Accounting: Chapter 10 Review

A cash discount on sales taken by a customer is known as a....

• sales discount

• sales journal

• sales allowance

• sales credit

Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable.

• sales allowance

• sales discount

• cash discount

• credit card sale

A sale in which a credit card is used for the total amount of the sale at the time of the transaction.

• credit card sale

• credit memorandum

• sales allowance

• point-of-sale terminal

A computer used to collect, store, and report all the information of a sales transaction.

• point-of-sale terminal

• sales journal

• batching out

• batch report

A special journal used to record only cash receipt transactions.

• cash receipts journal

• sales journal

• general journal

• cash sales journal

A form prepared by the vendor showing the amount deducted for returns and allowances.

• credit memorandum

• sales allowance

• sales journal

• sales invoice

The report that summarizes the cash and credit card sales of a point-of-sale terminal.

• terminal summary

• batch report

• sales memorandum

• sales journal

A special journal used to record only sales of merchandise on account.

• sales journal

• purchases journal

• cash receipts journal

• general journal

The process of preparing a batch report of credit card sales from a point-of-sales terminal.

• batching out

• batch reporting

• sales discounting

• terminal summary

Purchases and sales of merchandise are the two major activities of a merchandising business.

• True

• False