accounting chapter 11
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