Accounting Chapter 11 True/False
true
a completed general journal page should always be reviewed to be sure that all postings have been made
true
a corporation can decide if and when to declare a dividend
true
a corporation's Dividends account is a temporary account
true
a credit memorandum issued by a vendor results in the vendor recording a credit to the customer's account
false
a credit 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 an accounts payable account
true
a sales return that credits the customer's account is recorded in the general journal
true
an entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger
false
an entry recorded in a general journal will increase the account debited and decrease the account credited
false
credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer's account payable
true
dividends can be distributed to stockholders only by formal action of a corporation's board of directors
false
entries in the general journal only affect account balances in general ledger accounts
false
in a computerized accounting system,transactions recorded on a general journal are posted at the end of the month
false
most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared
true
net income increases a corporation's total stockholders' equity
false
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
the normal account balance of Purchases Returns and Allowances is a debit
false
the normal account balances of Sales Returns and Allowances is a credit
false
the stockholders' equity account,Dividends,has a normal credit balance
true
transactions that cannot be recorded in a special journal are recorded in a general journal