Deck 15: Subsudiary Ledgers and Special Journals

Question 1

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Answer 1

False

Question 2

Control accounts are always located in the general ledger.

Answer 2

False

Question 3

A company would not likely use subsidiary ledgers for

A)inventory.
B)retained earnings.
C)equipment.
D)accounts receivable.

Answer 3

D

Question 4

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Question 5

The one characteristic that all entries recorded in a cash receipts journal have in common is

A)a credit to the Cash account.
B)that they all represent collections from customers.
C)that they originate from the sales of merchandise.
D)a debit to the Cash account.

Question 6

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Question 7

A subsidiary ledger frees the general ledger from details of

A)individual balances.
B)external transactions.
C)internal transactions.
D)the control account.

Question 8

The balance of a control account in the general ledger

A)must always be zero.
B)must equal the amount of total assets.
C)is always greater than the composite balance of individual accounts in a related subsidiary ledger.
D)must equal the composite balance of individual accounts in a related subsidiary ledger.

Question 9

Adjusting entries are recorded

A)only on the work sheet.
B)only in the general ledger.
C)in the general journal.
D)in the special journals.

Question 10

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Question 11

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

Question 12

Special journals are used to record unique transactions which do not occur very often.

Question 13

The one characteristic that all entries recorded in a multiple-column purchases journal have in common is a

A)credit to the Cash account.
B)debit to the Cash account.
C)debit to the Accounts Payable account.
D)credit to the Accounts Payable account.

Question 14

If a transaction cannot be recorded in a special journal

A)the company must refuse to enter into the transaction.
B)it is recorded in the general journal.
C)it is recorded directly in the accounts in the general ledger.
D)it is recorded as an adjustment on the work sheet.

Question 15

A cash payments journal should not be used to record transactions which require payment by check.

Question 16

A sales journal is used to record

A)only cash sales of merchandise.
B)sales of all assets on credit and for cash.
C)only credit sales of merchandise.
D)credit sales of merchandise, sales returns and allowances, and sales discounts.

Question 17

Correcting entries are journalized in

A)a special journal.
B)the general journal.
C)the general ledger.
D)a correcting journal.

Question 18

If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded in the

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

Question 19

A single-column purchases journal indicates that

A)only purchases of merchandise on account can be recorded.
B)all purchases of merchandise can be recorded.
C)all acquisitions on account can be recorded.
D)another column must be added so that debits and credits can be recorded.

Question 20

A subsidiary ledger provides up-to-date information on specific account balances.

Question 21

Cross-footing a cash receipts journal means

A)the equality of debits and credits in the journal has been proved.
B)each line of the journal has a horizontal total.
C)the columns of the journal have been cross-referenced.
D)all necessary postings have been completed.

Question 22

If a certain type of transaction occurs with great frequency, it is more efficient to create a ______________ to record that type of transaction.

Question 23

Stewart's Sandwiches uses a sales journal.An entry in this journal represents a

A)debit to Cash; credit to Sales.
B)debit to Accounts Receivable; credit to Sales.
C)debit to Sales Discounts; credit to Cash.
D)debit to Accounts Payable; credit to Sales Returns and Allowances.

Question 24

The process of totaling the columns of a journal is termed

A)ruling.
B)columnizing.
C)sizing.
D)footing.

Question 25

Which of the following would not be an appropriate heading for a column in the cash receipts journal?

A)Cash
B)Accounts Payable
C)Sales Discounts
D)Sales

Question 26

The entries in a sales journal will show

A)all sales of merchandise.
B)the cash sales of the company.
C)the credit sales of merchandise.
D)all sales of the company.

Question 27

The accounts receivable _____________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Question 28

Entries in the cash payments journal are made from

A)sales invoices.
B)purchase invoices.
C)prenumbered checks.
D)canceled checks.

Question 29

If a company uses a multiple-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

A)Accounts Payable
B)Merchandise Inventory
C)Store Supplies
D)Office Supplies

Question 30

An (x) below the "Other Accounts" column in a cash receipts journal indicates the

A)total has been posted to the general ledger.
B)total is not posted to the general ledger.
C)column has been footed.
D)column has been cross-footed.

Question 31

Posting a sales journal to the accounts in the general ledger requires a

A)debit to Cash and a credit to Sales.
B)debit to Sales and a credit to Inventory.
C)debit to Accounts Receivable and a credit to Merchandise Inventory.
D)debit to Accounts Receivable and a credit to Sales.

Question 32

Journalizing in a sales journal will not

A)require a debit to Accounts Receivable.
B)show a sales invoice number.
C)affect the reference column of the journal.
D)include a credit to the Sales account.

Question 33

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

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

Question 34

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

A)Cash column
B)Sales Discount column
C)Accounts Receivable column
D)Other Accounts column

Question 35

Proving the equality of the totals in the columns of multiple-column special journals is called

A)posting to the subsidiary.
B)debiting and crediting.
C)footing and crossfooting.
D)updating the master file.

Question 36

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

A)Accounts Receivable; accounts receivable subsidiary accounts
B)Accounts receivable subsidiary accounts; Sales
C)Accounts Receivable; Sales
D)Accounts Receivable; Merchandise Inventory

Question 37

Which of the following economic events would not be recorded in the cash receipts journal?

A)Cash sales of merchandise
B)Collections of accounts receivable
C)Cash from sale of land
D)Cash purchases of merchandise

Question 38

If a company records merchandise it returns to suppliers in the general journal, then

A)a posting must be made only to the accounts payable control account.
B)a posting must be made only to the accounts payable subsidiary ledger account.
C)a dual posting must be made.
D)there will be a debit to Merchandise Inventory.

Question 39

Cash from sales of merchandise will be recorded in the

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

Question 40

Which of the following is not a true statement about the daily posting of the sales journal?

A)There is a debit posting to accounts in the accounts receivable subsidiary ledger.
B)There is no credit posting.
C)The reference column in the sales journal is checked when the posting is complete for each entry in the journal.
D)The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.

Question 41

Transactions that cannot be entered in a special journal are recorded in the _______________, and if control and subsidiary accounts are involved, there must be a _______________ posting.

Question 42

The use of special journals often saves time in the _______________ process.

Question 43

If a company maintains special journals, sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.