Accounting Ch 10 Review

Question 1

Most businesses receive cash for credit and debit card sales

Accepted Answer

within 2-3 days after batching out.

Question 2

A specialized computer used to collect, store & report all information about sales transaction

Accepted Answer

point-of-sale terminal

Question 3

Credit terms of 2/10, n/30 mean that if the account is paid in

Accepted Answer

10 days, a 2% discount will be allowed.

Question 4

A tax on a sale of merchandise or services.

Accepted Answer

sales tax

Question 5

A listing of customer accounts, account balances and total amount due from all customers,

Accepted Answer

schedule of accounts receivable

Question 6

For a sale on acct of $800 + sales tax of $48, the amt recorded in AR amt column of sales journ

Accepted Answer

is $848

Question 7

Separate transactions are recorded for cash, credit card & debit card totals listed on term sum

Accepted Answer

False

Question 8

A terminal summary is also known as a T tape.

Accepted Answer

False

Question 9

Only the fed govt can exempt from sales taxes some types of merch or sales to certain customers

Accepted Answer

False

Question 10

The amount a business receives from the sale of an item of merchandise.

Accepted Answer

selling price

Question 11

The amount a business adds to the cost of merchandise to arrive at the selling price.

Accepted Answer

markup

Question 12

When merchandise is sold on account and sales tax is also collected,

Accepted Answer

The Accounts Receivable balance is increased

Question 13

Revenue should be recorded when a sales is made, not on the date cash is received.

Accepted Answer

True

Question 14

Amt of cash received for a sale on acct of $1000 when cash is received w/i 2% discount period

Accepted Answer

is $980

Question 15

Most states do not require a business to collect sales tax from customers.

Accepted Answer

False

Question 16

The total of each gen amt column of a cr journal is posted to the corresponding gen ledger acct

Accepted Answer

False

Question 17

A cash discount on a sale taken by the customer.

Accepted Answer

sales discount

Question 18

A subsidiary ledger containing all accounts for charge customers.

Accepted Answer

accounts receivable ledger

Question 19

The amount of sales tax collected is an expense of operating a business.

Accepted Answer

False

Question 20

Credit card & dc sales are treated as cash sales because business rec its cash in a short time

Accepted Answer

True

Question 21

Sales Tax Payable has a normal debit balance.

Accepted Answer

False

Question 22

A business should post sales on acct to the AR subsidiary ledger frequently to

Accepted Answer

ensure each customer account will show an up-to-date balance

Question 23

The amount of sales tax on a sale is calculated as the price of goods __

Accepted Answer

times the sales tax rate

Question 24

Recorded cash and credit card sales, plus sales tax. What is debited?

Accepted Answer

cash

Question 25

The report that summarizes the cash and credit card sales of a point-of-sale terminal.

Accepted Answer

terminal summary

Question 26

When a sales discount is taken, a customer pays less cash than invoice amt previously recorded

Accepted Answer

True

Question 27

A special journal used to record only cash receipt transactions.

Accepted Answer

cash receipts journal

Question 28

Sales tax rates are usually stated as a percentage of sales.

Accepted Answer

True

Question 29

Olson Co records a $1500 sale on acct on 8/23. On 9/8, the customer pays the acct. The sale is

Accepted Answer

recorded in sales journal on Aug 23

Question 30

Some businesses call the schedule of accts receivable the accounts receivable trial balance

Accepted Answer

True

Question 31

If a business sold merchandise on account to Doris Edwards, plus sales tax, what is credited?

Accepted Answer

Sales and Sales Tax Payable

Question 32

A report of credit card sales produced by a point-of-sale terminal.

Accepted Answer

batch report

Question 33

A sale in which the customer pays the total amount of the sale at the time of the transaction.

Accepted Answer

cash sale

Question 34

A schedule of ar contains a complete listing of each sales invoice owed by customers.

Accepted Answer

False

Question 35

An invoice describes the goods or services sold, the quantity and price, and terms of the sale.

Accepted Answer

True

Question 36

Inv used as a source doc for recording sale on account is a sales inv, sales tckt or sales slip

Accepted Answer

True

Question 37

A special journal used to record only sales of merchandise on account.

Accepted Answer

sales journal

Question 38

The process of preparing a batch report from a point-of-sale terminal.

Accepted Answer

batching out

Accounting Ch 10 Review

Questions 38

Accounting Ch 10 Review

Questions 38