Question 1

When a company uses an accounts receivable subsidiary ledger,

Accepted Answer

A)  it need not maintain an Accounts Receivable account in the general ledger.
B)  credit sales transactions must be posted to the individual customers' accounts monthly.
C)  when the amounts in the subsidiary ledger and the controlling account do not match,the accountant must find the error and correct it.
D)  All of these choices.E) A) and C)
F) None of the above

Question 2

Special purpose journals promote

Accepted Answer

A)  economy and control.
B)  faithful representation and relevance.
C)  relevance and timeliness.
D)  going concern and periodicity.E) B) and D)
F) None of the above A

Question 3

When a company uses an accounts receivable subsidiary ledger,it cannot also maintain an Accounts Receivable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 4

The sales journal

Accepted Answer

A)  is designed to handle all cash and credit sales.
B)  requires that account names be written out for each debit and credit.
C)  requires a brief explanation for each transaction.
D)  requires that only one amount,total credit sales for the month,be posted.E) B) and D)
F) All of the above D

Question 5

Which of the following transactions would be recorded in a multicolumn purchases journal?

Accepted Answer

A)  Credit purchase of supplies.
B)  Credit purchase of equipment.
C)  Credit purchase of merchandise for resale to customers.
D)  All of these choices.E) None of the above
F) B) and C) D

Question 6

On April 12,Vancouver Company accepted a return of $200 of merchandise purchased on account.This transaction will result in

Accepted Answer

A)  a $200 credit to the controlling account,Accounts Receivable,and a $200 credit to the individual account in the subsidiary ledger.
B)  the subsidiary ledger total being $200 less than the controlling account total.
C)  a $200 debit to the subsidiary ledger and a $200 credit to the controlling account,Accounts Receivable.
D)  the subsidiary ledger total being $200 more than the controlling account total.E) All of the above
F) None of the above

Question 7

The purchases journal is used to record only purchases made on credit.

Accepted Answer

A) True 
 B)False

Question 8

The total of the balances in the subsidiary ledger accounts equals the balance in the corresponding controlling account.

Accepted Answer

A) True 
 B)False

Question 9

If management wants specific information on individual items,a subsidiary ledger can be used for Notes Receivable and Equipment.

Accepted Answer

A) True 
 B)False

Question 10

The cash payments journal would normally post a

Accepted Answer

A)  debit to Cash.
B)  credit to Purchases Discounts.
C)  credit to Accounts Payable.
D)  credit to Advertising Expense.E) A) and B)
F) A) and C)

Question 11

When special-purpose journals are used,which of the following is an entry that would be recorded in the general journal rather than in a special journal?

Accepted Answer

A)  Sale of merchandise on account.
B)  Cash purchase of merchandise for resale.
C)  A return of merchandise bought on account.
D)  Cash receipt from a customer for payment on their account.E) B) and D)
F) B) and C)

Question 12

The sales journal is used to handle all cash and credit sales.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts would be credited in the cash payments journal?

Accepted Answer

A)  Purchases Discounts.
B)  Accounts Payable.
C)  Salary Expense.
D)  Rent Expense.E) B) and C)
F) All of the above

Question 14

Special-purpose journals

Accepted Answer

A)  can be an important part of establishing good internal control.
B)  require posting each debit and each credit for each transaction.
C)  can be used to record over 99% of most business transactions.
D)  include the sales journal and the adjusting entries journal.E) None of the above
F) All of the above

Question 15

All transactions involving receipts of cash are recorded in the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 16

Describe at least 3 ways the sales journal saves time.

Accepted Answer

Ways the sales journal saves time: a.Onl...

Question 17

When special journals are used,the general journal is used to record

Accepted Answer

A)  purchase returns.
B)  sales of merchandise on credit.
C)  receipts of cash.
D)  purchases on credit.E) None of the above
F) A) and B)

Question 18

Transactions involving payments of cash for merchandise are recorded in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 19

The cash receipts journal

Accepted Answer

A)  must have several columns,it cannot be a single-column journal.
B)  requires that the "Other Accounts" column total be posted daily and at the end of the month.
C)  can result in both debits and credits to cash,depending on the transaction.
D)  All of these choices.E) C) and D)
F) A) and D)

Question 20

On April 12,Vancouver Company returned of $500 of merchandise it purchased on account from Rupert Co.This transaction will result in

Accepted Answer

A)  a $500 debit to the controlling account,Accounts Payable,and a $500 debit to the individual account in the subsidiary ledger.
B)  the subsidiary ledger total being $500 less than the controlling account total.
C)  a $500 debit to the subsidiary ledger and a $500 credit to the controlling account,Accounts Payable.
D)  the subsidiary ledger total being $500 more than the controlling account total.E) A) and B)
F) All of the above

Exam 6: Supplement: Accounting for Merchandising Operations

When a company uses an accounts receivable subsidiary ledger,

Correct AnswerverifiedShow Answer

Special purpose journals promote

Correct AnswerverifiedA

When a company uses an accounts receivable subsidiary ledger,it cannot also maintain an Accounts Receivable account in the general ledger.

Correct AnswerverifiedShow Answer

The sales journal

Correct AnswerverifiedD

Which of the following transactions would be recorded in a multicolumn purchases journal?

Correct AnswerverifiedD

On April 12,Vancouver Company accepted a return of $200 of merchandise purchased on account.This transaction will result in

Correct AnswerverifiedShow Answer

The purchases journal is used to record only purchases made on credit.

Correct AnswerverifiedShow Answer

The total of the balances in the subsidiary ledger accounts equals the balance in the corresponding controlling account.

Correct AnswerverifiedShow Answer

If management wants specific information on individual items,a subsidiary ledger can be used for Notes Receivable and Equipment.

Correct AnswerverifiedShow Answer

The cash payments journal would normally post a

Correct AnswerverifiedShow Answer

When special-purpose journals are used,which of the following is an entry that would be recorded in the general journal rather than in a special journal?

Correct AnswerverifiedShow Answer

The sales journal is used to handle all cash and credit sales.

Correct AnswerverifiedShow Answer

Which of the following accounts would be credited in the cash payments journal?

Correct AnswerverifiedShow Answer

Special-purpose journals

Correct AnswerverifiedShow Answer

All transactions involving receipts of cash are recorded in the cash receipts journal.

Correct AnswerverifiedShow Answer

Describe at least 3 ways the sales journal saves time.

Correct AnswerverifiedWays the sales journal saves time: a.Onl...View AnswerShow Answer

When special journals are used,the general journal is used to record

Correct AnswerverifiedShow Answer

Transactions involving payments of cash for merchandise are recorded in the cash payments journal.

Correct AnswerverifiedShow Answer

The cash receipts journal

Correct AnswerverifiedShow Answer

On April 12,Vancouver Company returned of $500 of merchandise it purchased on account from Rupert Co.This transaction will result in

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Ways the sales journal saves time: a.Onl...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified