ACC Ch 11 Review

In a computerized accounting system, transactions recorded on a general journal are

posted at the end of the month.

• True

• False

A completed general journal page should always be reviewed to be sure that all postings

have been made.

• 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 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

An entry recorded in a general journal will increase the account debited and decrease the account credited.

• True

• False

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

• True

• False

Dividends can be distributed to stockholders only by formal action of a corporation’s board of directors.

• True

• False