Accounting Chapter 16
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True/False Accounts Receivable is a controlling account.
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True/False Accounts receivable amounts are posted daily to the accounts named in the Customer's Account Debited column.
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True/False After a posting has been made from the sales or cash receipts journal to a customer's account, the customer account number is entered in the Posting Reference column of the journal.
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True/False After posting journal column totals, the account numbers are entered in the Posting Reference column.
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True/False All transactions recorded in the sales journal must have sales tax recorded.
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True/False Amounts entered in the General Credit column of the cash receipts journal are posted at the end of the month.
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True/False Amounts recorded in the General Credit column of the cash receipts journal are to be posted when the transaction is journalized.
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True/False At the end of the month, a check mark is placed below the double ruling in the General Credit column of the cash receipts journal to indicate the column total is not posted.
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True/False Cash discounts are computed on the total amount of merchandise sold and not the sales tax.
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True/False Cash sales are recorded in the sales journal.
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True/False Column totals are posted at the end of the month.
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True/False Customer accounts are listed in alphabetical order in the accounts receivable subsidiary ledger.
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True/False Every transaction recorded in the cash receipts journal results in a debit to cash.
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True/False Footings are always completed in pencil, and column totals are written in ink.
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True/False Merchandising businesses sell strictly on a cash basis.
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True/False Most transactions recorded in the cash receipts journal result in a debit to Accounts Receivable and a credit to Cash in Bank.
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True/False Only customer accounts with balances are entered on the schedule of accounts receivable.
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True/False Only the sale of merchandise on account is recorded in the sales journal.
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True/False Postings are made to customer accounts usually at the end of the week.
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True/False Sales taxes are not usually charged on sales of merchandise to government agencies.
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True/False The cash register tape is the source document for recording cash and bank card sales.
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True/False The column totals from the sales journal are posted to three separate general ledger accounts.
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True/False The individual amounts in the Accounts Receivable Debit column of the sales journal are to be posted on a monthly basis.
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True/False The sales journal has columns for sales, sales tax, and accounts payable.
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True/False The sales journal is proved if all columns are correctly added.
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True/False The sales journal is used to record all sales of merchandise for cash or on account.
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True/False The sales journal is used to record any sale of merchandise, whether on account or for cash.
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True/False The schedule of accounts receivable reports the amount of money owed by a business's customers.
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True/False The subsidiary ledger and the controlling account can balance even if an amount is posted to the wrong account.
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True/False The total of an amount column in a special journal is posted to the general ledger account named in the column heading.
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True/False Two major advantages of a special journal are that it saves time in recording and posting business transactions.
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True/False When first totaling amount columns in a special journal always use pencil.
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True/False When journalizing cash sales and bankcard sales transactions, a dash is placed in the Posting Reference column.
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True/False When posting from a special journal, post information moving from top to bottom rather than left to right.
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True/False When preparing a schedule of accounts receivable, enter only the accounts that have a balance.
footing
a column total written in small penciled figures
schedule of accounts receivable
a list of each charge customer, the balance in the customer's account, and the total amount due from all customers.
cash receipts journal
a special journal used to record all transactions in which cash is received
sales journal
a special journal used to record only sales of merchandise on account
special journals
Journals that have amount columns for recording debits and credits to specific general ledger accounts.
the total amount to be received from a customer
The Accounts Receivable Debit column of the sales journal is used to record ___________________________.
on the day the transaction occurred
The amounts recorded in the General Credit column of the cash receipts journal are posted ________________________________.
on a daily basis
The individual amounts recorded in the Accounts Receivable Credit column of the cash receipts journal are posted ____________________.
at the end of the month
The totals of the Sales Credit column and the Sales Tax Payable Credit column in the sales journal should be posted ___________________________________.
Sales Credit column.
The value of the merchandise sold is recorded in the sales journal in the ________________________.
