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Accounting - Chapter 14 Flashcards | StudBud
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Accounting - Chapter 14
Accounting - Chapter 14
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Accounting for Sales & Cash Receipts
Flashcards
10 cards
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Practice quiz
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Questions
10
Answers
1
The accounts receivable part of a journal entry is posted to the:
only once
general ledger
both the general & subsidiary ledgers
subsidiary ledger
2
According to the revenue recognition principle, revenue for a sale on account is recognized:
at the time of the sale.
by the date of the invoice.
the date payment is received.
at the time of payment.
3
The sale of merchandise that will be paid for later is called all of the following except:
cash sale
charge sale
credit sale
sale on account
4
What is the classification of the Merchandise Inventory account?
Owner's Equity
Asset
Liability
Expense
5
Sales tax collected on merchandise sold represents a liability of the business.
False
True
6
What is the normal balance side and increase side of the Sales account?
Credit
No Normal Balance
Debit
7
Sales Discounts can best be classified as a(n) __ account.
Asset
Contra Revenue
Subsidiary
Liability
8
The terms 4/15, n/30 means...
net balance due in 15 days
15% discount is paid within 4 days
4% discount if paid within 15 days
30% discount if paid within 4 days
9
What is the normal balance and increase side of Sales Returns & Allowances (a contra account)?
No Normal Balance
Credit
Debit
10
The total of the subsidiary ledger should be the same as:
the Assets.
Merchandise Inventory.
the Controlling Account.
the Liabilities.
