accounting

The trade discount of less 10% - 5% means that the customer can have 15% discount on its purchases.

• True

• False

Collection of the maturity value of a note will increase both total assets and owner’s equity.

• True

• False

The balance of the Sales Returns and Allowances account is subtracted from the balance of the Accounts Receivable account in the Assets section of the Statement of Financial Position.

• True

• False

An equal Trial Balance is a proof that no errors are recorded.

• True

• False

When transactions are entered in a general journal, the asset accounts are listed first, followed by the liability and owner's equity accounts.

• True

• False

Offering sales discounts on credit sales can benefit a seller by decreasing the delay in receiving cash and reducing future collections efforts.

• True

• False

Freight In and Purchases Returns and Allowances are deducted from Purchases to determine the cost of goods sold.

• True

• False

The shipping term FOB Shipping Point, Collect requires a journal entry on the seller.

• True

• False

Returns of merchandise decrease the liability of a seller.

• True

• False

Transactions are recorded in either a journal or a ledger, but not in both.

• True

• False