Exam 11: Using a General Journal

Dividends is a temporary account of a corporation and is similar to which proprietorship account?

Select the one term that best fits each definition -A form prepared by the vendor showing the amount deducted for returns and allowances.

A corporation can decide if and when to declare a dividend.

A completed general journal page should always be reviewed to be sure that all postings have been made.

At the end of the fiscal period, the balance of Dividends is closed to

Entries in the general journal only affect account balances in general ledger accounts.

Which of the following stockholders' equity accounts has a normal debit balance?

The normal account balance of Purchases Returns and Allowances is a debit.

A sales return that credits the customer's account is recorded in the general journal.

Select the one term that best fits each definition -A group of persons elected by the stockholders to govern a corporation.

Net income increases a corporation's total stockholders' equity.

A credit memorandum issued by a vendor results in the vendor recording a credit to the customer's account.

Select the one term that best fits each definition -Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business.

An entry recorded in a general journal will increase the account debited and decrease the account credited.

In a computerized accounting system, transactions recorded on a general journal are posted at the end of the month.

Select the one term that best fits each definition -Action by a board of directors to distribute corporate earnings to stockholders.

A correction of a transaction posted to the wrong customer account results in

The amount of a dividend is normally calculated as

The stockholders' equity account, Dividends, has a normal credit balance.

Select the one term that best fits each definition -Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor.