Accounting Basics : Lesson 11 : MCQ

Question 1 of 20

5.0 Points

Payment of $99 for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable for $100, but no mention was made of the subsidiary ledger account. This error will cause the

[removed] A. net income for the period to be overstated.
[removed] B. net income for the period to be understated.
[removed] C. control account to not agree with the subsidiary ledger.
[removed] D. assets to be overstated.

Question 2 of 20

5.0 Points

The principal ledger containing all the balance sheet and income statement accounts is the _______ ledger.

[removed] A. general
[removed] B. creditors’
[removed] C. customers’
[removed] D. subsidiary

Question 3 of 20

5.0 Points

A Sold Merchandise for Cash subject to a sales tax accepting cash will be recorded with a

[removed] A. credit to an asset account.
[removed] B. debit to a liability account.
[removed] C. debit to Capital.
[removed] D. None of the above
Question 4 of 20	5.0 Points

Kristi’s Pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?

[removed] A. Debit Cash $5,000; credit Tile Sales $5,000
[removed] B. Debit Accounts Receivable $4,050; credit Tile Sales $4,050
[removed] C. Debit Accounts Receivable $4,050; debit Sales Discount $50.00; credit Tile Sales $5,000
[removed] D. Debit Accounts Receivable $5,000; credit Tile Sales $5,000

Question 5 of 20

5.0 Points

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.

[removed] A. $5,000.00
[removed] B. $9,500.00
[removed] C. $10,000.00
[removed] D. $9,900.00

Question 6 of 20

5.0 Points

When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the _______ account.

[removed] A. master
[removed] B. subsidiary
[removed] C. receivable
[removed] D. controlling

Question 7 of 20

5.0 Points

Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 6% sales tax.

[removed] A. $1,000.00
[removed] B. $1,030.00
[removed] C. $1,060.00
[removed] D. $1,090.00

Question 8 of 20

5.0 Points

If a credit memorandum is issued, which account will be increased on the seller’s books?

[removed] A. Accounts Receivable
[removed] B. Accounts Payable
[removed] C. Sales Discount
[removed] D. Sales Returns and Allowances

Question 9 of 20

5.0 Points

The collection on an account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause the

[removed] A. the net income for the period to be understated.
[removed] B. the net income for the period to be overstated.
[removed] C. the control account to not agree with the subsidiary ledger.
[removed] D. the assets to be overstated.

Question 10 of 20

5.0 Points

Which statement about subsidiary ledgers is most accurate?

[removed] A. The subsidiary ledger accounts will never equal the control account in the general ledger.
[removed] B. The Accounts Receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
[removed] C. The subsidiary ledger accounts will equal the amount in the Sales account.
[removed] D. All of the above

Question 11 of 20

5.0 Points

If a credit memorandum is issued, which account will be decreased on the seller’s books?

[removed] A. Accounts Receivable
[removed] B. Accounts Payable
[removed] C. Sales Discount
[removed] D. Sales Returns and Allowances

Question 12 of 20

5.0 Points

A characteristic of a schedule of Accounts Receivable is that

[removed] A. it contains a list of customers’ names with balances.
[removed] B. the total is equal to the Accounts Receivable control account at the end of the month.
[removed] C. it’s prepared at the end of the month.
[removed] D. All of the above

Question 13 of 20

5.0 Points

Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a

[removed] A. debit to Sales Returns and Allowances for $132.50.
[removed] B. debit to Sales Returns and Allowances for $125.00.
[removed] C. credit to Sales Tax Payable for $7.50.
[removed] D. debit to Accounts Receivable for $132.50.

Question 14 of 20

5.0 Points

Entries to customers’ accounts for sales are posted in the _______ subsidiary ledger.

[removed] A. Accounts Receivable
[removed] B. Accounts Payable
[removed] C. Fixed Asset
[removed] D. Cash

Question 15 of 20

5.0 Points

The normal balance of the Accounts Receivable subsidiary ledger is

[removed] A. credit.
[removed] B. debit.
[removed] C. It doesn’t have a normal balance.
[removed] D. Not enough information has been provided.

Question 16 of 20

5.0 Points

Unlimited Materials sold goods for $2,000 plus 6% sales tax to a charge customer, terms n/30. Which entry is required to record this transaction?

[removed] A. Debit Accounts Receivable $2,120; credit Sales Tax Payable $120; credit Sales $2,000
[removed] B. Debit Cash $2,000; credit Sales $2,000
[removed] C. Debit Accounts Receivable $2,000; credit Sales $2,000
[removed] D. Debit Accounts Receivable $2,120; credit Sales $2,120

Question 17 of 20

5.0 Points

A received payment within the discount period for previously merchandise sold will be recorded with a

[removed] A. credit to an asset account.
[removed] B. debit to a liability account.
[removed] C. debit to Capital.
[removed] D. None of the above

Question 18 of 20

5.0 Points

Determine the amount of cash collected on a credit sale in the amount of $4,500 and subject to a 6% sales tax when $500 worth of merchandise has already been returned for credit.

[removed] A. $4,240.00
[removed] B. $4,500.00
[removed] C. $4,000.00
[removed] D. $3,860.00

Question 19 of 20

5.0 Points

Zach returned $200 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Justin pays the balance of his account after the discount period, how much should he pay?

[removed] A. $204.00
[removed] B. $196.00
[removed] C. $200.00
[removed] D. $400.00

Question 20 of 20

5.0 Points

A checkmark in the PR column in the general journal means the

[removed] A. entry was recorded correctly.
[removed] B. amount was posted to the controlling account.
[removed] C. amount was recorded in the subsidiary ledger.
[removed] D. entry was audited.

12 years ago

Report issue

A+ Answer - Accurate & Economical

NOT RATED

Purchase the answer to view it

solution_115.docx