Name:
Class:
Date:
Indicate whether the statement is true or false.
1. The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.
a.
True
b.
False
2. The total amount of credit card and debit card sales transactions are recorded as a debit to cash, since the business will
receive cash for the entire amount.
a.
True
b.
False
3. Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of
customers.
a.
True
b.
False
4. Sales Tax Payable has a normal credit balance.
a.
True
b.
False
5. The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger
account.
a.
True
b.
False
6. Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is
received.
a.
True
b.
False
7. Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary.
a.
True
b.
False
8. A terminal summary is also known as a Z tape.
a.
True
b.
False
9. The amount of sales tax collected is a liability of a business until paid to the government.
a.
True
b.
False
10. A batch report is a detailed report of cash sales during a specific period of time.
a.
True
b.
False
Name:
Class:
Date:
Indicate the answer choice that best completes the statement or answers the question.
11. Most businesses receive cash for credit and debit card sales
a.
at the end of the business day.
b.
by the start of the next business day.
c.
within 2–3 days after batching out.
d.
on the first day of the next month.
12. Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale
should be recorded in the
a.
sales journal on May 23.
b.
cash receipts journal on May 23.
c.
sales journal on June 6.
d.
cash receipts journal on June 6.
13. The amount of cash received for a sale on account of $1,080.00 when the cash is received within the 2% discount
period is
a.
$1,080.00.
b.
$1,062.00.
c.
$1,058.40.
d.
$1,053.60.
14. A business should post sales on account transactions to the accounts receivable subsidiary ledger frequently to
a.
ensure the customer is invoiced for the sale.
b.
avoid errors in posting.
c.
follow generally accepted accounting principles.
d.
ensure each customer account will show an up–to-date balance.
15. The amount of sales tax on a sale is calculated as the price of goods
a.
plus the sales tax rate.
b.
times the sales tax rate.
c.
minus the sales tax rate.
d.
divided by the sales tax rate.
16. When merchandise is sold on account and sales tax is also collected,
a.
Accounts Receivable is credited for the total sale and sales tax.
b.
the Accounts Receivable balance is increased.
c.
Sales is debited for the price of the goods.
d.
the sales tax is not reported.
17. Credit terms of 2/10, n/30 mean that if the account is paid in
a.
2 days, a 10% discount will be allowed.
b.
10 days, a 2% discount will be allowed.
c.
10 days, a 30% discount will be allowed.
d.
30 days, a 2% discount will be allowed.
18. For a sale on account of $1,000.00 plus sales tax of $80.00, the amount recorded in the Accounts Receivable amount
column of a sales journal is
a.
$1,080.00.
b.
$1,000.00.
c.
$920.00.
d.
$80.00.
Directions: Select the one term that best fits each definition. Print the letter identifying your choice on the line to the left
Name:
Class:
Date:
of the statement.
a.
accounts receivable ledger
b.
batch report
c.
batching out
d.
cash receipts journal
e.
cash sale
f.
markup
g.
point-of-sale (POS) terminal
h.
sales discount
i.
sales journal
j.
sales tax
k.
schedule of accounts receivable
l.
selling price
m.
terminal summary
19. A specialized computer used to collect, store, and report all the information about a sales transaction.
20. The report that summarizes the cash and credit card sales of a point-of-sale terminal.
21. The process of preparing a batch report from a point-of-sale terminal.
22. A special journal used to record only cash receipt transactions.
23. A cash discount on a sale taken by the customer.
24. The amount a business receives from the sale of an item of merchandise.
25. A subsidiary ledger containing all accounts for charge customers.
26. A special journal used to record only sales of merchandise on account.
27. A sale in which the customer pays for the total amount of the sale at the time of the transaction.
28. A report of credit card sales produced by a point-of-sale terminal.
29. A tax on a sale of merchandise or services.
30. The amount a business adds to the cost of merchandise to establish the selling price.
31. A listing of customer accounts, account balances, and total amount due from all customers.
Name:
Class:
Date:
Name:
Class:
Date: