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Acct I Ch. 10 questions Flashcards | StudBud
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Acct I Ch. 10 questions
Acct I Ch. 10 questions
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1
The amount of cash received for a sale on account of $1,080 when the cash is received within the 2% discount period is
$1080.00
$108000
$21.60
$1058.40
2
When merchandise is sold on account and sales tax is also collected,
the Accounts Receivable balance is increased.
the sales tax is not reported.
Accounts Receivable is credited for the total sale and sales tax.
Sales is debited for the price of the goods.
3
ABC Co. records a $1,000 sale on account on May 23. On June 6, the customer pays. The sale should be recorded in the
cash receipts journal on May 23.
sales journal on June 6.
cash receipts journal on June 6.
sales journal on May 23.
4
Sales Tax Payable has a normal credit balance.
True
False
5
The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger acct.
True
False
6
Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary.
False
True
7
The amount of sales tax collected is a liability of a business until paid to the government.
True
False
8
The amount of sales tax on a sale is calculated as the price of goods
times the sales tax rate.
minus the sales tax rate.
divided by the sales tax rate.
plus the sales tax rate.
9
A batch report is a detailed report of cash sales during a specific period of time.
True
False
10
Most businesses receive cash for credit and debit card sales
by the start of the next business day.
within 2–3 days after batching out.
by the end of the next business day.
on the first day of the next month.
11
A business should post sales on account transactions to the accounts receivable subsidiary ledger frequently to
ensure the customer is invoiced for the sale.
follow generally accepted accounting principles.
avoid errors in posting.
ensure each customer account will show an up-to-date balance.
12
Credit terms of 2/10, n/30 mean that if the account is paid in
30 days, a 2% discount will be allowed.
10 days, a 30% discount will be allowed.
2 days, a 10% discount will be allowed.
10 days, a 2% discount will be allowed.
13
For a sale on account of $1000 plus sales tax of $80, the amount recorded in the A/R column of the sales journal is
$1000
$920
$80
$1080
14
The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.
True
False
15
Regardless of when payment is received, the revenue should be recorded when a sale is made.
False
True
16
Only the fed. government can exempt from sales taxes some types of merchandise or sales to certain types of customers.
True
False
