Accounting Chapter 11

The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves Accounts Receivable and the subsidiary ledger accounts.

• True

• False

Net income increases a corporation's total stockholder's equity.

• True

• False

A corporation's Dividends account is a temporary account.

• True

• False

The normal account balance of Purchases Returns and Allowances is a debit.

• True

• False

An entry in the general journal that affects Accounts Payable also affects a vendor's account in the accounts payable ledger.

• True

• False

A corporation can decide if and when to declare a dividend.

• True

• False

The normal account balance of Sales Returns and Allowances is a credit.

• True

• False

A sales return that credits the customer's account is recorded in the general journal.

• True

• False

Credit allowed for part of the purchase price of merchandise that is not returned does not change the balance of the customer's accounts payable.

• True

• False

A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.

• True

• False