Chapter 11 - True or 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 accounts 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 Sales Returns and Allowances is a credit.
False
The normal account balance of purchases Returns and Allowances is a debit.
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.