Question 1

If a company maintains special journals, sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.

Accepted Answer

sales jour...

Question 2

Correcting entries are journalized in

Accepted Answer

A)  a special journal.
B)  the general journal.
C)  the general ledger.
D)  a correcting journal.

Question 3

The entries in a sales journal will show

Accepted Answer

A)  all sales of merchandise.
B)  the cash sales of the company.
C)  the credit sales of merchandise.
D)  all sales of the company.

Question 4

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Accepted Answer

A) True 
 B)False

Question 5

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Accepted Answer

A) True 
 B)False

Question 6

The balance of a control account in the general ledger

Accepted Answer

A)  must always be zero.
B)  must equal the amount of total assets.
C)  is always greater than the composite balance of individual accounts in a related subsidiary ledger.
D)  must equal the composite balance of individual accounts in a related subsidiary ledger.

Question 7

A single-column purchases journal indicates that

Accepted Answer

A)  only purchases of merchandise on account can be recorded.
B)  all purchases of merchandise can be recorded.
C)  all acquisitions on account can be recorded.
D)  another column must be added so that debits and credits can be recorded.

Question 8

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 9

A sales journal is used to record

Accepted Answer

A)  only cash sales of merchandise.
B)  sales of all assets on credit and for cash.
C)  only credit sales of merchandise.
D)  credit sales of merchandise, sales returns and allowances, and sales discounts.

Question 10

A cash payments journal should not be used to record transactions which require payment by check.

Accepted Answer

A) True 
 B)False

Question 11

A subsidiary ledger frees the general ledger from details of

Accepted Answer

A)  individual balances.
B)  external transactions.
C)  internal transactions.
D)  the control account.

Question 12

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

Accepted Answer

A)  Cash column
B)  Sales Discount column
C)  Accounts Receivable column
D)  Other Accounts column

Question 13

Special journals are used to record unique transactions which do not occur very often.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

A company would not likely use subsidiary ledgers for

Accepted Answer

A)  inventory.
B)  retained earnings.
C)  equipment.
D)  accounts receivable.

Question 16

Journalizing in a sales journal will not

Accepted Answer

A)  require a debit to Accounts Receivable.
B)  show a sales invoice number.
C)  affect the reference column of the journal.
D)  include a credit to the Sales account.

Question 17

If a company records merchandise it returns to suppliers in the general journal, then

Accepted Answer

A)  a posting must be made only to the accounts payable control account.
B)  a posting must be made only to the accounts payable subsidiary ledger account.
C)  a dual posting must be made.
D)  there will be a debit to Merchandise Inventory.

Question 18

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

Accepted Answer

A)  credit to the Cash account.
B)  debit to the Cash account.
C)  debit to the Accounts Payable account.
D)  credit to the Accounts Payable account.

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

A)  Cash sales of merchandise
B)  Collections of accounts receivable
C)  Cash from sale of land
D)  Cash purchases of merchandise

Exam 15: Subsudiary Ledgers and Special Journals

A company would not likely use subsidiary ledgers for

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A subsidiary ledger frees the general ledger from details of

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The entries in a sales journal will show

Correct AnswerverifiedShow Answer

A sales journal is used to record

Correct AnswerverifiedShow Answer

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Correct AnswerverifiedShow Answer

If a company records merchandise it returns to suppliers in the general journal, then

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A cash payments journal should not be used to record transactions which require payment by check.

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Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

Correct AnswerverifiedShow Answer

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

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Special journals are used to record unique transactions which do not occur very often.

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The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Correct AnswerverifiedShow Answer

Journalizing in a sales journal will not

Correct AnswerverifiedShow Answer

If a company maintains special journals, sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.

Correct Answerverifiedsales jour...View AnswerShow Answer

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Correct AnswerverifiedShow Answer

A single-column purchases journal indicates that

Correct AnswerverifiedShow Answer

The balance of a control account in the general ledger

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correcting entries are journalized in

Correct AnswerverifiedShow Answer

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If a company maintains special journals, sales of merchandise on credit should be recorded in a _ whereas sales of merchandise for cash should be recorded in the _.

Correct Answer
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sales jour...
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