grade 10 Accounting Credit sales

What is the effect on the AOL?

• 
• 
• 
• 

The Debtors List must always agree with the balance on the Debtors Control Account

• TRUE

• FALSE

When debtors go on a shopping spree, they owe us (a)  

What happens to the balances of debtors when they pay their accounts?

• They increase

• They stay the same

• They decrease

• Discount will be allowed

What is the effect on AOL?

• 
• 
• 
• 

When goods are sold for cash, do debtors owe more?

• Yes, Of course!!!!!

• No, cash sales have NOTHING to do with debtors!!!!!

What category does Debtors Control fall under?

• Liability

• Expense

• Current Asset

• Income

Do debtors owe us less if we offer them a discount when settling their accounts?

• Yes

• No

What does a debtor do when he settles his account?

• He pays off part of what he owes

• He pays off all he is owing

• He pays off half the amount

• He pays off the amount of credit terms

What is the effect on the AOL?

• 
• 
• 
•