Question 1

Which of the following transactions would be recorded in a multicolumn purchases journal?

Accepted Answer

A) Credit purchase of supplies. 
B) Credit purchase of equipment. 
C) Credit purchase of merchandise for resale to customers. 
D) All of these choices. 
A) Credit purchase of supplies. 
B) Credit purchase of equipment. 
C) Credit purchase of merchandise for resale to customers. 
D) All of these choices. D

Question 2

The sales journal

Accepted Answer

A) is designed to handle all cash and credit sales. 
B) requires that account names be written out for each debit and credit. 
C) requires a brief explanation for each transaction. 
D) requires that only one amount,total credit sales for the month,be posted. 
A) is designed to handle all cash and credit sales. 
B) requires that account names be written out for each debit and credit. 
C) requires a brief explanation for each transaction. 
D) requires that only one amount,total credit sales for the month,be posted. D

Question 3

Special purpose journals promote

Accepted Answer

A) economy and control. 
B) faithful representation and relevance. 
C) relevance and timeliness. 
D) going concern and periodicity. 
A) economy and control. 
B) faithful representation and relevance. 
C) relevance and timeliness. 
D) going concern and periodicity. A

Question 4

The cash payments journal would normally post a

Accepted Answer

A) debit to Cash. 
B) credit to Purchases Discounts. 
C) credit to Accounts Payable. 
D) credit to Advertising Expense. 
A) debit to Cash. 
B) credit to Purchases Discounts. 
C) credit to Accounts Payable. 
D) credit to Advertising Expense.

Question 5

When a company uses an accounts receivable subsidiary ledger,

Accepted Answer

A) it need not maintain an Accounts Receivable account in the general ledger. 
B) credit sales transactions must be posted to the individual customers' accounts monthly. 
C) when the amounts in the subsidiary ledger and the controlling account do not match,the accountant must find the error and correct it. 
D) All of these choices. 
A) it need not maintain an Accounts Receivable account in the general ledger. 
B) credit sales transactions must be posted to the individual customers' accounts monthly. 
C) when the amounts in the subsidiary ledger and the controlling account do not match,the accountant must find the error and correct it. 
D) All of these choices.

Question 6

The total of the balances in the subsidiary ledger accounts equals the balance in the corresponding controlling account.

Accepted Answer

A) True 
 B)False

Question 7

The cash receipts journal

Accepted Answer

A) must have several columns,it cannot be a single-column journal. 
B) requires that the "Other Accounts" column total be posted daily and at the end of the month. 
C) can result in both debits and credits to cash,depending on the transaction. 
D) All of these choices. 
A) must have several columns,it cannot be a single-column journal. 
B) requires that the "Other Accounts" column total be posted daily and at the end of the month. 
C) can result in both debits and credits to cash,depending on the transaction. 
D) All of these choices.

Question 8

When special journals are used,the general journal is used to record

Accepted Answer

A) purchase returns. 
B) sales of merchandise on credit. 
C) receipts of cash. 
D) purchases on credit. 
A) purchase returns. 
B) sales of merchandise on credit. 
C) receipts of cash. 
D) purchases on credit.

Question 9

Describe at least 3 ways the sales journal saves time.

Accepted Answer

Ways the sales journal saves time: a.Onl

Question 10

The sales journal is used to handle all cash and credit sales.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following accounts would be credited in the cash payments journal?

Accepted Answer

A) Purchases Discounts. 
B) Accounts Payable. 
C) Salary Expense. 
D) Rent Expense. 
A) Purchases Discounts. 
B) Accounts Payable. 
C) Salary Expense. 
D) Rent Expense.

Question 12

The purchases journal is used to record only purchases made on credit.

Accepted Answer

A) True 
 B)False

Question 13

Special-purpose journals

Accepted Answer

A) can be an important part of establishing good internal control. 
B) require posting each debit and each credit for each transaction. 
C) can be used to record over 99% of most business transactions. 
D) include the sales journal and the adjusting entries journal. 
A) can be an important part of establishing good internal control. 
B) require posting each debit and each credit for each transaction. 
C) can be used to record over 99% of most business transactions. 
D) include the sales journal and the adjusting entries journal.

Question 14

When special-purpose journals are used,which of the following is an entry that would be recorded in the general journal rather than in a special journal?

Accepted Answer

A) Sale of merchandise on account. 
B) Cash purchase of merchandise for resale. 
C) A return of merchandise bought on account. 
D) Cash receipt from a customer for payment on their account. 
A) Sale of merchandise on account. 
B) Cash purchase of merchandise for resale. 
C) A return of merchandise bought on account. 
D) Cash receipt from a customer for payment on their account.

Question 15

All transactions involving receipts of cash are recorded in the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 16

On April 12,Vancouver Company accepted a return of $200 of merchandise purchased on account.This transaction will result in

Accepted Answer

A) a $200 credit to the controlling account,Accounts Receivable,and a $200 credit to the individual account in the subsidiary ledger. 
B) the subsidiary ledger total being $200 less than the controlling account total. 
C) a $200 debit to the subsidiary ledger and a $200 credit to the controlling account,Accounts Receivable. 
D) the subsidiary ledger total being $200 more than the controlling account total. 
A) a $200 credit to the controlling account,Accounts Receivable,and a $200 credit to the individual account in the subsidiary ledger. 
B) the subsidiary ledger total being $200 less than the controlling account total. 
C) a $200 debit to the subsidiary ledger and a $200 credit to the controlling account,Accounts Receivable. 
D) the subsidiary ledger total being $200 more than the controlling account total.

Question 17

On April 12,Vancouver Company returned of $500 of merchandise it purchased on account from Rupert Co.This transaction will result in

Accepted Answer

A) a $500 debit to the controlling account,Accounts Payable,and a $500 debit to the individual account in the subsidiary ledger. 
B) the subsidiary ledger total being $500 less than the controlling account total. 
C) a $500 debit to the subsidiary ledger and a $500 credit to the controlling account,Accounts Payable. 
D) the subsidiary ledger total being $500 more than the controlling account total. 
A) a $500 debit to the controlling account,Accounts Payable,and a $500 debit to the individual account in the subsidiary ledger. 
B) the subsidiary ledger total being $500 less than the controlling account total. 
C) a $500 debit to the subsidiary ledger and a $500 credit to the controlling account,Accounts Payable. 
D) the subsidiary ledger total being $500 more than the controlling account total.

Question 18

When a company uses an accounts receivable subsidiary ledger,it cannot also maintain an Accounts Receivable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 19

If management wants specific information on individual items,a subsidiary ledger can be used for Notes Receivable and Equipment.

Accepted Answer

A) True 
 B)False

Question 20

Transactions involving payments of cash for merchandise are recorded in the cash payments journal.

Accepted Answer

A) True 
 B)False

Which of the following transactions would be recorded in a multicolumn purchases journal?

The sales journal

Special purpose journals promote

The cash payments journal would normally post a

When a company uses an accounts receivable subsidiary ledger,

The total of the balances in the subsidiary ledger accounts equals the balance in the corresponding controlling account.

The cash receipts journal

When special journals are used,the general journal is used to record

Describe at least 3 ways the sales journal saves time.

The sales journal is used to handle all cash and credit sales.

Which of the following accounts would be credited in the cash payments journal?

The purchases journal is used to record only purchases made on credit.

Special-purpose journals

When special-purpose journals are used,which of the following is an entry that would be recorded in the general journal rather than in a special journal?

All transactions involving receipts of cash are recorded in the cash receipts journal.

On April 12,Vancouver Company accepted a return of $200 of merchandise purchased on account.This transaction will result in

On April 12,Vancouver Company returned of $500 of merchandise it purchased on account from Rupert Co.This transaction will result in

When a company uses an accounts receivable subsidiary ledger,it cannot also maintain an Accounts Receivable account in the general ledger.

If management wants specific information on individual items,a subsidiary ledger can be used for Notes Receivable and Equipment.

Transactions involving payments of cash for merchandise are recorded in the cash payments journal.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 6: Supplement: Accounting for Merchandising Operations

Which of the following transactions would be recorded in a multicolumn purchases journal?

The sales journal

Special purpose journals promote

The cash payments journal would normally post a

When a company uses an accounts receivable subsidiary ledger,

The total of the balances in the subsidiary ledger accounts equals the balance in the corresponding controlling account.

The cash receipts journal

When special journals are used,the general journal is used to record

Describe at least 3 ways the sales journal saves time.

The sales journal is used to handle all cash and credit sales.

Which of the following accounts would be credited in the cash payments journal?

The purchases journal is used to record only purchases made on credit.

Special-purpose journals

When special-purpose journals are used,which of the following is an entry that would be recorded in the general journal rather than in a special journal?

All transactions involving receipts of cash are recorded in the cash receipts journal.

On April 12,Vancouver Company accepted a return of $200 of merchandise purchased on account.This transaction will result in

On April 12,Vancouver Company returned of $500 of merchandise it purchased on account from Rupert Co.This transaction will result in

When a company uses an accounts receivable subsidiary ledger,it cannot also maintain an Accounts Receivable account in the general ledger.

If management wants specific information on individual items,a subsidiary ledger can be used for Notes Receivable and Equipment.

Transactions involving payments of cash for merchandise are recorded in the cash payments journal.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters