A (1)

Individual amounts in the Accounts Payable Credit column of the purchases journal are posted often to the appropriate vendor accounts.

• True

• False

The accounting concepts used to record and report financial information are determined by the size, type, and complexity of the business.

• True

• False

The check number is placed in the Post. Ref. column of the cash payments journal during the posting process.

• True

• False

In a departmental accounting system, a notation is placed on each purchase invoice indicating the department to which the purchase applies.

• True

• False

Most businesses record purchase returns and allowances in the Purchases Returns and Allowances columns of the purchases journal.

• True

• False

The vendor number is placed in the Post. Ref. column of the purchases journal as the last step in the posting process.

• True

• False

To encourage early payment, a seller may offer a cash discount, which allows a deduction from the invoice amount.

• True

• False

The column totals of a special journal are only posted at the end of a month.

• True

• False

In a departmental accounting system, there will be an accounts payable account for each department.

• True

• False

When merchandise is returned, the vendor usually gives credit to the buyer.

• True

• False