Deck 12: Special Journals

Question 1

It is inefficient to record all cash receipts in a general journal.

Answer 1

True

Question 2

Most transactions entered in a special journal use a single line, with the debit and credit amounts indicated in special columns provided for each account.

Answer 2

True

Question 3

The accounts receivable ledger is simply a detailed listing of the same information that is summarized in the accounts receivable account in the general ledger.

Answer 3

True

Question 4

When a business uses a subsidiary accounts receivable ledger, there is no need to keep a summary accounts receivable account in the general ledger.

Question 5

Special journals enable a substantial time savings and make for a more efficient posting process.

Question 6

A journal designed for entering only cash receipts is called a cash receipts journal.

Question 7

The types of special journals a business uses should depend on the types of transactions that occur most frequently for a business.

Question 8

If a business uses special journals, it does NOT need to have a general journal.

Question 9

There is no need to total columns in the sales journal.

Question 10

Posting from the sales journal to the general ledger accounts requires only one posting per account each period.

Question 11

After the posting of the accounts receivable ledger and the general ledger is completed, the total of the accounts receivable ledger balances should equal the Accounts Receivable balance in the general ledger.

Question 12

For the merchant, bank credit card sales are nothing like cash sales.

Question 13

The cash receipts journal is posted to the general ledger in two stages. First, the individual amounts in the General Credit column are posted and then the total of the other amounts columns are posted.

Question 14

A common approach to keeping a record of each customer's accounts receivable is to use a subsidiary accounts receivable ledger.

Question 15

"S14" in the Posting Reference column of a general ledger account would indicate that amount came from the sales journal on the 14^th of the month.

Question 16

A journal designed for entering only sales on account is called an accounts payable journal.

Question 17

The use of bank credit cards in connection with retail sales is not a common practice.

Question 18

The sales journal can be used to enter any kind of sales, including cash sales and sales on account.

Question 19

Each special journal allows for a wide variety of transactions.

Question 20

Transactions that are similar in type and recorded frequently are likely to have a special journal.

Question 21

Individual amounts for purchases returns and allowances are recorded in the General Debit column of the cash payments journal.

Question 22

Which of the following is NOT true about posting the cash receipts journal information at the end of the month?

A) Total the amount columns, prove the total of debits equal to credits, and rule the columns.
B) Post the individual amounts from the General Credit column to the appropriate general ledger accounts.
C) Post each column total except the General Credit column total to the general ledger accounts.
D) Insert the date in the Date column and "CR" and the page number in the Posting Reference column of each ledger account.

Question 23

Posting to the accounts payable ledger should be made at the end of the month.

Question 24

Purchases Returns and Allowances are recorded in the purchases journal.

Question 25

It is important to post every column total from the cash receipts journal to the general ledger.

Question 26

A purchases journal is a special journal used to record purchases of merchandise for cash and on account.

Question 27

After posting is completed in the accounts receivable ledger and the general ledger, the total of the accounts receivable ledger balances should equal the

A) accounts payable account balance.
B) accounts receivable account balance.
C) cash account balance.
D) net income amount.

Question 28

Each amount in the General Debit column of the cash payments journal should be posted daily.

Question 29

It is an acceptable business practice to post the accounts payable ledger daily and the general ledger monthly.

Question 30

A recommended accounting practice in order to eliminate a General Debit column in the cash payments journal is to provide separate columns for special groups of entries such as Accounts Payable, Purchases, Purchases Discounts, and Cash.

Question 31

After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.

Question 32

A journal designed for entering only sales on account is called the

A) cash receipts journal.
B) cash payments journal.
C) sales journal.
D) general journal.

Question 33

An account number in the Posting Reference column of the general journal indicates that the amount has been posted to the account in the general ledger.

Question 34

Summary posting from the sales journal normally would be completed in which of the following orders?

A) Accounts Receivable, Sales, and Sales Tax Payable columns
B) Sales Tax Payable, Sales, and Accounts Receivable columns
C) Sales, Sales Tax Payable, and Accounts Receivable columns
D) Accounts Receivable, Sales Tax Payable, and Sales columns

Question 35

The total of the General Debit Column of the Cash Payments Journal should be posted to the general ledger at the end of each month.

Question 36

If a buyer is given an allowance for damaged merchandise, an entry is required in the general journal.

Question 37

A journal that is not used by a business is a

A) sales journal.
B) purchase journal.
C) cash flow journal.
D) cash receipts journal.

Question 38

A common approach to keeping a record of each customer's accounts receivable is to use a(n)

A) sales journal.
B) accounts receivable ledger.
C) general ledger.
D) controlling account.

Question 39

When posting the cash receipts journal to the general ledger, insert the date in the Date column and your initials in the Posting Reference column of each ledger account.

Question 40

Each general ledger account used in the purchases journal requires only one posting for each accounting period.

Question 41

A cash payments journal is a special journal used to record all of the following EXCEPT

A) a payment of an expense by check.
B) a cash purchase of supplies.
C) a cash withdrawal by the owner.
D) an asset accepted as payment from a supplier.

Question 42

A record used to keep the amount owed to each supplier is called a(n)

A) accounts receivable ledger.
B) accounts payable ledger.
C) transportation ledger.
D) general ledger for accounts payable.

Question 43

Match the terms with the definitions.a.cash payments journal
b.cash receipts journal
c.sales journal
d.special journal
e.purchases journal
A special journal used to record only purchases of merchandise on account.

Question 44

Match the terms with the definitions.a.cash payments journal
b.cash receipts journal
c.sales journal
d.special journal
e.purchases journal
A special journal used to record only transactions involving the receipt of cash.

Question 45

A list showing the amount due to each supplier as of a specified date is known as the

A) schedule of accounts receivable.
B) trial balance.
C) balance sheet.
D) schedule of accounts payable.

Question 46

Match the terms with the definitions.a.cash payments journal
b.cash receipts journal
c.sales journal
d.special journal
e.purchases journal
A journal designed for recording only certain kinds of transactions.

Question 47

Purchases returns and allowances are recorded in the

A) merchandise journal.
B) general journal.
C) purchases journal.
D) accounts payable journal.

Question 48

Every entry in the cash payments journal includes all of the following EXCEPT

A) the number of the check issued.
B) the name of the supplier or other accounts debited.
C) the amount of the cash payment entered in the Cash Credit column.
D) the amount of the cash payment entered in the Cash Debit column.

Question 49

After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal the general ledger balance of

A) Purchases.
B) Accounts Receivable.
C) Accounts Payable.
D) Purchases Returns and Allowances.

Question 50

When purchasing merchandise for resale for cash, record the transaction in the

A) sales journal.
B) cash receipts journal.
C) cash payments journal.
D) purchases journal.

Question 51

For the merchant, bank credit card sales are treated in a manner similar to

A) sales on account.
B) cash sales.
C) installment sales.
D) layaway sales.

Question 52

When purchasing merchandise for resale on account, record the transaction in the

A) sales journal.
B) cash receipts journal.
C) cash payments journal.
D) purchases journal.

Question 53

Match the terms with the definitions.a.cash payments journal
b.cash receipts journal
c.sales journal
d.special journal
e.purchases journal
A special journal used to record transactions involving the payment of cash.

Question 54

A journal designed for entering only cash receipts is called the

A) cash receipts journal.
B) sales journal.
C) cash payments journal.
D) general journal.

Question 55

Match the terms with the definitions.a.cash payments journal
b.cash receipts journal
c.sales journal
d.special journal
e.purchases journal
A special journal used to record only sales on account.

Question 56

With a special journal, summary postings of column totals are made to appropriate accounts

A) monthly.
B) daily.
C) yearly.
D) on a periodic basis.