Accounting Quiz

A journal with two amount columns in which all kinds of entries can be recorded is known as what?

• Board of directors

• Credit memorandum

• Debit memorandum

• General journal

What is the credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor?

• Sales allowance

• Purchases return

• Dividends

• Retained earnings

What is the credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor?

• Purchases allowance

• Sales return

• Declaring a dividend

• Board of directors

What is a form prepared by the customer showing the price deduction taken by the customer for a return or an allowance?

• Debit memorandum

• Credit memorandum

• General journal

• Retained earnings

What is the credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business?

• Sales return

• Purchases allowance

• Dividends

• Declaring a dividend

What is the credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business?

• Sales allowance

• Purchases return

• Board of directors

• General journal

What is a form prepared by the vendor showing the amount deducted for returns and allowances?

• Credit memorandum

• Debit memorandum

• Dividends

• Retained earnings

What is an amount earned by a corporation and not yet distributed to stockholders?

• Dividends

• Retained earnings

• Sales return

• Purchases allowance

What are earnings distributed to stockholders called?

• Dividends

• General journal

• Sales allowance

• Purchases return

What is a group of persons elected by the stockholders to govern a corporation?

• Board of directors

• Declaring a dividend

• Credit memorandum

• Sales return