Question 1

What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit?

Accepted Answer

A)  $200 
B)  $160 
C)  $40 
D)  None of these answers are correct. 
A)  $200 
B)  $160 
C)  $40 
D)  None of these answers are correct.

Question 2

Refer to the Fruit & Company question. What is the amount credited to Inventory for the month?

Accepted Answer

The answer of Refer to the Fruit & Company question....

Question 3

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

Accepted Answer

Accounts receivable subsidiary ledger is

Question 4

Zach returned $195 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Zach pays the balance of his account after the discount period, how much should he pay?

Accepted Answer

A)  $202.95 
B)  $205.00 
C)  $195.00 
D)  $400.00 
A)  $202.95 
B)  $205.00 
C)  $195.00 
D)  $400.00

Question 5

Refer to the Fruit & Company question above. What amount would be debited to the AR control account for the month?

Accepted Answer

The answer of Refer to the Fruit & Company question...

Question 6

Refer to the Fruit & Company question above. What amount would the WMS Company owe at month end, assuming no payments were received?

Accepted Answer

The answer of Refer to the Fruit & Company question...

Question 7

Which account is used by management to keep track of possible customer dissatisfaction?

Accepted Answer

A)  Sales Returns and Allowances 
B)  Sales Discount 
C)  Sales 
D)  Cost of Goods Sold 
A)  Sales Returns and Allowances 
B)  Sales Discount 
C)  Sales 
D)  Cost of Goods Sold

Question 8

An example of a subsidiary ledger is the accounts receivable ledger.

Accepted Answer

A) True 
 B)False

Question 9

A customer returned merchandise for credit. This will be recorded with

Accepted Answer

A)  a credit to a liability account. 
B)  a debit to a liability account. 
C)  a credit to an asset account. 
D)  None of these are correct. 
A)  a credit to a liability account. 
B)  a debit to a liability account. 
C)  a credit to an asset account. 
D)  None of these are correct.

Question 10

A characteristic of Sales Returns and Allowances is that

Accepted Answer

A)  it has a debit balance. 
B)  it tracks returns from customers. 
C)  it is a contra-revenue account. 
D)  All of these answers are correct. 
A)  it has a debit balance. 
B)  it tracks returns from customers. 
C)  it is a contra-revenue account. 
D)  All of these answers are correct.

Question 11

Monica's Closet received payment in full for goods sold within the discount period on a $480 sales invoice, terms 2/10, n/30. Which entry records this transaction?

Accepted Answer

A)  Debit Accounts Receivable; credit Sales for $480 
B)  Debit Cash; credit Accounts Receivable for $480 
C)  Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Sales for $480 
D)  Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Accounts Receivable for $480 
A)  Debit Accounts Receivable; credit Sales for $480 
B)  Debit Cash; credit Accounts Receivable for $480 
C)  Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Sales for $480 
D)  Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Accounts Receivable for $480

Question 12

A characteristic of a schedule of accounts receivable is that

Accepted Answer

A)  it contains a list of customers' names with balances. 
B)  the total is equal to the accounts receivable control account at the end of the month. 
C)  it is prepared at the end of the month. 
D)  All of these answers are correct. 
A)  it contains a list of customers' names with balances. 
B)  the total is equal to the accounts receivable control account at the end of the month. 
C)  it is prepared at the end of the month. 
D)  All of these answers are correct.

Question 13

The accounts receivable subsidiary ledger shows the amount owed from each customer.

Accepted Answer

A) True 
 B)False

Question 14

The Payroll Journal is not considered a special journal.

Accepted Answer

A) True 
 B)False

Question 15

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Accepted Answer

A) True 
 B)False

Question 16

Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record the sale portion of this transaction as follows:

Accepted Answer

A)  debit Accounts Receivable $375; credit Sales $375. 
B)  debit Cash $375; credit Sales $375. 
C)  debit Accounts Receivable $371.25; debit Sales Discounts $3.75; credit Sales $375. 
D)  debit Sales $375; credit Accounts Receivable $375. 
A)  debit Accounts Receivable $375; credit Sales $375. 
B)  debit Cash $375; credit Sales $375. 
C)  debit Accounts Receivable $371.25; debit Sales Discounts $3.75; credit Sales $375. 
D)  debit Sales $375; credit Accounts Receivable $375.

Question 17

A credit memorandum is sent to a customer for the purpose of

Accepted Answer

A)  informing the customer an amount has been added to their account. 
B)  informing the customer an amount has been deducted from their account. 
C)  informing the customer they are terminated. 
D)  to inform the customer their account limit is being increased. 
A)  informing the customer an amount has been added to their account. 
B)  informing the customer an amount has been deducted from their account. 
C)  informing the customer they are terminated. 
D)  to inform the customer their account limit is being increased.

Question 18

The balance in the Accounts Receivable account is $2,100 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

Accepted Answer

A) True 
 B)False

Question 19

What does a check mark in the PR column of a journal indicate?

Accepted Answer

A)  An amount has been posted to the general ledger. 
B)  During the month the subsidiary ledger is updated. 
C)  An amount has been posted to the controlling account. 
D)  Nothing has to be posted until the end of the month for this transaction. 
A)  An amount has been posted to the general ledger. 
B)  During the month the subsidiary ledger is updated. 
C)  An amount has been posted to the controlling account. 
D)  Nothing has to be posted until the end of the month for this transaction.

Question 20

If a credit memorandum is issued, what account will be increased on the seller's books?

Accepted Answer

A)  Accounts Receivable 
B)  Accounts Payable 
C)  Sales Discount 
D)  Sales Returns and Allowances 
A)  Accounts Receivable 
B)  Accounts Payable 
C)  Sales Discount 
D)  Sales Returns and Allowances

What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit?

Refer to the Fruit & Company question. What is the amount credited to Inventory for the month?

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

Zach returned $195 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Zach pays the balance of his account after the discount period, how much should he pay?

Refer to the Fruit & Company question above. What amount would be debited to the AR control account for the month?

Refer to the Fruit & Company question above. What amount would the WMS Company owe at month end, assuming no payments were received?

Which account is used by management to keep track of possible customer dissatisfaction?

An example of a subsidiary ledger is the accounts receivable ledger.

A customer returned merchandise for credit. This will be recorded with

A characteristic of Sales Returns and Allowances is that

Monica's Closet received payment in full for goods sold within the discount period on a $480 sales invoice, terms 2/10, n/30. Which entry records this transaction?

A characteristic of a schedule of accounts receivable is that

The accounts receivable subsidiary ledger shows the amount owed from each customer.

The Payroll Journal is not considered a special journal.

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record the sale portion of this transaction as follows:

A credit memorandum is sent to a customer for the purpose of

The balance in the Accounts Receivable account is $2,100 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

What does a check mark in the PR column of a journal indicate?

If a credit memorandum is issued, what account will be increased on the seller's books?

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 6: Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit?

Refer to the Fruit & Company question. What is the amount credited to Inventory for the month?

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

Zach returned $195 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Zach pays the balance of his account after the discount period, how much should he pay?

Refer to the Fruit & Company question above. What amount would be debited to the AR control account for the month?

Refer to the Fruit & Company question above. What amount would the WMS Company owe at month end, assuming no payments were received?

Which account is used by management to keep track of possible customer dissatisfaction?

An example of a subsidiary ledger is the accounts receivable ledger.

A customer returned merchandise for credit. This will be recorded with

A characteristic of Sales Returns and Allowances is that

Monica's Closet received payment in full for goods sold within the discount period on a $480 sales invoice, terms 2/10, n/30. Which entry records this transaction?

A characteristic of a schedule of accounts receivable is that

The accounts receivable subsidiary ledger shows the amount owed from each customer.

The Payroll Journal is not considered a special journal.

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record the sale portion of this transaction as follows:

A credit memorandum is sent to a customer for the purpose of

The balance in the Accounts Receivable account is $2,100 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

What does a check mark in the PR column of a journal indicate?

If a credit memorandum is issued, what account will be increased on the seller's books?

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters