Question 1

Cash sales are recorded in the sales journal.

Accepted Answer

A) True 
 B)False

Question 2

A controlling account can be found in the

Accepted Answer

A) general ledger. 
B) source documents. 
C) accounts receivable ledger. 
D) income statement. 
E) accounts payable ledger. 
A) general ledger. 
B) source documents. 
C) accounts receivable ledger. 
D) income statement. 
E) accounts payable ledger.

Question 3

The Sales Returns and Allowances account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 4

What is the correct entry to record sales tax collected:

Accepted Answer

A) Sales Tax Expense DR 
B) Sales Tax Expense CR 
C) Sales Tax Payable DR 
D) Sales Tax Payable CR 
A) Sales Tax Expense DR 
B) Sales Tax Expense CR 
C) Sales Tax Payable DR 
D) Sales Tax Payable CR

Question 5

Place an X in the column that indicates the journal in which each of the following transactions will be recorded in.

Accepted Answer

The answer of Place an X in the column that...

Question 6

Under the perpetual inventory system, the sale of goods is recorded with two entries. One entry debits Cash or Accounts Receivable and credits sales. The second entry

Accepted Answer

A) debits Cost of Goods Sold and credits Merchandise Inventory. 
B) debits Merchandise Inventory and credits Cost of Goods Sold. 
C) debits Cost of Goods Sold and credit Purchases. 
D) debits Purchases and credits Merchandise Inventory. 
E) debits Income Summary and credits Cost of Goods Sold. 
A) debits Cost of Goods Sold and credits Merchandise Inventory. 
B) debits Merchandise Inventory and credits Cost of Goods Sold. 
C) debits Cost of Goods Sold and credit Purchases. 
D) debits Purchases and credits Merchandise Inventory. 
E) debits Income Summary and credits Cost of Goods Sold.

Question 7

The invoice that is first prepared by the seller is called a sales invoice; the buyer calls the same invoice a purchase order.

Accepted Answer

A) True 
 B)False

Question 8

Torber bought goods from Kole Company. The next day, Torber returned the goods because they had a defect. Kole Company would record this as a(n)

Accepted Answer

A) sales return. 
B) sales discount. 
C) purchase discount. 
D) purchase return. 
E) abnormal sale. 
A) sales return. 
B) sales discount. 
C) purchase discount. 
D) purchase return. 
E) abnormal sale.

Question 9

A one-column sales journal may be used to record

Accepted Answer

A) sales of supplies on account. 
B) sales of goods on account. 
C) sales of goods for cash. 
D) sales of supplies for cash. 
E) collections on account. 
A) sales of supplies on account. 
B) sales of goods on account. 
C) sales of goods for cash. 
D) sales of supplies for cash. 
E) collections on account.

Question 10

The seller would record the return of merchandise sold on account in the sales journal.

Accepted Answer

A) True 
 B)False

Question 11

Type of account and normal balance of Sales Discount:

Accepted Answer

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

Question 12

The entries in the sales journal must also be posted individually to the

Accepted Answer

A) Accounts Receivable and Sales accounts. 
B) Sales account. 
C) accounts receivable ledger. 
D) Accounts Receivable controlling account. 
E) accounts payable ledger. 
A) Accounts Receivable and Sales accounts. 
B) Sales account. 
C) accounts receivable ledger. 
D) Accounts Receivable controlling account. 
E) accounts payable ledger.

Question 13

With FOB shipping point, the seller maintains ownership of the goods until the goods are delivered.

Accepted Answer

A) True 
 B)False

Question 14

If a customer purchases goods for $560 on account and later is issued a credit memorandum to receive credit for the return of $160 of goods, the balance due is

Accepted Answer

A) $160. 
B) $400. 
C) $560. 
D) $720. 
E) none of these. 
A) $160. 
B) $400. 
C) $560. 
D) $720. 
E) none of these.

Question 15

Match the terms below with the correct definitions.
  
-Group of accounts representing the details of a controlling account

Accepted Answer

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

Question 16

Match the terms below with the correct definitions.
  
-Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

Accepted Answer

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

Question 17

Smith Co. keeps a continuous record of their inventories and costs of goods. This is an example of a:

Accepted Answer

A) Perpetual Inventory System 
B) Periodic Inventory System 
C) Continuous Inventory System 
D) Re-evaluation Inventory System 
A) Perpetual Inventory System 
B) Periodic Inventory System 
C) Continuous Inventory System 
D) Re-evaluation Inventory System

Question 18

The following transactions relate to Hatfield Company, a furniture wholesaler, during August of this year. Terms of sale are 2/10, n/30. The company is located in Dallas, Texas.
   Instructions:
Record the transactions in the general journal (page 1) using the perpetual inventory system.

Accepted Answer

The answer of The following transactions relate to Hatfield Company,...

Question 19

A form used by business to inform customers that their account balance has been reduced is:

Accepted Answer

A) Debit Memorandum 
B) Credit Memorandum 
C) Adjustment Memorandum 
D) Sales Return and Allowance Memo 
A) Debit Memorandum 
B) Credit Memorandum 
C) Adjustment Memorandum 
D) Sales Return and Allowance Memo

Question 20

Match the terms below with the correct definitions.
  
-Buyer responsibility for paying the freight cost.

Accepted Answer

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

Cash sales are recorded in the sales journal.

A controlling account can be found in the

The Sales Returns and Allowances account normally has a debit balance.

What is the correct entry to record sales tax collected:

Place an X in the column that indicates the journal in which each of the following transactions will be recorded in.

Under the perpetual inventory system, the sale of goods is recorded with two entries. One entry debits Cash or Accounts Receivable and credits sales. The second entry

The invoice that is first prepared by the seller is called a sales invoice; the buyer calls the same invoice a purchase order.

Torber bought goods from Kole Company. The next day, Torber returned the goods because they had a defect. Kole Company would record this as a(n)

A one-column sales journal may be used to record

The seller would record the return of merchandise sold on account in the sales journal.

Type of account and normal balance of Sales Discount:

The entries in the sales journal must also be posted individually to the

With FOB shipping point, the seller maintains ownership of the goods until the goods are delivered.

If a customer purchases goods for $560 on account and later is issued a credit memorandum to receive credit for the return of $160 of goods, the balance due is

Match the terms below with the correct definitions. -Group of accounts representing the details of a controlling account

Match the terms below with the correct definitions. -Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

Smith Co. keeps a continuous record of their inventories and costs of goods. This is an example of a:

The following transactions relate to Hatfield Company, a furniture wholesaler, during August of this year. Terms of sale are 2/10, n/30. The company is located in Dallas, Texas. Instructions: Record the transactions in the general journal (page 1) using the perpetual inventory system.

A form used by business to inform customers that their account balance has been reduced is:

Match the terms below with the correct definitions. -Buyer responsibility for paying the freight cost.

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

Cash sales are recorded in the sales journal.

A controlling account can be found in the

The Sales Returns and Allowances account normally has a debit balance.

What is the correct entry to record sales tax collected:

Place an X in the column that indicates the journal in which each of the following transactions will be recorded in.

Under the perpetual inventory system, the sale of goods is recorded with two entries. One entry debits Cash or Accounts Receivable and credits sales. The second entry

The invoice that is first prepared by the seller is called a sales invoice; the buyer calls the same invoice a purchase order.

Torber bought goods from Kole Company. The next day, Torber returned the goods because they had a defect. Kole Company would record this as a(n)

A one-column sales journal may be used to record

The seller would record the return of merchandise sold on account in the sales journal.

Type of account and normal balance of Sales Discount:

The entries in the sales journal must also be posted individually to the

With FOB shipping point, the seller maintains ownership of the goods until the goods are delivered.

If a customer purchases goods for $560 on account and later is issued a credit memorandum to receive credit for the return of $160 of goods, the balance due is

Match the terms below with the correct definitions. -Group of accounts representing the details of a controlling account

Match the terms below with the correct definitions. -Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

Smith Co. keeps a continuous record of their inventories and costs of goods. This is an example of a:

The following transactions relate to Hatfield Company, a furniture wholesaler, during August of this year. Terms of sale are 2/10, n/30. The company is located in Dallas, Texas. Instructions: Record the transactions in the general journal (page 1) using the perpetual inventory system.

A form used by business to inform customers that their account balance has been reduced is:

Match the terms below with the correct definitions. -Buyer responsibility for paying the freight cost.

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