Accounting True or False Quiz

The sales return day book is the book of prime entry for credit sales

• True

• False

The journal records all bank and cash transactions

• True

• False

An invoice is raised by the business in order to confirm the amount not yet paid

• True

• False

Cash book is the book of original entry for cash receipts and disbursements.

• True

• False

A debit note is in effect a request for a credit note

• True

• False

A debit records a decrease in liabilities or an increase in assets

• True

• False

Credits increase liability, equity, and expense account

• True

• False

Sales transactions are recorded in the sales day book

• True

• False

The sales return day book is a chronological list of the issued credit notes

• True

• False

Trade accounts payable and Trade accounts receivable are liabilities

• True

• False