Chapter 7 BTA111

The one characteristic that all entries recorded in a cash payments journal have in common is

a credit to the cash account.

The one characteristic that all entries recorded in a cash receipts journal have in common is

a debit to the Cash account.

A subsidiary ledger is

a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger

Journalizing in a sales journal will not

affect the reference column of the journal.

The entries recorded in the Other Accounts column of a cash payments journal

are posted individually to accounts in the general ledger.

The entry to record the granting of credit to a customer for a sales return is posted to

both the accounts receivable subsidiary ledger and the general ledger.

If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded in the

cash payments journal

A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and a general journal. A cash sales return would be recorded in the

cash payments journal.

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

cash payments journal.

If an owner withdraws cash for personal use, the transaction should be recorded in the

cash payments journal.

Cash from sales of merchandise will be recorded in the

cash receipts journal.

If a customer takes a sales discount, an entry is made in the

cash receipts journal.

Accounts Receivable and Accounts Payable are examples of

controlling accounts

The individual amounts in the Accounts Payable column in the cash payments journal are posted to the subsidiary ledger

daily.

Reno's Wholesale uses a sales journal. An entry in this journal represents a

debit to Accounts Receivable; credit to Sales Revenue.

The process of totaling the columns of a journal is termed

footing.

Entries in the purchases journal are made

from purchase invoices.

Companies record credit purchases of equipment or supplies in the

general journal.

Credit sales of assets other than merchandise are recorded in the

general journal.

Proving the postings of a one-column purchases journal would involve comparing the

general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory.

Adjusting entries are recorded

in the general journal.

A subsidiary ledger frees the general ledger from details of

individual balances.

If a transaction cannot be recorded in a special journal

it is recorded in the general journal.

The reference column of a multi-column cash payments journal after posting

may contain either account numbers or check marks.

postings to the control accounts in the general ledger are made

monthly

the balance of a control account in the general ledger

must equal the composite balance of individuals accounts in a related subsidiary ledger.

A sales journal is used to record

only credit sales of merchandise.

A one column purchases journal indicates that

only purchases of merchandise on account can be recorded.

Entries in a sales journal are

posted to accounts in an accounts receivable subsidiary ledger and to accounts in the general ledger

If a transaction cannot be recorded in a special journal, it is

recorded in the general journal.

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

sales journal.

The "Other Accounts" column in a cash receipts journal is also referred to as the

sundry accounts column.

The entries in a sales journal will show

the credit sales of merchandise.

Cross-footing a cash receipts journal means

the equality of debits and credits in the journal have been proved.

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

the general ledger account numbers under the double-lined total.

An (x) below the "Other Accounts" column in a cash receipts journal indicates the

total is not posted to the general ledger.

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Accounts Receivable; Sales Revenue

The reference column of the accounts in the accounts payable subsidiary ledger after posting may show

CP, P, or G references.

In which journal would a cash purchase of inventory be recorded?

Cash payments journal

Which of the following economic events would not be recorded in the cash receipts journal?

Cash purchases of merchandise

In which journal would a customer's partial payment on account be recorded?

Cash receipts journal

Which of the following is not a special journal?

General journal

In the expanded purchases journal, debits are made in which columns?

Inventory, Supplies, and Other Accounts

If a company uses a multi-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Accounts Payable

Which of the following would not be an appropriate heading for a column in the cash receipts journal?

Accounts Payable

Postings are made daily to the

Accounts Receivable subsidiary ledger.

All of the column totals in the cash receipts journal are posted to general ledger accounts except the

Other Accounts column total.

An entry in the "Other Accounts" column in a cash receipts journal could occur when the credit is to

Owner's Capital.

When the totals of the sales journal are posted at the end of the month, there will be credits to

Sales Revenue and Inventory and debits to Accounts Receivable and Cost of Goods Sold.

The Other Accounts column of a multi-column journal is often referred to as the

Sundry Accounts column.