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