Question 1

Sold merchandise on account would be recorded with:

Accepted Answer

A)  a debit to an asset account.
B)  a debit to a liability account.
C)  a debit to Capital.
D)  None of these are correct.E) None of the above
F) C) and D)

Question 2

If management wanted to determine if customers were returning goods at a higher rate than usual it could use the Sales Returns and Allowances account to analyze the information.

Accepted Answer

A) True 
 B)False

Question 3

Sales tax collected by the seller increases the seller's total revenue.

Accepted Answer

A) True 
 B)False

Question 4

Every controlling account must have its own:

Accepted Answer

A)  revenue ledger.
B)  general ledger.
C)  subsidiary ledger.
D)  general journal.E) B) and C)
F) C) and D)

Question 5

A wholesale customer returned merchandise having already paid for it within the cash discount period.The return will be recorded with:

Accepted Answer

A)  a credit to an asset account.
B)  a credit to a liability account.
C)  a credit to Capital.
D)  None of these are correct.E) B) and C)
F) A) and D)

Exam 9: Sales and Cash Receipts

A wholesale customer returned merchandise having already paid for it within the cash discount period.The return will be recorded with:

Correct Answer
verified

Sold merchandise on account would be recorded with:

Correct Answer
verified

Every controlling account must have its own:

Correct Answer
verified

Sales tax collected by the seller increases the seller's total revenue.

Correct Answer
verified

If management wanted to determine if customers were returning goods at a higher rate than usual it could use the Sales Returns and Allowances account to analyze the information.

Correct Answer
verified

Exam 9: Sales and Cash Receipts

A wholesale customer returned merchandise having already paid for it within the cash discount period.The return will be recorded with:

Correct AnswerverifiedShow Answer

Sold merchandise on account would be recorded with:

Correct AnswerverifiedShow Answer

Every controlling account must have its own:

Correct AnswerverifiedShow Answer

Sales tax collected by the seller increases the seller's total revenue.

Correct AnswerverifiedShow Answer

If management wanted to determine if customers were returning goods at a higher rate than usual it could use the Sales Returns and Allowances account to analyze the information.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified