Chapter 11
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
both accounts names
A correction of a transaction posted to the wrong customer account results in
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
sales allowance
A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a
debit memorandum
A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance
credit memorandum
A form prepared by the vendor showing the amount deducted for returns and allowances
true
A general journal entry posted to Accounts Payable will also be posted to an accounts payable account
board of directors
A group of persons elected by the stockholders to govern a corporation
general journal
A journal with two amount columns in which all kinds of entries can be recorded.
credit to purchases returns and allowances
A return of merchandise to the vendor results in a
true
A sales return that credits the customer's account is recorded in the general journal
declaring a dividend
Action by a board of directors to distribute corporate earnings to stockholders
retained earnings
An amount earned by a corporation and not yet distributed to stockholders
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
retained earnings
At the end of the fiscal period, the balance of Dividends is closed to
false
Credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer's accounts payable
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 payable to the vendor
Purchases return
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor
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 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
true
Dividends can be distributed to stockholders only by formal action of a corporation's board of directors
dividends
Earnings distributed to stockholders
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
the number of shares outstanding multiplied by a dollar amount per share
The amount of a dividend is normally calculated as
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 balance of Sales Returns and Allowances is a credit
credit to accounts payable and the vendor's accounts payable accounts
The purchase of supplies on account results in a
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
dividends
Which of the following stockholders' equity accounts has a normal debit balance?
drawing
Dividends is a temporary account of a corporation and is similar to which proprietorship account?
