Chapter 10 True/False

Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary.

• True

• False

The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.

• True

• False

The amount of sales tax collected is a liability of a business until paid to the government.

• True

• False

The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account.

• True

• False

A batch report is a detailed report of cash sales during a specific period of time.

• True

• False

Sales Tax Payable has a normal credit balance.

• True

• False

Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of customers.

• True

• False

Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.

• True

• False

The total amount of credit card and debit card sales transactions is recorded as a debit to cash, since the business will receive cash for the entire amount.

• True

• False

A terminal summary is also known as a Z tape.

• True

• False