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OAD 135 EXAM 3 Study Mate Flashcards | StudBud
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OAD 135 EXAM 3 Study Mate
The Accounting Equation is:
The Sales account is classified as
OAD 135 EXAM 3 Study Mate
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1
The Sales account is classified as
an asset account.
a revenue account.
a contra account.
a liability account.
2
The Accounting Equation is:
Assets = Liabilities + Owner's Equity
Assets = Liabilities + Owners Expense
Assets = Liabilities + Owner's Capital
Assets = Owner's Equity + Liabilities
3
To arrive at an accurate balance on a bank reconciliation statement, a service charge should be:
added to the bank statement balance.
deducted from the book balance.
added to the book balance.
deducted from the bank statement balance.
4
If a firm does not have a sales returnsand allowances journal,the entries for these transactions are made in
the sales journal.
the general journal.
the cash payments journal.
the cash receipts journal.
5
A firm that sells goods that it purchases for re-sale is a
merchandising business.
non-profit business.
service business.
manufacturing business.
6
The Purchases account is:
a temporary account.
a permanent account.
a subsidiary account.
a liability account.
7
Check marks next to the individual amounts in the purchases journal mean that the amounts:
have been posted to the general ledger.
have been posted to the accounts receivable subsidiary ledger.
ave been posted to the accounts payable subsidiary ledger.
do not need to be posted to any account.
8
In a firm that uses special journals, the sale of merchandise for cash is recorded in the
sales journal.
cash receipts journal.
purchases journal.
cash payments journal.
9
In a firm that uses special journals, the purchase of merchandise for cash is recorded in the:
cash receipts journal.
general journal.
purchases journal.
cash payments journal.
10
Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?
deposits in transit
NSF checks
bank service charges
a charge for printing new checks
11
Merchandise is sold on credit for $900+5% sales tax.The entry in the sales journal will include a debit to AcctsRec. for
$904.50.
$905.00.
$900.00.
$945.00.
12
Freight charges on merchandise purchases should be debited to:
the creditor's account in the subsidiary ledger
the Purchases account.
the Freight In account.
the Accounts Payable account.
13
When the sales department needs goods, it sends the purchasing department a form called:
a purchase invoice.
a purchase requisition.
a sales invoice.
a purchase order.
14
The entry to record a purchase of merchandise on credit includes:
a debit to Accounts Payable and a credit to Purchases.
a debit to Purchases and a credit to Accounts Payable.
a debit to Purchases and a credit to Accounts Receivable.
a credit to Purchases and a credit to Accounts Payable.
15
To arrive at an accurate balance on a bank reconciliation statement, deposits in transit should be:
deducted from the book balance.
added to the bank statement balance.
deducted from the bank statement balance.
added to the book balance.
16
The source document for recording a purchase of merchandise on credit is:
the receiving report.
the purchase requisition.
the purchase invoice.
the purchase order.
17
To arrive at an accurate bal. on a bank reconciliation statement a debit memo for a customer check marked NSF should be:
deducted from the bank statement balance.
added to the book balance.
deducted from the book balance.
added to the bank statement balance.
18
In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal
the total of the Sales column.
the total of the Sales Tax Payable column.
the sum of the totals of the Sales
the difference between the total of Sales Tax Payable and the total Sales
19
In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in?
sales journal.
general journal.
cash receipts journal.
cash payments journal.
20
In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the
cash receipts journal.
purchases journal.
cash payments journal.
general journal.
21
To arrive at an accurate balance on a bank reconciliation statement, a service charge should be:
added to the book balance.
deducted from the bank statement balance.
deducted from the book balance.
added to the bank statement balance.
22
Identify the statement below that correctly describes the Sales Returns and Allowances account.
It normally has a credit balance.
It is an expense account.
It is a liability account.
It normally has a debit balance.
23
In a firm that uses special journals, a sale of merchandise on credit is recorded in the
cash payments journal.
cash receipts journal.
purchases journal.
sales journal.
24
In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the:
purchases journal.
cash receipts journal.
cash payments journal.
general journal.
25
Purchases of merchandise on credit should be recorded in:
the general journal.
the purchases journal.
the sales journal.
the cash payments journal.
26
Purchases of supplies on credit that are to be used in the business are entered in:
the purchases journal.
the cash receipts journal.
the cash payments journal.
the general journal.
