accounting chapter 11 (T/F)
The purchase of supplies on accounts results in a credit to what account(s)?
Accounts Payable and the vendor's accounts payable account.
Which stockholders' equity account has a normal debit balance?
Dividends
Dividends is a temporary account of a corporation and is similar to which proprietorship account?
Drawing
T/F: A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.
False
T/F: An entry recorded in a general journal will increase the account debited and decrease the account credited.
False
T/F: Credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer's accounts payable.
False
T/F: In a computerized accounting system, transactions recorded on a general journal are posted at the end of the month.
False
T/F: Most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared.
False
T/F: The correcting entry to correct a sale on account recorded to the wrong, customer in the sales journal involves Accounts Receivable and the subsidiary ledger accounts.
False
T/F: The normal account balance of Sales Returns and Allowances is a credit.
False
T/F: The stockholders' equity account, Dividends, has a normal credit balance.
False
A return of merchandise to the vendor results in a credit to what account?
Purchases returns and allowances
At the end of the fiscal period, the balance of Dividends is closed to what account?
Retained earnings
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
A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a ___________________.
Sales allowance
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
The amount of a dividend is normally calculated as ___________________________________.
The number of shares outstanding multiplied by a dollar amount per share
T/F: A corporation can decide if and when to declare a dividend.
True
T/F: A corporation's Dividends account is a temporary account.
True
T/F: A credit memorandum issued by a vendor results in the vendor recording a credit to the customer's account.
True
T/F: A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.
True
T/F: A sales return that credits the customer's account is recorded on the general journal.
True
T/F: An entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger.
True
T/F: Dividends can be distributed to stockholders only by formal action of a corporation's board of directors.
True
T/F: Net income increases a corporation's total stockholders' equity.
True
t or f A debit memorandum prepared by a customer results in the customer recording a debit to the vendor account.
True
t or f; Transactions that cannot be recorded in a special journal are recorded in a general journal
True
t or f A corporation's dividend account is a permanent account similar to a proprietorship's drawing account.
false
t or f A credit memorandum issued by a vendor results in the vendor recording a debit to the customer's account.
false
t or f All corporations are required to declare dividends
false
t or f An entry recorded in a general journal will either increase all accounts or decrease all accounts affected by the entry.
false
t or f Credit allowed for part of the purchase price of merchandise that is not returned results in an increase in the customer's account.
false
t or f The normal account balance of Purchases Returns and Allowances is a debit.
false
t or f A completed general journal page should always be reviewed to be sure that all postings have been made.
true
t or f 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
t or f In a computerized accounting system, transactions recorded in a general journal are posted immediately after they are entered.
true
t or f Most corporations pay a dividend by writing a single check to an agent, such as a bank, that distributes checks to individual stockholders.
true
t or f The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves only subsidiary ledger accounts
true
t or f The normal account balance of Sales Returns and Allowances is a debit
true
t or f The stockholders' equity account, Dividends, has a normal debit balance
true
t or f; A general journal entry posted to Accounts Payable will also be posted to a subsidiary ledger account.
true
t or f Dividends can be distributed to stockholders only by formal action of a corporation's chief financial officer.
false
t or f Entries in the general journal only affect account balances in general ledger accounts
false
t or f Net income increases a corporation's total stockholders' equity.
true
