Question 1

Select the one term that best fits each definition
-A special journal used to record only sales of merchandise on account.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 2

Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded in the

Accepted Answer

A)   sales journal on May 23.
B)   cash receipts journal on May 23.
C)   sales journal on June 6.
D)   cash receipts journal on June 6. A

Question 3

Select the one term that best fits each definition
-A sale in which the customer pays for the total amount of the sale at the time of the transaction.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 4

A terminal summary is also known as a Z tape.

Accepted Answer

A) True 
 B)False  True

Question 5

Select the one term that best fits each definition
-A cash discount on a sale taken by the customer.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 6

For a sale on account of $1,000.00 plus sales tax of $80.00, the amount recorded in the Accounts Receivable amount column of a sales journal is

Accepted Answer

A)   $1,080. 00.
B)   $1,000. 00.
C)   $920. 00.
D)   $80. 00.

Question 7

Select the one term that best fits each definition
-The process of preparing a batch report from a point-of-sale terminal.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 8

When merchandise is sold on account and sales tax is also collected,

Accepted Answer

A)   Accounts Receivable is credited for the total sale and sales tax.
B)   the Accounts Receivable balance is increased.
C)   Sales is debited for the price of the goods.
D)   the sales tax is not reported.

Question 9

Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary.

Accepted Answer

A) True 
 B)False

Question 10

The amount of cash received for a sale on account of $1,080.00 when the cash is received within the 2% discount period is

Accepted Answer

A)   $1,080. 00.
B)   $1,062. 00.
C)   $1,058. 40.
D)   $1,053. 60.

Question 11

The amount of sales tax collected is a liability of a business until paid to the government.

Accepted Answer

A) True 
 B)False

Question 12

Select the one term that best fits each definition
-The amount a business receives from the sale of an item of merchandise.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 13

Select the one term that best fits each definition
-A report of credit card sales produced by a point-of-sale terminal.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 14

Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.

Accepted Answer

A) True 
 B)False

Question 15

The total amount of credit card and debit card sales transactions are recorded as a debit to cash, since the business will receive cash for the entire amount.

Accepted Answer

A) True 
 B)False

Question 16

The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account.

Accepted Answer

A) True 
 B)False

Question 17

Select the one term that best fits each definition
-A specialized computer used to collect, store, and report all the information about a sales transaction.

Accepted Answer

A)   accounts receivable ledger
B)   batch report
C)   batching out
D)   cash receipts journal
E)   cash sale F)  markupG)  point-of-sale (POS)  terminalH)  sales discountI)  sales journalJ)  sales taxK)  schedule of accounts receivableL)  selling priceM)  terminal summary

Question 18

Sales Tax Payable has a normal credit balance.

Accepted Answer

A) True 
 B)False  True

Question 19

The amount of sales tax on a sale is calculated as the price of goods

Accepted Answer

A)   plus the sales tax rate.
B)   times the sales tax rate.
C)   minus the sales tax rate.
D)   divided by the sales tax rate.

Question 20

A batch report is a detailed report of cash sales during a specific period of time.

Accepted Answer

A) True 
 B)False

Exam 10: Accounting for Sales and Cash Receipts

Select the one term that best fits each definition -A special journal used to record only sales of merchandise on account.

Correct AnswerverifiedShow Answer

Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded in the

Correct AnswerverifiedA

Select the one term that best fits each definition -A sale in which the customer pays for the total amount of the sale at the time of the transaction.

Correct AnswerverifiedShow Answer

A terminal summary is also known as a Z tape.

Correct AnswerverifiedTrue

Select the one term that best fits each definition -A cash discount on a sale taken by the customer.

Correct AnswerverifiedShow Answer

For a sale on account of $1,000.00 plus sales tax of $80.00, the amount recorded in the Accounts Receivable amount column of a sales journal is

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The process of preparing a batch report from a point-of-sale terminal.

Correct AnswerverifiedShow Answer

When merchandise is sold on account and sales tax is also collected,

Correct AnswerverifiedShow Answer

Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary.

Correct AnswerverifiedShow Answer

The amount of cash received for a sale on account of $1,080.00 when the cash is received within the 2% discount period is

Correct AnswerverifiedShow Answer

The amount of sales tax collected is a liability of a business until paid to the government.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The amount a business receives from the sale of an item of merchandise.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -A report of credit card sales produced by a point-of-sale terminal.

Correct AnswerverifiedShow Answer

Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.

Correct AnswerverifiedShow Answer

The total amount of credit card and debit card sales transactions are recorded as a debit to cash, since the business will receive cash for the entire amount.

Correct AnswerverifiedShow Answer

The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -A specialized computer used to collect, store, and report all the information about a sales transaction.

Correct AnswerverifiedShow Answer

Sales Tax Payable has a normal credit balance.

Correct AnswerverifiedTrue

The amount of sales tax on a sale is calculated as the price of goods

Correct AnswerverifiedShow Answer

A batch report is a detailed report of cash sales during a specific period of time.

Correct AnswerverifiedShow Answer

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