Accounting 11 - Unit 7

Choose the correct statement concerning the format of the journal

• Explanations for most transactions may be omitted

• in every journal entry, debits must equal credits

• the year is entered only on the first page

• the accounts to be debited are indented

PST Payable is a(n) ______________ account.

• expense

• asset

• liability

• revenue

Which of the following statements about the journal is incorrect?

• it provides a chronological record of business transactions

• it presents the financial position of the business

• it is the book of original entry

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

A debit to GST Recoverable would mean a business

• remitted GST owing the government

• sold an item and collected GST

• purchased an item and paid GST

• none of the other answers

Retail sales tax is levied by the provincial government

• true

• false

Which account will be debited: A sale of goods on account

• a/r

• sales

• cash

• equipment

Which account will be debited: Received payment for a sale on account

• a/r

• cash

• sales

• equipment

Which account will be debited: Purchased office equipment on account (no PST)

• PST payable

• office equipment

• cash

• a/p

Which account will be debited: Paid natural gas bill received today (only GST applies)

• GST Recoverable

• GST Payable

• PST Recoverable

• PST Payable

Which account will be debited: Remitted GST to the federal government

• a/r

• a/p

• GST Recoverable

• GST Payable