Accounting I--Chapter 10

1.

1 point

A sale on account transaction

decreases the amount to be collected later from a customer

increases the balance of the Accounts Payable account

decreases the balance of the Accounts Receivable account

increases the amount to be collected later from a customer

2.

1 point

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

Sales is debited for the price of the goods

the accounts receivable account balance is increased

Accounts Receivable is credited for the total sale and sales tax

the sales tax is not reported

3.

1 point

The amount of sales tax collected is recoirded in a

separate liability account

separate ledger

separate revenue account

combined revenue account

4.

1 point

The journal entry for a cash and credit card sales transaction is

debit Cash; debit Sales Tax Payable; credit Sales

debit Sales; credit Cash; credit Sales Tax Payable

debit Sales Tax Payable; debit Cash; credit Sales

debit Cash; credit Sales; credit Sales Tax Payable

5.

1 point

The journal entry for a cash receipt on account is

debit Accounts Payable; credit Accounts Receivable

debit Accounts Payable; credit Cash

debit Cash; credit Accounts Payable

debit Cash; credit Accounts Receivable

6.

1 point

A sale is which cash is received for the total amount of the sale at the time of the transaction is a

credit card sale

convenience sale

deferred-payment sale

cash sale

7.

1 point

A form prepared by the vendor showing the amount deducted for returns and allowances is called a

credit memorandum

purchase invoice

sales invoice

cash receipt

8.

1 point

An increase in revenue resulting from a sale on accoiunt should be recorded

at the time of the sale

at the end of the fiscal period

at the end of each month

when the final payment is made

9.

1 point

Using a cash register tape as a source document for weekly cash and credit card sales is an application of the accouting concept

Realization of Revenue

Matching Expenses with Revenue

Objective Evidence

Business Entity

10.

1 point

Recording revenue from transactions at the time goods or services are sold is an application of the concept

Matching Expenses with Revenue

Business Entity

Realization of Revenue

Objective Evidence

11.

1 point

In a cash sales transaction with sales tax, the

sales tax amount collected is a liablity

sales tax amount collected is an asset

balance of the cash account is decreased

balance of the sales account is decreased

12.

1 point

If a customer buys $300.00 worth of merchandise and the sales tax is 8% the total bill is

$300

$342

$304

$324

13.

1 point

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

plus the sales tax rate

times the sales tax rate

minus the sales tax rate

divided by the sales tax rate

14.

1 point

Sales invoices should be

all of these

numbered in sequence

prepared in triplicate

used as source documents for sales on account

15.

1 point

Using a sales invoice as a source document for recording a sale on account is an applicaton of the accounting concept

Realization of Revenue

Business Entity

Matching Expenses with Revenue

Objective Evidence

16.

1 point

-The amount of sales tax a business collects is

an asset

an expense

a liability

revenue

17.

1 point

When cash is received on account, the balance of the

sales tax payable account decreases

accounts receivable account decreases

cash account decreases

sales account increases

18.

1 point

A special journal used to record only sales on account is

a cash journal

a purchases journal

a cash receipts journal

none of the above

19.

1 point

A special journal used to record only cash receipt transactions is

a cash journal

a purchases journal

a cash receipts journal

none of the above

20.

1 point

The total amount due from all charge customers is summarized in a general ledger account titled

Revenue

Accounts Payable

Accounts Receivable

Sales