Accounting Ch. 10 Accounting for Sales and Cash Receipts

Question 1

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

Accepted Answer

times the sales tax rate

Question 2

May Co records a $1,000 sale on account on 5/23. on 6/6 they paid. Sale should be recorded in

Accepted Answer

the sales journal on 5/23

Question 3

Sale in which the customer pays for the total amount of the sale at the time of the transaction

Accepted Answer

cash sale

Question 4

If merch. is sold on account & sales tax is collected,

Accepted Answer

the AR balance is increased

Question 5

A tax on a sale of merchandise or services

Accepted Answer

sales tax

Question 6

A cash discount on a sale taken by the customer

Accepted Answer

sales discount

Question 7

Report that summarizes the cash & credit card sales of a point-of-sale terminal

Accepted Answer

terminal summary

Question 8

Listing of customer accounts, account balances, & total amount due from all customers

Accepted Answer

schedule of accounts receivable

Question 9

Sales Tax Payable has a normal credit balance

Accepted Answer

true

Question 10

Subsidiary ledger containing all accounts for charge customers

Accepted Answer

accounts receivable ledger

Question 11

Amount a business adds to the cost of merchandise to establish the selling price

Accepted Answer

markup

Question 12

Most businesses receive cash for credit and debit card sales

Accepted Answer

within 2-3 days after batching out

Question 13

The amount of sales tax collected is a liability of a business until paid to the government

Accepted Answer

true

Question 14

Total of each general amount column of a CR journal is posted to the corresponding GL account

Accepted Answer

false

Question 15

A terminal summary is also known as a Z tape

Accepted Answer

true

Question 16

Process of preparing a batch report from a point-of sale terminal

Accepted Answer

batching out

Question 17

A sale on account of $100 plus tax of $7, the amount recorded in the AR column of sales journal

Accepted Answer

is $107

Question 18

Special journal used to record only sales of merchandise on account

Accepted Answer

sales journal

Question 19

Specialized computer used to collect, store, & report all the info about a sales transaction

Accepted Answer

point-of-sale (POS) terminal

Question 20

A busn. should post sales on account. transactions to the AR subsidiary ledger frequently to

Accepted Answer

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

Question 21

Amount a business receives from the sale of an item of merchandise

Accepted Answer

selling price

Question 22

Report of credit card sales produced by a point-of sale terminal

Accepted Answer

batch report

Question 23

A batch report is a detailed report of cash sales during a specific period of time

Accepted Answer

false

Question 24

Special journal used to record only cash receipt transactions

Accepted Answer

cash receipts journal

Question 25

Separate transactions are recorded for cash, cc & debit card totals listed on terminal summary

Accepted Answer

False

Question 26

Credit terms 3/10, n/30 meant that if the account is paid in

Accepted Answer

10 days, a 3% discount will be allowed

Question 27

Only the fed govt can exempt for sales tax some type of merch. or sales to certain type of busn

Accepted Answer

false

Question 28

The balance of Accounts Receivable should = the total of the schedule of accounts receivable

Accepted Answer

true

Question 29

Revenue should always be recorded at the time of sale, not when cash is actually received.

Accepted Answer

true

Accounting Ch. 10 Accounting for Sales and Cash Receipts

Questions 29

Accounting Ch. 10 Accounting for Sales and Cash Receipts

Questions 29