Question 1

A subsidiary ledger provides up-to-date information on specific account balances.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following economic events would not be recorded in the cash receipts journal?

Accepted Answer

A)  Cash sales of merchandise 
B)  Collections of accounts receivable 
C)  Cash from sale of land 
D)  Cash purchases of merchandise 
A)  Cash sales of merchandise 
B)  Collections of accounts receivable 
C)  Cash from sale of land 
D)  Cash purchases of merchandise

Question 3

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Accepted Answer

A) True 
 B)False

Question 4

Transaction amounts recorded in the general journal are never posted to accounts in the subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 5

The accounts receivable _____________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Accepted Answer

subsidiary

Question 6

Gable's Wholesale uses a sales journal. An entry in this journal represents a

Accepted Answer

A)  debit to Cash; credit to Sales Revenue. 
B)  debit to Accounts Receivable; credit to Sales Revenue. 
C)  debit to Sales Discounts; credit to Cash. 
D)  debit to Accounts Payable; credit to Sales Returns and Allowances. 
A)  debit to Cash; credit to Sales Revenue. 
B)  debit to Accounts Receivable; credit to Sales Revenue. 
C)  debit to Sales Discounts; credit to Cash. 
D)  debit to Accounts Payable; credit to Sales Returns and Allowances.

Question 7

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Accepted Answer

A)  Accounts Payable 
B)  Inventory 
C)  Supplies 
D)  Other Accounts 
A)  Accounts Payable 
B)  Inventory 
C)  Supplies 
D)  Other Accounts

Question 8

Proving the equality of the totals in the columns of multiple-column special journals is called

Accepted Answer

A)  posting to the subsidiary. 
B)  debiting and crediting. 
C)  footing and crossfooting. 
D)  updating the master file. 
A)  posting to the subsidiary. 
B)  debiting and crediting. 
C)  footing and crossfooting. 
D)  updating the master file.

Question 9

A single-column purchases journal is used to record purchases of merchandise on account.

Accepted Answer

A) True 
 B)False

Question 10

The process of totaling the columns of a journal is termed

Accepted Answer

A)  ruling. 
B)  columnizing. 
C)  sizing. 
D)  footing. 
A)  ruling. 
B)  columnizing. 
C)  sizing. 
D)  footing.

Question 11

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Accepted Answer

A) True 
 B)False

Question 12

Proving the postings of a single-column purchases journal would involve comparing the

Accepted Answer

A)  general ledger posting to Accounts Payable to the debit postings of the accounts receivable subsidiary ledger. 
B)  general ledger debit posting to Accounts Payable to the general ledger credit posting to Inventory. 
C)  general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory. 
D)  debit postings to the accounts receivable subsidiary ledger to the credit postings to the accounts payable subsidiary ledger. 
A)  general ledger posting to Accounts Payable to the debit postings of the accounts receivable subsidiary ledger. 
B)  general ledger debit posting to Accounts Payable to the general ledger credit posting to Inventory. 
C)  general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory. 
D)  debit postings to the accounts receivable subsidiary ledger to the credit postings to the accounts payable subsidiary ledger.

Question 13

A subsidiary ledger frees the general ledger from details of

Accepted Answer

A)  individual balances. 
B)  external transactions. 
C)  internal transactions. 
D)  the control account. 
A)  individual balances. 
B)  external transactions. 
C)  internal transactions. 
D)  the control account.

Question 14

If a company maintains special journals, sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.

Accepted Answer

sales jour

Question 15

If a company records merchandise it returns to suppliers in the general journal, then

Accepted Answer

A)  a posting must be made only to the accounts payable control account. 
B)  a posting must be made only to the accounts payable subsidiary ledger account. 
C)  a dual posting must be made. 
D)  there will be a debit to Inventory. 
A)  a posting must be made only to the accounts payable control account. 
B)  a posting must be made only to the accounts payable subsidiary ledger account. 
C)  a dual posting must be made. 
D)  there will be a debit to Inventory.

Question 16

An advantage of using a subsidiary ledger is that one employee must post to both the subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 17

The one characteristic that all entries recorded in a cash receipts journal have in common is

Accepted Answer

A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account. 
A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account.

Question 18

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

Accepted Answer

A)  Cash column 
B)  Sales Discounts column 
C)  Accounts Receivable column 
D)  Other Accounts column 
A)  Cash column 
B)  Sales Discounts column 
C)  Accounts Receivable column 
D)  Other Accounts column

Question 19

A cash payments journal should not be used to record transactions which require payment by check.

Accepted Answer

A) True 
 B)False

Question 20

Special journals are used to record unique transactions which do not occur very often.

Accepted Answer

A) True 
 B)False

A subsidiary ledger provides up-to-date information on specific account balances.

Which of the following economic events would not be recorded in the cash receipts journal?

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Transaction amounts recorded in the general journal are never posted to accounts in the subsidiary ledger.

The accounts receivable _ provides detailed information about customer accounts which is summarized in one __ account in the general ledger.

Gable's Wholesale uses a sales journal. An entry in this journal represents a

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Proving the equality of the totals in the columns of multiple-column special journals is called

A single-column purchases journal is used to record purchases of merchandise on account.

The process of totaling the columns of a journal is termed

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Proving the postings of a single-column purchases journal would involve comparing the

A subsidiary ledger frees the general ledger from details of

If a company maintains special journals, sales of merchandise on credit should be recorded in a _ whereas sales of merchandise for cash should be recorded in the _.

If a company records merchandise it returns to suppliers in the general journal, then

An advantage of using a subsidiary ledger is that one employee must post to both the subsidiary ledger and the general ledger.

The one characteristic that all entries recorded in a cash receipts journal have in common is

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

A cash payments journal should not be used to record transactions which require payment by check.

Special journals are used to record unique transactions which do not occur very often.

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

A subsidiary ledger provides up-to-date information on specific account balances.

Which of the following economic events would not be recorded in the cash receipts journal?

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Transaction amounts recorded in the general journal are never posted to accounts in the subsidiary ledger.

The accounts receivable _____________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Gable's Wholesale uses a sales journal. An entry in this journal represents a

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Proving the equality of the totals in the columns of multiple-column special journals is called

A single-column purchases journal is used to record purchases of merchandise on account.

The process of totaling the columns of a journal is termed

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Proving the postings of a single-column purchases journal would involve comparing the

A subsidiary ledger frees the general ledger from details of

If a company maintains special journals, sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.

If a company records merchandise it returns to suppliers in the general journal, then

An advantage of using a subsidiary ledger is that one employee must post to both the subsidiary ledger and the general ledger.

The one characteristic that all entries recorded in a cash receipts journal have in common is

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

A cash payments journal should not be used to record transactions which require payment by check.

Special journals are used to record unique transactions which do not occur very often.

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 accounts receivable _ provides detailed information about customer accounts which is summarized in one __ account in the general ledger.

If a company maintains special journals, sales of merchandise on credit should be recorded in a _ whereas sales of merchandise for cash should be recorded in the _.