Accounting Journals and Entries Flashcard

Front

Which of the following best defines a "Journal" in accounting? A form for recording transactions in chronological order, A summary of all company assets, A report of annual profits and losses, A list of all employees in a company

Back

A form for recording transactions in chronological order

Front

What is the main difference between a Simple Journal Entry and a Compound Journal Entry?

Back

Simple Journal Entry includes one debit and one credit, Compound affects more than two accounts.

Front

Which type of journal would a business use to record all cash received, including cash sales?

Back

Cash Receipts Journal

Front

A company wants to track the total costs that can be attributed to the creation of a product. Which accounting term best describes this?

Back

Cost of Goods Sold

Front

A retailer is analyzing their accounting records. Which journal would they most likely use to record sales of merchandise on credit?

Back

Sales Journal

Front

Which of the following best defines "Sales Returns" in accounting?

Back

When customers give merchandise back to a business for a credit or cash refund

Front

What is a "Sales Allowance"?

Back

When a business grants a deduction in the selling price of an item.

Front

Which scenario best illustrates a "Sales Discount"? Options: A customer returns a defective product for a refund, A business offers a lower price if the buyer pays early, A business increases the price due to high demand, A customer exchanges one product for another

Back

A business offers a lower price if the buyer pays early

Front

A customer purchases goods and later receives a deduction in the selling price without returning the goods. Which accounting term describes this situation?

Back

Sales Allowance

Front

A business offers a 2% reduction in the invoice amount if payment is made within 10 days. What is this an example of?

Back

Sales Discount