Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

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 9

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 10

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 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

A company would not likely use subsidiary ledgers for

Accepted Answer

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

Question 14

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 15

Correcting entries are journalized in

Accepted Answer

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

Question 16

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 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

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 19

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

Question 20

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.

Exam 15: Subsudiary Ledgers and Special Journals

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

Correct AnswerverifiedShow Answer

A sales journal is used to record

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Journalizing in a sales journal will not

Correct AnswerverifiedShow Answer

A single-column purchases journal indicates that

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The balance of a control account in the general ledger

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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 subsidiary ledger frees the general ledger from details of

Correct AnswerverifiedShow Answer

The entries in a sales journal will show

Correct AnswerverifiedShow Answer

Correcting entries are journalized in

Correct AnswerverifiedShow Answer

A company would not likely use subsidiary ledgers for

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...
View Answer

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