Deck 10: Accounting for Sales and Cash Receipts

Question 1

A batch report is a detailed report of cash sales during a specific period of time.

Answer 1

False

Question 2

Sales Tax Payable has a normal credit balance.

Answer 2

True

Question 3

Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of customers.

Answer 3

False

Question 4

Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.

Question 5

The amount of sales tax collected is a liability of a business until paid to the government.

Question 6

The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account.

Question 7

The total amount of credit card and debit card sales transactions are recorded as a debit to cash, since the business will receive cash for the entire amount.

Question 8

A terminal summary is also known as a Z tape.

Question 9

Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary.

Question 10

The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.

Question 11

When merchandise is sold on account and sales tax is also collected,

A) Accounts Receivable is credited for the total sale and sales tax.
B) the Accounts Receivable balance is increased.
C) Sales is debited for the price of the goods.
D) the sales tax is not reported.

Question 12

Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded in the

A) sales journal on May 23.
B) cash receipts journal on May 23.
C) sales journal on June 6.
D) cash receipts journal on June 6.

Question 13

For a sale on account of $1,000.00 plus sales tax of $80.00, the amount recorded in the Accounts Receivable amount column of a sales journal is

A) $1,080. 00.
B) $1,000. 00.
C) $920. 00.
D) $80. 00.

Question 14

The amount of sales tax on a sale is calculated as the price of goods

A) plus the sales tax rate.
B) times the sales tax rate.
C) minus the sales tax rate.
D) divided by the sales tax rate.

Question 15

A business should post sales on account transactions to the accounts receivable subsidiary ledger frequently to

A) ensure the customer is invoiced for the sale.
B) avoid errors in posting.
C) follow generally accepted accounting principles.
D) ensure each customer account will show an up-to-date balance.

Question 16

The amount of cash received for a sale on account of $1,080.00 when the cash is received within the 2% discount period is

A) $1,080. 00.
B) $1,062. 00.
C) $1,058. 40.
D) $1,053. 60.

Question 17

Most businesses receive cash for credit and debit card sales

A) at the end of the business day.
B) by the start of the next business day.
C) within 2-3 days after batching out.
D) on the first day of the next month.

Question 18

Credit terms of 2/10, n/30 mean that if the account is paid in

A) 2 days, a 10% discount will be allowed.
B) 10 days, a 2% discount will be allowed.
C) 10 days, a 30% discount will be allowed.
D) 30 days, a 2% discount will be allowed.

Question 19

Select the one term that best fits each definition

-A specialized computer used to collect, store, and report all the information about a sales transaction.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 20

Select the one term that best fits each definition

-The report that summarizes the cash and credit card sales of a point-of-sale terminal.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 21

Select the one term that best fits each definition

-The process of preparing a batch report from a point-of-sale terminal.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 22

Select the one term that best fits each definition

-A special journal used to record only cash receipt transactions.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 23

Select the one term that best fits each definition

-A cash discount on a sale taken by the customer.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 24

Select the one term that best fits each definition

-The amount a business receives from the sale of an item of merchandise.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 25

Select the one term that best fits each definition

-A subsidiary ledger containing all accounts for charge customers.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 26

Select the one term that best fits each definition

-A special journal used to record only sales of merchandise on account.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 27

Select the one term that best fits each definition

-A sale in which the customer pays for the total amount of the sale at the time of the transaction.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 28

Select the one term that best fits each definition

-A report of credit card sales produced by a point-of-sale terminal.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 29

Select the one term that best fits each definition

-A tax on a sale of merchandise or services.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 30

Select the one term that best fits each definition

-The amount a business adds to the cost of merchandise to establish the selling price.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary

Question 31

Select the one term that best fits each definition

-A listing of customer accounts, account balances, and total amount due from all customers.

A) accounts receivable ledger
B) batch report
C) batching out
D) cash receipts journal
E) cash sale
F) markup
G) point-of-sale (POS) terminal
H) sales discount
I) sales journal
J) sales tax
K) schedule of accounts receivable
L) selling price
M) terminal summary