Accounting Review Quiz #1

A special journal used to record only cash receipt transactions.

• cash receipts journal
• sales journal
• general journal
• ledger

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

• point-of-sale terminal
• sales journal
• sales allowance
• sales discount

A cash discount on sales taken by a customer.

• sales discount
• sales allowance
• credit memorandum
• batch report

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

• sales journal
• cash receipts journal
• general journal
• sales allowance

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

• terminal summary
• cash receipts journal
• sales journal
• credit memorandum

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

• batching out
• credit memorandum
• sales journal
• cash receipts journal

Using a terminal summary as a source document for cash and credit card sales is the concept

• Matching Expenses with Revenue
• Objective Evidence
• Realization of Revenue
• Business Entity

Sales invoices should be

• numbered in sequence.
• prepared in duplicate.
• used as source documents for sales on account.
• the other three are all correct.

When merchandise is sold on account and sales tax is also collected, 

• Accounts Receivable is credited for the total sale and tax.
• the Accounts Receivable account balance is increased.
• Sales is debited for the price of the goods.
• the sales tax is not reported.

For a sale on account of $1,000 with sales tax of $80, Accounts Receivable would be debited

• $1,080
• $1,000
• $920
• $80