accounting chapter 11

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

10. A group of persons elected by the stockholders to govern a corporation. (p. 333)

board of directors

A group of persons elected by the stockholders to govern a corporation.

board of directors

7. A form prepared by the vendor showing the amount deducted for returns and allowances. (p. 327)

credit memorandum

A form prepared by the vendor showing the amount deducted for returns and allowances.

credit memorandum

4. A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance. (p. 322)

debit memorandum

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

debit memorandum

11. Action by a board of directors to distribute corporate earnings to stockholders. (p. 333)

declaring a dividend

Action by a board of directors to distribute corporate earnings to stockholders.

declaring a dividend

9. Earnings distributed to stockholders. (p. 332)

dividends

Earnings distributed to stockholders.

dividends

10. A credit memorandum issued by a vendor results in the vendor recording a debit to the customer's account. (p. 327)

false

13. Entries in the general journal only affect account balances in general ledger accounts. (p. 329)

false

16. A corporation's dividend account is a permanent account similar to a proprietorship's drawing account. (p. 332)

false

17. Dividends can be distributed to stockholders only by formal action of a corporation's chief financial officer. (p. 333)

false

18. All corporations are required to declare dividends. (p. 333)

false

3. Credit allowed for part of the purchase price of merchandise that is not returned results in an increase in the customer's account. (p. 322)

false

5. An entry recorded in a general journal will either increase all accounts or decrease all accounts affected by the entry. (p. 323)

false

6. The normal account balance of Purchases Returns and Allowances is a debit. (p. 323)

false

1. A journal with two amount columns in which all kinds of entries can be recorded. (p. 320)

general journal

A journal with two amount columns in which all kinds of entries can be recorded.

general journal

Processes and procedures employed within a business to ensure that its operations are conducted ethically, accurately, and reliably.

internal controls

3. Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor. (p. 322)

purchases allowance

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account.

purchases allowance

2. Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor. (p. 322)

purchases return

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account.

purchases return

8. An amount earned by a corporation and not yet distributed to stockholders. (p. 332)

retained earnings

An amount earned by a corporation and not yet distributed to stockholders.

retained earnings

6. 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. (p. 327)

sales allowance

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.

sales allowance

5. Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business. (p. 327)

sales return

Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business

sales return

1. Transactions that cannot be recorded in a special journal are recorded in a general journal. (p. 320)

true

11. The normal account balance of Sales Returns and Allowances is a debit. (p. 327)

true

12. A sales return that credits the customer's account is not recorded in a cash receipts journal because the transaction does not involve cash. (p. 328)

true

14. The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves only subsidiary ledger accounts. (p. 330)

true

15. Net income increases a corporation's total stockholders' equity. (p. 332)

true

19. The stockholders' equity account, Dividends, has a normal debit balance. (p. 333)

true

2. A general journal entry posted to Accounts Payable will also be posted to a subsidiary ledger account. (p. 321)

true

20. Most corporations pay a dividend by writing a single check to an agent, such as a bank, that distributes checks to individual stockholders. (p. 334)

true

4. A debit memorandum prepared by a customer results in the customer recording a debit to the vendor account. (p. 322)

true

7. An entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger. (p. 324)

true

8. In a computerized accounting system, transactions recorded in a general journal are posted immediately after they are entered. (p. 325)

true

9. A completed general journal page should always be reviewed to be sure that all postings have been made. (p. 325)

true


Ensembles d'études connexes

AP Psych - Standard Deviation Quiz

View Set

COMM 2020 Final Exam Review Dr. Nichols

View Set

Macroeconomics 202 Midterm 2 Chapter 12

View Set

Money and Banking Exam 2 HW Ch 8&9, 10, 12

View Set

Expert - Consent & Preference Management

View Set

Section 4: Continuous Probability Distributions

View Set

"Rikki-tikki-tavi" by Rudyard Kipling

View Set