Accounting 11 Unit 6

The correct journal entry for a business remitting PST to the government would be:

• debit PST payable, credit bank

• debit bank, credit PST payable

• debit tax expense, credit bank

• debit tax expense, credit PST payable

A business received a credit advice from its bank. When this transaction is recorded, which of the following will most likely be the account credited?

• capital

• a/p

• interest earned

• bank charges expense

A debit to GST Recoverable would mean a business

• purchased an item and paid GST

• remitted GST owing to the government

• sold an item and collected GST

• did none of the options

Which of the following statements about the journal is incorrect?

• it provides a chronological record of business transactions

• its is the book of original entry

• it can be used as a reference to verify information in the ledger

• it presents the financial position of the business

A business bought a building for $257,000 three years ago. The business was offered $315,000 to sell the building, but the real estate agent said it was actually worth $340,000. What should the value of the building be on the balance sheet?

• 257000

• 315000

• 340000

• 328000

A purchase invoice was received by a business. The journal entry for this transaction would be:

• debit supplies, credit a/p

• debit a/r, credit sales

• debit bank, credit sales

• debit a/p, credit equipment

Which of the following would not be a possible debit entry as a result of a transaction involving a cheque copy?

• a debit to car expense

• a debit to bank

• a debit to a/p

• a debit to supplies

A business had the following balances on the day it was to remit GST to the government: GST recoverable $3150, GST payable $4618. The cheque to the government should be for

• 1468

• 4618

• 3150

• 7768

Which of the following statements concerning the purchase invoice is false?

• the account credited is always a/p

• all journal entries for purchase invoices are the same

• the name of the vendor is usually printed at the top of the invoice

• terms of the sale are usually found on the invoice

When an item subject to provincial sales tax is sold by a business:

• the purchaser will debit PST recoverable

• the seller need not record the tax separately

• the seller will credit PST payable

• all the other answers are correct