Question 1

Gable's Wholesale uses a sales journal. An entry in this journal represents a

Accepted Answer

A)   debit to Cash; credit to Sales Revenue.
B)   debit to Accounts Receivable; credit to Sales Revenue.
C)   debit to Sales Discounts; credit to Cash.
D)   debit to Accounts Payable; credit to Sales Returns and Allowances.

Question 2

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Accepted Answer

A)   Accounts Payable
B)   Inventory
C)   Supplies
D)   Other Accounts

Question 3

Entries in the cash payments journal are made from

Accepted Answer

A)   sales invoices.
B)   purchase invoices.
C)   prenumbered checks.
D)   canceled checks.

Question 4

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 Inventory.

Question 5

Listed below are various column headings that may appear in special journals. Using the following code letters, identify for each column heading (1) the special journal where the column heading would appear, and (2) whether the amounts entered under the column heading would be posted in total, individually, or both in total and individually. (Note: column headings may appear in more than one special journal)

Accepted Answer

The answer of Listed below are various column headings that...

Question 6

Postings are made daily to subsidiary ledgers so that

Accepted Answer

A)   employees are kept busy.
B)   debits equal credits.
C)   individual account information is kept current.
D)   the control account will balance to the subsidiary ledger.

Question 7

If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system.

Accepted Answer

A) True 
 B)False

Question 8

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Accepted Answer

A)   a signature of the accountant doing the posting.
B)   a date under the double-line total.
C)   the general ledger account numbers under the double-lined total.
D)   inspecting the postings in the accounts payable subsidiary ledger.

Question 9

The "Other Accounts" column in a cash receipts journal is also referred to as the

Accepted Answer

A)   miscellaneous column.
B)   excess column.
C)   sundry accounts column.
D)   compound-entry column.

Question 10

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 11

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 12

A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and a general journal. A cash sales return would be recorded in the

Accepted Answer

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

Question 13

Match the items below by entering the appropriate code letter in the space provided.
A. Accounts payable ledger 
B. Cybercrime 
C. Special journals
D. Subsidiary ledger
E. Control account
1. A general ledger account that summarizes detailed information in a subsidiary ledger.
2. A subsidiary ledger that contains accounts with individual creditors.
3. Involves the Internet or computer technology.
4. Detailed information about a group of accounts with a common characteristic.
5. Used to record high volume, similar type transactions.

Accepted Answer

1. E
2. A
...

Question 14

The accounts receivable _____________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Accepted Answer

subsidiary...

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

-Using the cash payments journal above, identify each of the posting references indicated by a letter, as representing:
(1) a posting to a general ledger account.
(2) a posting to a subsidiary ledger account.
(3) that no posting is required.

Accepted Answer

a. 2 g. 1
b. 1 h. 3
...

Question 17

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 Revenue account.

Question 18

Proving the equality of the totals in the columns of multiple-column special journals is called

Accepted Answer

A)   posting to the subsidiary.
B)   debiting and crediting.
C)   footing and crossfooting.
D)   updating the master file.

Question 19

Which of the following is not a true statement about the daily posting of the sales journal?

Accepted Answer

A)   There is a debit posting to accounts in the accounts receivable subsidiary ledger.
B)   There is no credit posting.
C)   The reference column in the sales journal is checked when the posting is complete for each entry in the journal.
D)   The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.

Question 20

If a company purchases merchandise for cash, the transaction should be recorded in the

Accepted Answer

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

Exam 29: Subsidiary Ledgers and Special Journals

Gable's Wholesale uses a sales journal. An entry in this journal represents a

Correct Answer
verified

-Using the cash payments journal above, identify each of the posting references indicated by a letter, as representing: (1) a posting to a general ledger account. (2) a posting to a subsidiary ledger account. (3) that no posting is required.

Correct Answer
verified
a. 2 g. 1
b. 1 h. 3
...
View Answer

If a company purchases merchandise for cash, the transaction should be recorded in the

Correct Answer
verified

The accounts receivable _ provides detailed information about customer accounts which is summarized in one __ account in the general ledger.

Correct Answer
verified
subsidiary...
View Answer

Correct Answer
verified
1. E
2. A
...
View Answer

Which of the following is not a true statement about the daily posting of the sales journal?

Correct Answer
verified

A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and a general journal. A cash sales return would be recorded in the

Correct Answer
verified

Postings are made daily to subsidiary ledgers so that

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Proving the equality of the totals in the columns of multiple-column special journals is called

Correct Answer
verified

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Correct Answer
verified

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

Correct Answer
verified

The "Other Accounts" column in a cash receipts journal is also referred to as the

Correct Answer
verified

If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system.

Correct Answer
verified

Journalizing in a sales journal will not

Correct Answer
verified

Entries in the cash payments journal are made from

Correct Answer
verified

A single-column purchases journal indicates that

Correct Answer
verified

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Correct Answer
verified

A company would not likely use subsidiary ledgers for

Correct Answer
verified

Exam 29: Subsidiary Ledgers and Special Journals

Gable's Wholesale uses a sales journal. An entry in this journal represents a

Correct AnswerverifiedShow Answer

-Using the cash payments journal above, identify each of the posting references indicated by a letter, as representing: (1) a posting to a general ledger account. (2) a posting to a subsidiary ledger account. (3) that no posting is required.

Correct Answerverifieda. 2 g. 1b. 1 h. 3...View AnswerShow Answer

If a company purchases merchandise for cash, the transaction should be recorded in the

Correct AnswerverifiedShow Answer

The accounts receivable _____________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Correct Answerverifiedsubsidiary...View AnswerShow Answer

Correct Answerverified1. E2. A...View AnswerShow Answer

Which of the following is not a true statement about the daily posting of the sales journal?

Correct AnswerverifiedShow Answer

A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and a general journal. A cash sales return would be recorded in the

Correct AnswerverifiedShow Answer

Postings are made daily to subsidiary ledgers so that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Proving the equality of the totals in the columns of multiple-column special journals is called

Correct AnswerverifiedShow Answer

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

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

The "Other Accounts" column in a cash receipts journal is also referred to as the

Correct AnswerverifiedShow Answer

If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system.

Correct AnswerverifiedShow Answer

Journalizing in a sales journal will not

Correct AnswerverifiedShow Answer

Entries in the cash payments journal are made from

Correct AnswerverifiedShow Answer

A single-column purchases journal indicates that

Correct AnswerverifiedShow Answer

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

Correct AnswerverifiedShow Answer

A company would not likely use subsidiary ledgers for

Correct AnswerverifiedShow Answer

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a. 2 g. 1
b. 1 h. 3
...
View Answer

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verified

The accounts receivable _ provides detailed information about customer accounts which is summarized in one __ account in the general ledger.

Correct Answer
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subsidiary...
View Answer

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1. E
2. A
...
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