Accounting Chapter 11 T/F
A corporation's Dividends account is a permanent account similar to a proprietorship's drawing account
False
A credit memorandum issued by a vendor results in the vendor recording a debit to the customer's account
False
All corporations are required to declare dividends
False
An entry recorded in a general journal will either increase all accounts or decrease all accounts affected by the entry
False
Credit allowed for part of the purchase price of merchandise that is not returned results in an increase in the customer's account
False
Dividends can be distributed to stockholders only by formal action of a corporation's chief financial officer
False
Entries in the general journal only affect account balances in general ledger accounts
False
The normal account balance of Purchases Returns and Allowances is a debit
False
A completed general journal page should always be reviewed to be sure that all postings have been made
True
A debit memorandum prepared by a customer results in the customer recording a debit to the vendor account
True
A general journal entry posted to accounts payable will also be posted to a subsidiary ledger account
True
A sales return that credits the customer's account is not recorded in a cash receipts journal because the transaction does not involve cash
True
An entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger.
True
In a computerized accounting system, transactions recorded in a general journal are posted immediately after they are entered
True
Most corporations pay a dividend by writing a single check to an agent, such as a bank, that distributes checks to individual stockholders
True
Net income increases a corporation's total stockholders' equity.
True
The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves only subsidiary ledger accounts
True
The normal account balance of Sales Returns and Allowances is a debit
True
The stockholders' equity account, Dividends, has a normal debit balance
True
Transactions that cannot be recorded in a special journal are recorded in a general journal
True
