Accounting Ch. 12

When posting the cash receipts journal to the general ledger, insert the date in the Date column and your initials in the Posting Reference column of each ledger account.

False

If a buyer is given an allowance for damaged merchandise, an entry is required in the general journal.

True

Special journals enable a substantial time savings and make for a more efficient posting process.

True

With a special journal, summary postings of column totals are made to appropriate accounts

a.monthly.

There is no need to total columns in the sales journal.

False

The types of special journals a business uses should depend on the types of transactions that occur most frequently for a business.

True

The cash receipts journal is posted to the general ledger in two stages. First, the individual amounts in the General Credit column are posted and then the total of the other amounts columns are posted.

True

When a business uses a subsidiary accounts receivable ledger, there is no need to keep a summary accounts receivable account in the general ledger.

False

An account number in the Posting Reference column of the general journal indicates that the amount has been posted to the account in the general ledger.

True

Each general ledger account used in the purchases journal requires only one posting for each accounting period.

True

Each special journal allows for specific transactions.

True

It is an acceptable business practice to post the accounts receivable ledger daily and the general ledger monthly.

True

It is inefficient to record all cash payments in a general journal.

True

Purchases returns and allowances are recorded in the

d.general journal.

After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.

True

Transactions that are similar in type and recorded frequently are likely to have a special journal.

True

A recommended accounting practice in order to eliminate a General Debit column in the cash payments journal is to provide separate columns for special groups of entries such as Accounts Payable, Purchases, Purchases Discounts, and Cash.

False

For the merchant, bank credit card sales are nothing like cash sales.

False

If a business uses special journals, it does NOT need to have a general journal.

False

Individual amounts for purchases returns and allowances are recorded in the General Debit column of the cash payments journal.

False

It is important to post every column total from the cash receipts journal to the general ledger.

False

Posting to the accounts payable ledger should be made at the end of the month.

False

A common approach to keeping a record of each customer's accounts receivable is to use a subsidiary accounts receivable ledger.

True

After posting is completed in the accounts receivable ledger and the general ledger, the total of the accounts receivable ledger balances should equal the

a.accounts receivable account balance.

For the merchant, bank credit card sales are treated in a manner similar to

a.cash sales.

A journal designed for entering only cash receipts is called a cash receipts journal.

True

When purchasing merchandise for resale for cash, record the transaction in the

b.cash payments journal.

A journal designed for entering only sales on account is called the

b.sales journal.

A list showing the amount due to each supplier as of a specified date is known as the

b.schedule of accounts payable.

After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the general ledger balance of

c.Accounts Payable.

A cash payments journal is a special journal used to record all of the following EXCEPT

c.an asset accepted as payment by a supplier.

A journal that is not used by a business is a

c.cash flow journal.

A journal designed for entering only cash receipts is called the

c.cash receipts journal.

When purchasing merchandise for resale on account, record the transaction in the

c.purchases journal.

Summary posting from the sales journal normally would be completed in which of the following orders?

d.Accounts Receivable, Sales, and Sales Tax Payable columns

Which of the following is NOT true about posting the cash receipts journal information at the end of the month?

d.Post the individual amounts from the General Credit column to the appropriate general ledger accounts.

A record used to keep the amount owed to each supplier is called a(n)

d.accounts payable ledger.

A common approach to keeping a record of each customer's accounts receivable is to use a(n)

d.accounts receivable ledger.

"S14" in the Posting Reference column of a general ledger account would indicate that amount came from the sales journal on the 14th of the month.

False

A journal designed for entering only purchases on account is called an accounts receivable journal.

False

Every entry in the cash payments journal includes all of the following EXCEPT

d.the amount of the cash payment entered in the Cash Debit column.

A purchases journal is a special journal used to record purchases of merchandise for cash and on account.

False

Purchases Returns and Allowances are recorded in the purchases journal.

False

The sales journal can be used to enter any kind of sales, including cash sales and sales on account.

False

The total of the General Debit Column of the Cash Payments Journal should be posted to the general ledger at the end of each month.

False

The use of bank credit cards in connection with retail sales is not a common practice.

False

After the posting of the accounts receivable ledger and the general ledger is completed, the total of the accounts receivable ledger balances should equal the Accounts Receivable balance in the general ledger.

True

Each amount in the General Debit column of the cash payments journal should be posted daily.

True

Most transactions entered in a special journal use a single line, with the debit and credit amounts indicated in special columns provided for each account.

True

Posting from the sales journal to the general ledger accounts requires only one posting per account each period.

True

The accounts receivable ledger is simply a detailed listing of the same information that is summarized in the accounts receivable account in the general ledger.

True