Deck 12: Special Journals

Question 1

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 1

True

Question 2

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

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

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

Question 5

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 6

A journal designed for entering only purchases on account is called an accounts receivable journal.

Question 7

"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 8

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

Question 9

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

Question 10

Each special journal allows for specific transactions.

Question 11

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 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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.

Question 19

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

Question 20

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

Question 21

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 22

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 23

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

Question 24

Purchases Returns and Allowances are recorded in the purchases journal.

Question 25

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 26

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

Question 27

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

Question 28

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

Question 29

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 30

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 31

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 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

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 34

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

Question 35

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

Question 36

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 37

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

Question 38

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 39

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 40

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

Question 41

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 42

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.

Question 43

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 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 transactions involving the payment 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

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 48

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 49

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 50

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

A) accounts receivable ledger.
B) accounts payable ledger.
C) cash payments journal.
D) general ledger for accounts payable.

Question 51

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 52

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 by a supplier.

Question 53

Purchases returns and allowances are recorded in the

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

Question 54

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

A) accounts receivable.
B) cash sales.
C) installment sales.
D) layaway sales.

Question 55

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 56

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.