Chapter 9 Accounting 10e

The normal balance for a Purchase Returns and Allowances is a credit.

• True

• False

A journal is proved and ruled only at the end of the fiscal period.

• True

• False

To begin a new journal page, the totals from the previous journal page are carried forward to the next journal page.

• True

• False

The cost account purchases issued only to record the value of merchandise purchased.

• True

• False

Recording entries in a journal with special amount columns saves time.

• True

• False

All purchase transactions, including purchases made on account and purchases made with cash are recorded in the purchases journal.

• True

• False

A purchase on account transaction increases the amount owed to a vendor.

• True

• False

Buying supplies on account is recorded in the general journal.

• True

• False

A special journal entry is made to show the amount of a trade discount.

• True

• False

A cash payments journal is a special journal used to record only cash payment transactions.

• True

• False