Question 1

The use of special journals to record transactions

Accepted Answer

A)  eliminates the need for a general ledger. 
B)  can save time in the posting process. 
C)  eliminates the need for a general journal. 
D)  should only be used if the volume of transactions is small. 
A)  eliminates the need for a general ledger. 
B)  can save time in the posting process. 
C)  eliminates the need for a general journal. 
D)  should only be used if the volume of transactions is small.

Question 2

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

Accepted Answer

A)  single-column purchases journal. 
B)  multiple-column purchases journal. 
C)  cash payments journal. 
D)  general journal. 
A)  single-column purchases journal. 
B)  multiple-column purchases journal. 
C)  cash payments journal. 
D)  general journal.

Question 3

Control accounts are always located in the general ledger.

Accepted Answer

A) True 
 B)False

Question 4

Entries in a sales journal

Accepted Answer

A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit. 
A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit.

Question 5

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _______________ to the accounts in the accounts receivable subsidiary ledger and in _______________ to the control account in the general ledger.

Accepted Answer

The answer of The entries in the Accounts Receivable Credit...

Question 6

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a true statement about the daily posting of the sales journal?

Accepted Answer

A)  There is a debit posting to accounts in the accounts receivable subsidiary ledger. 
B)  There is no credit posting. 
C)  The reference column in the sales journal is checked when the posting is complete for each entry in the journal. 
D)  The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger. 
A)  There is a debit posting to accounts in the accounts receivable subsidiary ledger. 
B)  There is no credit posting. 
C)  The reference column in the sales journal is checked when the posting is complete for each entry in the journal. 
D)  The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.

Question 8

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

Accepted Answer

A) True 
 B)False

Question 9

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

Accepted Answer

A)  credit to the Cash account. 
B)  debit to the Cash account. 
C)  debit to the Accounts Payable account. 
D)  credit to the Accounts Payable account. 
A)  credit to the Cash account. 
B)  debit to the Cash account. 
C)  debit to the Accounts Payable account. 
D)  credit to the Accounts Payable account.

Question 10

The balance of a control account in the general ledger

Accepted Answer

A)  must always be zero. 
B)  must equal the amount of total assets. 
C)  is always greater than the composite balance of individual accounts in a related subsidiary ledger. 
D)  must equal the composite balance of individual accounts in a related subsidiary ledger. 
A)  must always be zero. 
B)  must equal the amount of total assets. 
C)  is always greater than the composite balance of individual accounts in a related subsidiary ledger. 
D)  must equal the composite balance of individual accounts in a related subsidiary ledger.

Question 11

Ward Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals.
Transactions
Oct. 5 Purchased merchandise on account for $10,000 from Groton Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy.
Oct. 8 Purchased store supplies on account for $700 from Flynn Supply Company. Terms: 2/10, n/30.
Oct. 11 Purchased merchandise on account for $14,000 from Buehler Corporation. Terms: 2/10, n/30; FOB shipping point.
Oct. 13 Issued a debit memorandum for $5,000 to Buehler Corporation for merchandise purchased on October 11 and returned because of damage.
Oct. 15 Paid Groton Company for merchandise purchased on October 5, less discount.
Oct. 16 Purchased merchandise for $8,000 cash from Clifford Company.
Oct. 21 Paid Buehler Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount.
Oct. 25 Purchased merchandise on account for $22,000 from Dooley Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 31 Purchased office equipment for $30,000 cash from Paten Office Supply Company.
WARD COMPANY
Purchases Journal
P1
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Inventory. Dr.
Date Account Credited Ref. Accounts Payable Cr.
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WARD COMPANY
General Journal
G1
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Date Explanation Ref. Debit Credit
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WARD COMPANY
Cash Payments Journal
CP1
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Other Accounts
Account Accounts Payable Inventory Cash
Date Debited Ref. Dr. Dr. Cr. Cr.
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Accepted Answer

WARD COMPANY
Purchases Journal
P1
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Question 12

A single-column purchases journal indicates that

Accepted Answer

A)  only purchases of merchandise on account can be recorded. 
B)  all purchases of merchandise can be recorded. 
C)  all acquisitions on account can be recorded. 
D)  another column must be added so that debits and credits can be recorded. 
A)  only purchases of merchandise on account can be recorded. 
B)  all purchases of merchandise can be recorded. 
C)  all acquisitions on account can be recorded. 
D)  another column must be added so that debits and credits can be recorded.

Question 13

A sales journal is used to record

Accepted Answer

A)  only cash sales of merchandise. 
B)  sales of all assets on credit and for cash. 
C)  only credit sales of merchandise. 
D)  credit sales of merchandise, sales returns and allowances, and sales discounts. 
A)  only cash sales of merchandise. 
B)  sales of all assets on credit and for cash. 
C)  only credit sales of merchandise. 
D)  credit sales of merchandise, sales returns and allowances, and sales discounts.

Question 14

Correcting entries are journalized in

Accepted Answer

A)  a special journal. 
B)  the general journal. 
C)  the general ledger. 
D)  a correcting journal. 
A)  a special journal. 
B)  the general journal. 
C)  the general ledger. 
D)  a correcting journal.

Question 15

An (x) below the "Other Accounts" column in a cash receipts journal indicates the

Accepted Answer

A)  total has been posted to the general ledger. 
B)  total is not posted to the general ledger. 
C)  column has been footed. 
D)  column has been cross-footed. 
A)  total has been posted to the general ledger. 
B)  total is not posted to the general ledger. 
C)  column has been footed. 
D)  column has been cross-footed.

Question 16

If a company purchases merchandise for cash, the transaction should be recorded in the

Accepted Answer

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

Question 17

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Accepted Answer

A)  Accounts Receivable; accounts receivable subsidiary accounts 
B)  Accounts receivable subsidiary accounts; Sales Revenue 
C)  Accounts Receivable; Sales Revenue 
D)  Accounts Receivable; Accounts Payable 
A)  Accounts Receivable; accounts receivable subsidiary accounts 
B)  Accounts receivable subsidiary accounts; Sales Revenue 
C)  Accounts Receivable; Sales Revenue 
D)  Accounts Receivable; Accounts Payable

Question 18

The entries recorded in the Other Accounts column of a cash payments journal

Accepted Answer

A)  are posted to the accounts payable subsidiary ledger daily. 
B)  are posted individually to accounts in the general ledger. 
C)  are not posted individually but are posted as a column total to the general ledger. 
D)  do not require posting. 
A)  are posted to the accounts payable subsidiary ledger daily. 
B)  are posted individually to accounts in the general ledger. 
C)  are not posted individually but are posted as a column total to the general ledger. 
D)  do not require posting.

Question 19

If a transaction cannot be recorded in a special journal, it is

Accepted Answer

A)  not recorded. 
B)  a correcting entry. 
C)  recorded in the general journal. 
D)  an error. 
A)  not recorded. 
B)  a correcting entry. 
C)  recorded in the general journal. 
D)  an error.

Question 20

Postings are generally made more frequently to the general ledger control accounts than to the individual accounts in the subsidiary ledgers.

Accepted Answer

A) True 
 B)False

The use of special journals to record transactions

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

Control accounts are always located in the general ledger.

Entries in a sales journal

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _ to the accounts in the accounts receivable subsidiary ledger and in _ to the control account in the general ledger.

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Which of the following is not a true statement about the daily posting of the sales journal?

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

The balance of a control account in the general ledger

A single-column purchases journal indicates that

A sales journal is used to record

Correcting entries are journalized in

An (x) below the "Other Accounts" column in a cash receipts journal indicates the

If a company purchases merchandise for cash, the transaction should be recorded in the

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

The entries recorded in the Other Accounts column of a cash payments journal

If a transaction cannot be recorded in a special journal, it is

Postings are generally made more frequently to the general ledger control accounts than to the individual accounts in the subsidiary ledgers.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 17: Specimen Financial Statements: Amazoncom, Inc

The use of special journals to record transactions

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

Control accounts are always located in the general ledger.

Entries in a sales journal

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _______________ to the accounts in the accounts receivable subsidiary ledger and in _______________ to the control account in the general ledger.

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Which of the following is not a true statement about the daily posting of the sales journal?

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

The balance of a control account in the general ledger

A single-column purchases journal indicates that

A sales journal is used to record

Correcting entries are journalized in

An (x) below the "Other Accounts" column in a cash receipts journal indicates the

If a company purchases merchandise for cash, the transaction should be recorded in the

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

The entries recorded in the Other Accounts column of a cash payments journal

If a transaction cannot be recorded in a special journal, it is

Postings are generally made more frequently to the general ledger control accounts than to the individual accounts in the subsidiary ledgers.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _ to the accounts in the accounts receivable subsidiary ledger and in _ to the control account in the general ledger.