Accounting Quiz

Each of the following companies is a merchandising business except a

• Car wash

• Candy store

• Furniture store

• Wholesale parts of company

Merchandising business has more assets and liabilities than a service business

• True

• False

The entry to record the return of merchandise from costumer would include a

• Credit to sales

• Debit to sales

• Debit to Sales Returns and Allowances

• Credit to Sales Returns & Allowances

A sale of merchandise on March 21 with terms n/10 EOM is due collected by

• March 31

• April 1

• April 10

• April 30

The cash receipts journal is used in journalizing

• All cash receipts including cash sales

• All purchase of merchandise on account

• All cash paid including cash purchase

• All transactions sales of merchandise on account

Which of the following statements about general journal is true?

• Provides a chronological record of the company's transaction

• Involves transferring of journal entries to the ledger account

• Displays the transaction's date account titles and explanations and outstanding balance of each transaction.

• None of the above

What if a firm's payment to a supplier for merchandise inventory is recorded?

• Sales Journal

• Cash Receipt Journal

• Cash Payment Journal

• Purchase Journal

A transaction is first recorded in a record called a:

• Journal

• T-account

• Ledger

• Chart of account

Identify the statements are true or false Statement 1- The Sales Journal all sales of goods and services on credit but not including sales for cash Statement 2- The Cash Payment Journal records all purchases of goods whether in cash or credit

• Both statements are true

• Both statements are false

• Statement 1 is true; Statement 11 is false

• Statement 1 is false; Statement 11 is false

Collected ₱10,000 from a customer in payment of his account. What type of special journal will you record the transaction?

• Cash Receipt Journal

• Cash Disbursement journal

• Purchase Journal

• Sales Journal