accounts receivable ledger.

Question 13

Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms below with the correct definitions.
  
-Account used to record the reduction in sales due to either the physical return of goods or defective goods

Accepted Answer

The answer of Match the terms below with the correct...

Question 15

XYZ Motors makes a sale of $15,600 on account. The sales tax rate is 8%. What is the amount debited to Accounts Receivable?

Accepted Answer

A) $1,248 
B) $15,600 
C) $14,352 
D) $16,848 
A) $1,248 
B) $15,600 
C) $14,352 
D) $16,848

Question 16

A contra-revenue account to record returned goods is:

Accepted Answer

A) Freight-In 
B) Purchases Returns and Allowances 
C) Sales Returns and Allowances 
D) Sales Discounts 
A) Freight-In 
B) Purchases Returns and Allowances 
C) Sales Returns and Allowances 
D) Sales Discounts

Question 17

The accounts payable ledger has postings from which of the following sets of journals?

Accepted Answer

A) Purchases, cash payments, and general 
B) Purchases, cash receipts, and general 
C) Purchases and sales 
D) Cash payments and sales 
E) Sales and cash payments 
A) Purchases, cash payments, and general 
B) Purchases, cash receipts, and general 
C) Purchases and sales 
D) Cash payments and sales 
E) Sales and cash payments

Question 18

A single summarizing account in the general ledger, representing all the accounts in a particular subsidiary ledger, is referred to as a

Accepted Answer

A) response account. 
B) summary account. 
C) special account. 
D) pass-through account. 
E) controlling account. 
A) response account. 
B) summary account. 
C) special account. 
D) pass-through account. 
E) controlling account.

Question 19

Account type and normal balance of the Purchases Account:

Accepted Answer

A) Asset, DR 
B) Asset, CR 
C) Expense, DR 
D) Expense, CR 
A) Asset, DR 
B) Asset, CR 
C) Expense, DR 
D) Expense, CR

Question 20

Match the terms below with the correct definitions.
  
-Special journal used for recording the purchase of merchandise on account only

Accepted Answer

The answer of Match the terms below with the correct...

When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.

If the perpetual inventory system is used, an account called Cost of Goods Sold id included in the general ledger.

The entries in a purchases journal are posted to which of the following subsidiary ledger?

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

What is the difference between a periodic and perpetual inventory system for merchandise inventory?

When goods previously purchased on account are returned for credit, the journal entry is

Jones Co. sells merchandise to J. Smith on account. As the seller Jones Co. pays the cost of transportation to delivery the goods and will not be reimbursed from J. Smith. This is an example of:

What are the four most commonly used special journals, and what are they used for?

Match the terms below with the correct definitions. -Title or ownership changes hands when the buyer receives the goods.

Transactions in the sales journal are posted both to the general ledger and the accounts receivable ledger.

The total of goods sold on account is normally posted daily from the sales journal to the general ledger.

The individual amounts in the Accounts Payable Credit column of the purchases journal are posted

Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.

Match the terms below with the correct definitions. -Account used to record the reduction in sales due to either the physical return of goods or defective goods

XYZ Motors makes a sale of $15,600 on account. The sales tax rate is 8%. What is the amount debited to Accounts Receivable?

A contra-revenue account to record returned goods is:

The accounts payable ledger has postings from which of the following sets of journals?

A single summarizing account in the general ledger, representing all the accounts in a particular subsidiary ledger, is referred to as a

Account type and normal balance of the Purchases Account:

Match the terms below with the correct definitions. -Special journal used for recording the purchase of merchandise on account only

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

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Filters

Exam 9: Sales and Purchases

When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.

If the perpetual inventory system is used, an account called Cost of Goods Sold id included in the general ledger.

The entries in a purchases journal are posted to which of the following subsidiary ledger?

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

What is the difference between a periodic and perpetual inventory system for merchandise inventory?

When goods previously purchased on account are returned for credit, the journal entry is

Jones Co. sells merchandise to J. Smith on account. As the seller Jones Co. pays the cost of transportation to delivery the goods and will not be reimbursed from J. Smith. This is an example of:

What are the four most commonly used special journals, and what are they used for?

Match the terms below with the correct definitions. -Title or ownership changes hands when the buyer receives the goods.

Transactions in the sales journal are posted both to the general ledger and the accounts receivable ledger.

The total of goods sold on account is normally posted daily from the sales journal to the general ledger.

The individual amounts in the Accounts Payable Credit column of the purchases journal are posted

Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.

Match the terms below with the correct definitions. -Account used to record the reduction in sales due to either the physical return of goods or defective goods

XYZ Motors makes a sale of $15,600 on account. The sales tax rate is 8%. What is the amount debited to Accounts Receivable?

A contra-revenue account to record returned goods is:

The accounts payable ledger has postings from which of the following sets of journals?

A single summarizing account in the general ledger, representing all the accounts in a particular subsidiary ledger, is referred to as a

Account type and normal balance of the Purchases Account:

Match the terms below with the correct definitions. -Special journal used for recording the purchase of merchandise on account only

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

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Filters