Question 1

The purchase of supplies on account results in a

Accepted Answer

A)  credit to Accounts Payable. 
B)  credit to Accounts Payable and the vendor's accounts payable account. 
C)  debit to Accounts Payable. 
D)  debit to Accounts Payable and the vendor's accounts payable account. 
A)  credit to Accounts Payable. 
B)  credit to Accounts Payable and the vendor's accounts payable account. 
C)  debit to Accounts Payable. 
D)  debit to Accounts Payable and the vendor's accounts payable account.

Question 2

Transactions that cannot be recorded in a special journal are recorded in a general journal.

Accepted Answer

A) True 
 B)False

Question 3

Most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared.

Accepted Answer

A) True 
 B)False

Question 4

Credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer's accounts payable.

Accepted Answer

A) True 
 B)False

Question 5

Select the one term that best fits each definition
-An amount earned by a corporation and not yet distributed to stockholders.

Accepted Answer

A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return 
A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question 6

Select the one term that best fits each definition
-A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

Accepted Answer

A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return 
A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question 7

Select the one term that best fits each definition
-Earnings distributed to stockholders.

Accepted Answer

A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return 
A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question 8

A return of merchandise to the vendor results in a

Accepted Answer

A)  debit to Purchases. 
B)  credit to Purchases Returns and Allowances. 
C)  credit to Purchases. 
D)  debit to Purchases Returns and Allowances. 
A)  debit to Purchases. 
B)  credit to Purchases Returns and Allowances. 
C)  credit to Purchases. 
D)  debit to Purchases Returns and Allowances.

Question 9

Select the one term that best fits each definition
-Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.

Accepted Answer

A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return 
A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question 10

A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a

Accepted Answer

A)  sales return. 
B)  purchases allowance. 
C)  sales allowance. 
D)  none of these. 
A)  sales return. 
B)  purchases allowance. 
C)  sales allowance. 
D)  none of these.

Question 11

Select the one term that best fits each definition
-A journal with two amount columns in which all kinds of entries can be recorded.

Accepted Answer

A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return 
A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question 12

A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.

Accepted Answer

A) True 
 B)False

Question 13

A corporation's Dividends account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 14

Dividends can be distributed to stockholders only by formal action of a corporation's board of directors.

Accepted Answer

A) True 
 B)False

Question 15

An entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 16

Select the one term that best fits each definition
-Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor.

Accepted Answer

A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return 
A)  board of directors 
B)  credit memorandum 
C)  debit memorandum 
D)  declaring a dividend 
E)  dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question 17

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

Accepted Answer

A) True 
 B)False

Question 18

The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves Accounts Receivable and the subsidiary ledger accounts.

Accepted Answer

A) True 
 B)False

Exam 11: Using a General Journal

The purchase of supplies on account results in a

Transactions that cannot be recorded in a special journal are recorded in a general journal.

Most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared.

Credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer's accounts payable.

Select the one term that best fits each definition -An amount earned by a corporation and not yet distributed to stockholders.

Select the one term that best fits each definition -A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

Select the one term that best fits each definition -Earnings distributed to stockholders.

A return of merchandise to the vendor results in a

Select the one term that best fits each definition -Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.

A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a

Select the one term that best fits each definition -A journal with two amount columns in which all kinds of entries can be recorded.

A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.

A corporation's Dividends account is a temporary account.

Dividends can be distributed to stockholders only by formal action of a corporation's board of directors.

An entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger.

Select the one term that best fits each definition -Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor.

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves Accounts Receivable and the subsidiary ledger accounts.

The Accounting Equation

Debit and Credit Parts

Journalizing Transactions

Posting to a General Ledger

Cash Control Systems

Work Sheet and Adjusting Entries

Financial Statements for a Proprietorship

Closing Entries and Post-Closing

Accounting for Purchases and Cash Payments

Accounting for Sales and Cash Receipts

Preparing Payroll Records

Accounting for Payroll and Payroll Taxes

Uncollectible Accounts Receivable

Adjusting Entries and a Trial Balance

Financial Statements and Closing Entries

Financial Statement Analysis

Acquiring Capital for Growth and Development

Plant Assets and Intangible Assets

Accounting for Inventory

Accruals, Deferrals, and Reversing Entries

End-Of-Fiscal-Period Work for a Corporation

Accounting for Partnerships

Recording International and Internet Sales

Service Business Organized As a Proprietorship

Merchandising Business As a Corporation

Additional Accounting Procedures

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