Ch Det - 10: Accounting for Sales and Cash Receipts

Question 1

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

Accepted Answer

False

Question 2

The total of each general amount column of a journal is posted to a general ledger account

Accepted Answer

False

Question 3

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

Accepted Answer

True

Question 4

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 5

The total of credit/debit card sales is recorded as a Cash debit since the business gets cash

Accepted Answer

True

Question 6

What is a credit batch report?

Accepted Answer

Report listing all Credit Card transactions

Question 7

Sale on account: $1000, sales tax: $80; what amount is recorded to Accounts Receivable?

Accepted Answer

$1,080

Question 8

May 23: $1000 sale on account, June 6: payment received. When and where is the sale recorded?

Accepted Answer

Sales journal on May 23

Question 9

Sales Tax Payable has a normal credit balance

Accepted Answer

True

Question 10

Separate transactions are recorded for cash and credit/debit card totals on a terminal summary

Accepted Answer

False

Question 11

What do you do differently when you journalize cash sales in a cash receipts journal?

Accepted Answer

put a checkmark in the account title column.

Question 12

The balance of Accounts Receivable should equal the total of the schedule of AR

Accepted Answer

True

Question 13

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

Accepted Answer

times the sales tax rate.

Question 14

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

Accepted Answer

The sale amount and tax amounts are recorded separately

Question 15

A terminal summary is also known as a register tape

Accepted Answer

True

Question 16

Sale on account: $1100, payment received minus a 2% discount; what is the cash amount received?

Accepted Answer

$1,078

Question 17

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

Accepted Answer

ensure customer account balances are up-to-date

Question 18

Regardless of when payment is received, the revenue should be recorded when a sale is made

Accepted Answer

True

Question 19

Sales tax goes to

Accepted Answer

the government

Question 20

Only the federal government can exempt some types of merchandise from sales taxes

Accepted Answer

False

Questions 20