chapter 12 quizlettie
There is no need to total columns in the sales journal.
F
It is inefficient to record all cash payments in a general journal.
T
After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the general ledger balance of
accounts payable
A journal that is not used by a business is a
cash flow journal
When purchasing merchandise for resale for cash, record the transaction in the
cash payments journal
A journal designed for entering only cash receipts is called the
cash receipts journal
For the merchant, bank credit card sales are treated in a manner similar to
cash sales
A journal designed for entering only sales on account is called the
sales journal
A record used to keep the amount owed to each supplier is called a(n)
accounts payable ledger
After posting is completed in the accounts receivable ledger and the general ledger, the total of the accounts receivable ledger balances should equal the
accounts receivable account balance
A common approach to keeping a record of each customer's accounts receivable is to use a(n)
accounts receivable ledger
A cash payments journal is a special journal used to record all of the following EXCEPT
an asset accepted as payment by a supplier
Purchases returns and allowances are recorded in the
general journal
With a special journal, summary postings of column totals are made to appropriate accounts
monthly
When purchasing merchandise for resale on account, record the transaction in the
purchases journal
A list showing the amount due to each supplier as of a specified date is known as the
schedule of accounts payable
Every entry in the cash payments journal includes all of the following EXCEPT
the amount of the cash payment entered in the Cash Debit column
Summary posting from the sales journal normally would be completed in which of the following orders?
Accounts Receivable, Sales, and Sales Tax Payable columns
"S14" in the Posting Reference column of a general ledger account would indicate that amount came from the sales journal on the 14th of the month.
F
A journal designed for entering only purchases on account is called an accounts receivable journal.
F
A purchases journal is a special journal used to record purchases of merchandise for cash and on account.
F
A recommended accounting practice in order to eliminate a General Debit column in the cash payments journal is to provide separate columns for special groups of entries such as Accounts Payable, Purchases, Purchases Discounts, and Cash.
F
For the merchant, bank credit card sales are nothing like cash sales.
F
If a business uses special journals, it does NOT need to have a general journal.
F
Individual amounts for purchases returns and allowances are recorded in the General Debit column of the cash payments journal.
F
It is important to post every column total from the cash receipts journal to the general ledger.
F
Posting to the accounts payable ledger should be made at the end of the month.
F
Purchases Returns and Allowances are recorded in the purchases journal.
F
The sales journal can be used to enter any kind of sales, including cash sales and sales on account.
F
The total of the General Debit Column of the Cash Payments Journal should be posted to the general ledger at the end of each month.
F
The use of bank credit cards in connection with retail sales is not a common practice.
F
When a business uses a subsidiary accounts receivable ledger, there is no need to keep a summary accounts receivable account in the general ledger.
F
When posting the cash receipts journal to the general ledger, insert the date in the Date column and your initials in the Posting Reference column of each ledger account.
F
The cash receipts journal is posted to the general ledger in two stages. First, the individual amounts in the General Credit column are posted and then the total of the other amounts columns are posted.
T
The types of special journals a business uses should depend on the types of transactions that occur most frequently for a business.
T
Transactions that are similar in type and recorded frequently are likely to have a special journal.
T
A journal designed for entering only cash receipts is called a cash receipts journal.
T
Which of the following is NOT true about posting the cash receipts journal information at the end of the month?
Post the individual amounts from the General Credit column to the appropriate general ledger accounts
A common approach to keeping a record of each customer's accounts receivable is to use a subsidiary accounts receivable ledger.
T
After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.
T
After the posting of the accounts receivable ledger and the general ledger is completed, the total of the accounts receivable ledger balances should equal the Accounts Receivable balance in the general ledger.
T
An account number in the Posting Reference column of the general journal indicates that the amount has been posted to the account in the general ledger.
T
Each amount in the General Debit column of the cash payments journal should be posted daily.
T
Each general ledger account used in the purchases journal requires only one posting for each accounting period.
T
Each special journal allows for specific transactions.
T
If a buyer is given an allowance for damaged merchandise, an entry is required in the general journal.
T
It is an acceptable business practice to post the accounts receivable ledger daily and the general ledger monthly.
T
Most transactions entered in a special journal use a single line, with the debit and credit amounts indicated in special columns provided for each account.
T
Posting from the sales journal to the general ledger accounts requires only one posting per account each period.
T
Special journals enable a substantial time savings and make for a more efficient posting process.
T
The accounts receivable ledger is simply a detailed listing of the same information that is summarized in the accounts receivable account in the general ledger.
T