Question 1

Match the terms below with the correct definitions.
 
-Agreement between seller and buyer on payment

Accepted Answer

The answer of Match the terms below with the correct...

Question 2

Which of the following is NOT an advantage of the Cash Payment Journal?

Accepted Answer

A)  Transactions are recorded on one line.
B)  Transactions involving credits to cash are recorded in one place.
C)  Special columns are not used in this journal.
D)  The Cash credit side can be posted as one total.

Question 3

A written promise to pay a specified amount at a specified time

Accepted Answer

A)  Promise to Pay
B)  Accrued Note
C)  Promissory Note
D)  Specified Note

Question 4

A purchase of merchandise on account is recorded in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 5

Sales Discounts would appear as a Debit column in which special journal

Accepted Answer

A)  purchases journal.
B)  general journal.
C)  sales journal.
D)  cash payments journal.
E)  cash receipts journal.

Question 6

Payment of merchandise purchased on account within the discount period is recorded in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 7

In the cash receipts journal, the total amount in the Other Accounts column is posted at the end of the month.

Accepted Answer

A) True 
 B)False

Question 8

The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is

Accepted Answer

A)  $450.
B)  $30.
C)  $21.
D)  $29.40.
E)  $24.

Question 9

Credit card receipts, cash, checks, electronic funds transfers are all examples of source documents that would be recorded in the following journal:

Accepted Answer

A)  Sales Journal
B)  Purchase Journal
C)  Cash Receipts Journal
D)  General Journal

Question 10

The cash payments journal is used for transactions involving

Accepted Answer

A)  credits to Cash, regardless of the offsetting debits.
B)  credits to Cash but not affecting subsidiary ledgers.
C)  a debit to Cash and credits to other accounts.
D)  a debit to Cash and debits or credits to other balance sheet accounts.
E)  a credit to Cash and a debit to income statement accounts.

Question 11

Which of the following journals has end-of-the-month postings?

Accepted Answer

A)  Cash payments journal
B)  Purchases journal
C)  Sales journal
D)  Cash receipts journal
E)  All special journals have end-of-the-month postings.

Question 12

Which of the following accounts normally has a credit balance?

Accepted Answer

A)  Sales Discounts
B)  Sales Returns and Allowances
C)  Purchases Returns and Allowances
D)  Purchases
E)  Accounts Receivable

Question 13

Barnes Company purchased merchandise on account, $3,500, with terms 3/10, n/30. The entry required of Barnes Company to record the transaction in the cash payments journal, assuming payment is not made within the discount period, is

Accepted Answer

A)  debit Accounts Payable, $3,500; credit Sales Discounts, $105; credit Cash, $3,395.
B)  debit Accounts Payable, $3,500; credit Cash, $3,500.
C)  debit Accounts Payable, $3,395; credit Cash, $3,395.
D)  debit Accounts Payable, $3,500; credit Purchases Discounts, $105; credit Cash, $3,395.
E)  credit Accounts Payable, $3,500; credit Cash, $3,500.

Question 14

Credit postings to the Accounts Receivable general ledger account come from the cash receipts journal and the general journal.

Accepted Answer

A) True 
 B)False

Question 15

Accounts Payable would appear as a debit in

Accepted Answer

A)  the cash payments journal.
B)  the sales journal.
C)  the purchases journal.
D)  the cash receipts journal.
E)  all the special journals.

Question 16

The following transactions were completed by Figureroa Supplies during the second half of May. Terms of sale are 1/10, n/30.
  Instructions:
Record the transactions for the second half of May, using a cash receipts journal, page 13, or a cash payments journal, page 19.

Accepted Answer

The answer of The following transactions were completed by Figureroa...

Question 17

Sales Discount is a ___________with a normal balance of __________.

Accepted Answer

A)  Contra-Asset, DR
B)  Contra-Revenue, DR
C)  Revenue, CR
D)  Liability, CR

Question 18

Tyler Corporation bought office supplies for $125 cash. In what journal would this transaction be recorded?

Accepted Answer

A)  Purchase Journal
B)  Sales Journal
C)  Cash Receipt Journal
D)  Cash Payment Journal

Question 19

You will never find the following combination of accounts in a journal entry except

Accepted Answer

A)  Accounts Receivable and Purchases.
B)  Accounts Payable and Sales.
C)  Sales Returns and Allowances and Accounts Payable.
D)  Purchases Returns and Allowances and Accounts Payable.
E)  Accounts Payable and Accounts Receivable.

Question 20

A credit to an account in the accounts payable ledger would have been posted from the cash payments journal if special journals are used.

Accepted Answer

A) True 
 B)False

Exam 10: Cash Receipts and Cash Payments

A purchase of merchandise on account is recorded in the cash payments journal.

Correct AnswerverifiedShow Answer

The cash payments journal is used for transactions involving

Correct AnswerverifiedShow Answer

Credit postings to the Accounts Receivable general ledger account come from the cash receipts journal and the general journal.

Correct AnswerverifiedShow Answer

A written promise to pay a specified amount at a specified time

Correct AnswerverifiedShow Answer

The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is

Correct AnswerverifiedShow Answer

A credit to an account in the accounts payable ledger would have been posted from the cash payments journal if special journals are used.

Correct AnswerverifiedShow Answer

Sales Discounts would appear as a Debit column in which special journal

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Which of the following journals has end-of-the-month postings?

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Barnes Company purchased merchandise on account, $3,500, with terms 3/10, n/30. The entry required of Barnes Company to record the transaction in the cash payments journal, assuming payment is not made within the discount period, is

Correct AnswerverifiedShow Answer

Tyler Corporation bought office supplies for $125 cash. In what journal would this transaction be recorded?

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In the cash receipts journal, the total amount in the Other Accounts column is posted at the end of the month.

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Which of the following is NOT an advantage of the Cash Payment Journal?

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Payment of merchandise purchased on account within the discount period is recorded in the cash payments journal.

Correct AnswerverifiedShow Answer

Which of the following accounts normally has a credit balance?

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Match the terms below with the correct definitions. -Agreement between seller and buyer on payment

Correct AnswerverifiedShow Answer

Accounts Payable would appear as a debit in

Correct AnswerverifiedShow Answer

Sales Discount is a ___________with a normal balance of __________.

Correct AnswerverifiedShow Answer

You will never find the following combination of accounts in a journal entry except

Correct AnswerverifiedShow Answer

Credit card receipts, cash, checks, electronic funds transfers are all examples of source documents that would be recorded in the following journal:

Correct AnswerverifiedShow Answer

The following transactions were completed by Figureroa Supplies during the second half of May. Terms of sale are 1/10, n/30. Instructions: Record the transactions for the second half of May, using a cash receipts journal, page 13, or a cash payments journal, page 19.

Correct AnswerverifiedShow Answer

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Sales Discount is a _with a normal balance of .

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