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Accounting Basics: Lesson 11: MCQ

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Question 1 of 20;5.0 Points;Payment of $99 for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable for $100, but no mention was made of the subsidiary ledger account. This error will cause the;A. net income for the period to be overstated.;B. net income for the period to be understated.;C. control account to not agree with the subsidiary ledger.;D. assets to be overstated.;Question 2 of 20;5.0 Points;The principal ledger containing all the balance sheet and income statement accounts is the _______ ledger.;A. general;B. creditors?;C. customers?;D. subsidiary;Question 3 of 20;5.0 Points;A Sold Merchandise for Cash subject to a sales tax accepting cash will be recorded with a;A. credit to an asset account.;B. debit to a liability account.;C. debit to Capital.;D. None of the above;Question 4 of 20;5.0 Points;Kristi?s Pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?;A. Debit Cash $5,000, credit Tile Sales $5,000;B. Debit Accounts Receivable $4,050, credit Tile Sales $4,050;C. Debit Accounts Receivable $4,050, debit Sales Discount $50.00, credit Tile Sales $5,000;D. Debit Accounts Receivable $5,000, credit Tile Sales $5,000;Question 5 of 20;5.0 Points;Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.;A. $5,000.00;B. $9,500.00;C. $10,000.00;D. $9,900.00;Question 6 of 20;5.0 Points;When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the _______ account.;A. master;B. subsidiary;C. receivable;D. controlling;Question 7 of 20;5.0 Points;Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 6% sales tax.;A. $1,000.00;B. $1,030.00;C. $1,060.00;D. $1,090.00;Question 8 of 20;5.0 Points;If a credit memorandum is issued, which account will be increased on the seller?s books?;A. Accounts Receivable;B. Accounts Payable;C. Sales Discount;D. Sales Returns and Allowances;Question 9 of 20;5.0 Points;The collection on an account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause the;A. the net income for the period to be understated.;B. the net income for the period to be overstated.;C. the control account to not agree with the subsidiary ledger.;D. the assets to be overstated.;Question 10 of 20;5.0 Points;Which statement about subsidiary ledgers is most accurate?;A. The subsidiary ledger accounts will never equal the control account in the general ledger.;B. The Accounts Receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.;C. The subsidiary ledger accounts will equal the amount in the Sales account.;D. All of the above;Question 11 of 20;5.0 Points;If a credit memorandum is issued, which account will be decreased on the seller?s books?;A. Accounts Receivable;B. Accounts Payable;C. Sales Discount;D. Sales Returns and Allowances;Question 12 of 20;5.0 Points;A characteristic of a schedule of Accounts Receivable is that;A. it contains a list of customers? names with balances.;B. the total is equal to the Accounts Receivable control account at the end of the month.;C. it?s prepared at the end of the month.;D. All of the above;Question 13 of 20;5.0 Points;Sue?s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a;A. debit to Sales Returns and Allowances for $132.50.;B. debit to Sales Returns and Allowances for $125.00.;C. credit to Sales Tax Payable for $7.50.;D. debit to Accounts Receivable for $132.50.;Question 14 of 20;5.0 Points;Entries to customers? accounts for sales are posted in the _______ subsidiary ledger.;A. Accounts Receivable;B. Accounts Payable;C. Fixed Asset;D. Cash;Question 15 of 20;5.0 Points;The normal balance of the Accounts Receivable subsidiary ledger is;A. credit.;B. debit.;C. It doesn?t have a normal balance.;D. Not enough information has been provided.;Question 16 of 20;5.0 Points;Unlimited Materials sold goods for $2,000 plus 6% sales tax to a charge customer, terms n/30. Which entry is required to record this transaction?;A. Debit Accounts Receivable $2,120, credit Sales Tax Payable $120, credit Sales $2,000;B. Debit Cash $2,000, credit Sales $2,000;C. Debit Accounts Receivable $2,000, credit Sales $2,000;D. Debit Accounts Receivable $2,120, credit Sales $2,120;Question 17 of 20;5.0 Points

 

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