Chapter 2 - CHS Accounting

Mia is analyzing the performance of various departments in her company. Can departmental information help her identify problems in specific departments?

• True

• False

Mia is managing the cash receipts journal for her store. She needs to record sales and sales returns and allowances by department. Is this statement true or false?

• True

• False

Mia frequently updates the customer accounts by posting entries to the general journal to ensure the accounts are current.

• True

• False

The form prepared by the vendor showing the amount deducted for returns and allowances is known as a credit memorandum.

• True
• False

Emma runs a small business and records each amount received from her customers in the Accounts Receivable Credit column of her cash receipts journal. Is each amount then posted to the appropriate customer account in the accounts receivable ledger?

• True

• False

Mia is managing a retail store and wants to ensure she has complete departmental data. She needs to analyze purchases, sales, cash receipts, and cash payments by department. Is this true?

• True

• False

Emma is reviewing the sales journal for her small business and notices it has three credit columns: (1) Sales Discount, (2) Sales, and (3) Sales Tax Payable. Is this correct?

• True

• False

Luna is responsible for updating the sales journal at her company. When she posts amounts from the sales journal to the customers’ accounts, she records the customer number in the Post. Ref. column of the sales journal.

• True

• False

In states that have a sales tax, Mia's business includes a Sales Tax Payable Credit column in the sales journal.

• True

• False

Evelyn runs a small bakery and is learning about accounting principles. She wonders why businesses record departmental sales separately. Does the Realization of Revenue accounting concept explain this practice?

• True

• False