Question 1

Net sales equal

Accepted Answer

A)  gross sales. 
B)  gross sales - sales returns and allowances. 
C)  gross sales - sales returns and allowances - sales discounts. 
D)  sales discounts. 
A)  gross sales. 
B)  gross sales - sales returns and allowances. 
C)  gross sales - sales returns and allowances - sales discounts. 
D)  sales discounts.

Question 2

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is not necessary to post to the Accounts Receivable controlling account.

Accepted Answer

A) True 
 B)False

Question 3

Determine the amount of cash collected on a credit sale with a price of $76,750 and credit terms of 1/10, n/30, assuming the payment was after the discount period had expired.

Accepted Answer

The answer of Determine the amount of cash collected on...

Question 4

A customer returned merchandise having already paid for it within the cash discount period. The return will be recorded with

Accepted Answer

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

Question 5

What is the self check that a person should implement after creating the schedule of accounts receivable?

Accepted Answer

The total of the schedule of accounts re

Question 6

Physical counts are not required when a perpetual inventory system is used as the inventory is perpetually up to date.

Accepted Answer

A) True 
 B)False

Question 7

Gross Sales equals all the cash and credit sales made by a business for a specific period.

Accepted Answer

A) True 
 B)False

Question 8

Cost of goods sold is

Accepted Answer

A)  total cost of inventory purchases during the period. 
B)  total cost of returns for the period. 
C)  total cost of purchases less ending inventory. 
D)  total cost of merchandise sold during the period. 
A)  total cost of inventory purchases during the period. 
B)  total cost of returns for the period. 
C)  total cost of purchases less ending inventory. 
D)  total cost of merchandise sold during the period.

Question 9

A checkmark in the PR column in the general journal means

Accepted Answer

A)  the entry was recorded correctly. 
B)  the amount was posted to the controlling account. 
C)  the amount was recorded in the subsidiary ledger. 
D)  the entry was audited. 
A)  the entry was recorded correctly. 
B)  the amount was posted to the controlling account. 
C)  the amount was recorded in the subsidiary ledger. 
D)  the entry was audited.

Question 10

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 11

Individual credit customer accounts are kept in the general ledger.

Accepted Answer

A) True 
 B)False

Question 12

Collected a payment from a credit customer: This will be recorded with

Accepted Answer

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

Question 13

Distinguish between a cash discount and a trade discount.

Accepted Answer

A cash discount is offered primarily as

Question 14

Refer to the previous question. What is the amount credited to Sales for the month?

Accepted Answer

The answer of Refer to the previous question. What is...

Question 15

It is a requirement that all customers have identical credit terms.

Accepted Answer

A) True 
 B)False

Question 16

When merchandise is sold on account, the transaction is recorded in the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 17

The normal balance of the Sales Returns and Allowances account is

Accepted Answer

A)  a credit. 
B)  a debit. 
C)  zero. 
D)  It doesn't have a normal balance. 
A)  a credit. 
B)  a debit. 
C)  zero. 
D)  It doesn't have a normal balance.

Question 18

Explain why, when a customer returns merchandise after it was paid for, he/she may or may not receive credit equal to the invoice value of the merchandise returned.

Accepted Answer

If the payment was made before

Question 19

When merchandise is sold on account, it is usually recorded in the

Accepted Answer

A)  cash receipts journal. 
B)  purchases journal. 
C)  sales journal. 
D)  cash payments journal. 
A)  cash receipts journal. 
B)  purchases journal. 
C)  sales journal. 
D)  cash payments journal.

Question 20

The accounts receivable subsidiary ledger

Accepted Answer

A)  is organized in alphabetical order. 
B)  is not kept in the same book as Accounts Receivable. 
C)  should equal the controlling account in the general ledger. 
D)  All of the above are correct. 
A)  is organized in alphabetical order. 
B)  is not kept in the same book as Accounts Receivable. 
C)  should equal the controlling account in the general ledger. 
D)  All of the above are correct.

Net sales equal

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is not necessary to post to the Accounts Receivable controlling account.

Determine the amount of cash collected on a credit sale with a price of $76,750 and credit terms of 1/10, n/30, assuming the payment was after the discount period had expired.

A customer returned merchandise having already paid for it within the cash discount period. The return will be recorded with

What is the self check that a person should implement after creating the schedule of accounts receivable?

Physical counts are not required when a perpetual inventory system is used as the inventory is perpetually up to date.

Gross Sales equals all the cash and credit sales made by a business for a specific period.

Cost of goods sold is

A checkmark in the PR column in the general journal means

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

Individual credit customer accounts are kept in the general ledger.

Collected a payment from a credit customer: This will be recorded with

Distinguish between a cash discount and a trade discount.

Refer to the previous question. What is the amount credited to Sales for the month?

It is a requirement that all customers have identical credit terms.

When merchandise is sold on account, the transaction is recorded in the cash receipts journal.

The normal balance of the Sales Returns and Allowances account is

Explain why, when a customer returns merchandise after it was paid for, he/she may or may not receive credit equal to the invoice value of the merchandise returned.

When merchandise is sold on account, it is usually recorded in the

The accounts receivable subsidiary ledger

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

Net sales equal

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is not necessary to post to the Accounts Receivable controlling account.

Determine the amount of cash collected on a credit sale with a price of $76,750 and credit terms of 1/10, n/30, assuming the payment was after the discount period had expired.

A customer returned merchandise having already paid for it within the cash discount period. The return will be recorded with

What is the self check that a person should implement after creating the schedule of accounts receivable?

Physical counts are not required when a perpetual inventory system is used as the inventory is perpetually up to date.

Gross Sales equals all the cash and credit sales made by a business for a specific period.

Cost of goods sold is

A checkmark in the PR column in the general journal means

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

Individual credit customer accounts are kept in the general ledger.

Collected a payment from a credit customer: This will be recorded with

Distinguish between a cash discount and a trade discount.

Refer to the previous question. What is the amount credited to Sales for the month?

It is a requirement that all customers have identical credit terms.

When merchandise is sold on account, the transaction is recorded in the cash receipts journal.

The normal balance of the Sales Returns and Allowances account is

Explain why, when a customer returns merchandise after it was paid for, he/she may or may not receive credit equal to the invoice value of the merchandise returned.

When merchandise is sold on account, it is usually recorded in the

The accounts receivable subsidiary ledger

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