Principles of Accounts Quiz

What is a sales ledger control account?

• A sales ledger control account is a document that tracks the inventory of a company's sales department.

• A sales ledger control account is a record of all sales transactions made by a company.

• A sales ledger control account is a summary account that represents the total balance of all individual customer accounts in the sales ledger.

• A sales ledger control account is a financial statement that shows the total revenue generated by a company's sales activities.

What is the purpose of a purchases ledger control account?

• To track and reconcile purchases made by a business.

• To manage employee payroll.

• To record sales made by a business.

• To track inventory levels in a warehouse.

What are sales returns?

• Products that customers return to the seller due to defects.

• Products that customers return to the seller for various reasons.

• Products that customers return to the seller for a refund.

• Products that customers return to the seller for exchange.

How are sales returns recorded in the sales ledger control account?

• By debiting the sales returns account and crediting the sales revenue account.

• By debiting the sales returns account and crediting the accounts receivable account.

• By debiting the sales returns account and crediting the inventory account.

• By debiting the sales returns account and crediting the accounts payable account.

What are sales discounts?

• Discounts offered by customers to sellers for purchasing a product or service

• Reductions in the price of a product or service offered by a seller to incentivize customers to make a purchase.

• Payments made by customers to sellers for purchasing a product or service

• Additional charges added to the price of a product or service

How are sales discounts recorded in the sales ledger control account?

• By deducting the discount amount from the total sales amount.

• By not recording the discount amount in the sales ledger control account.

• By recording the discount amount separately from the total sales amount.

• By adding the discount amount to the total sales amount.

What is a purchases journal?

• A purchases journal is a document used to record all sales made by a business.

• A purchases journal is a report that summarizes the financial transactions of a business.

• A purchases journal is a special journal used to record all purchases made by a business.

• A purchases journal is a ledger used to track employee salaries.

How are purchases recorded in the purchases journal?

• By entering the details of each purchase

• By recording the payment method for each purchase

• By recording the date of each purchase

• By recording the total amount of purchases

What are purchases returns?

• Goods returned by the seller to the customers

• Goods purchased by customers from the seller

• Goods exchanged between customers and the seller

• Goods returned by customers to the seller

How are purchases returns recorded in the purchases ledger control account?

• By debiting the purchases returns account and crediting the purchases ledger control account.

• By crediting the purchases ledger control account and debiting the purchases returns account.

• By debiting the purchases ledger control account and debiting the purchases returns account.

• By debiting the purchases ledger control account and crediting the purchases returns account.