ACCOUNTING II - UNIT 2(Sales Journal Quiz)

What is the primary purpose of recording sales in the sales journal?

• To track inventory levels

• To record customer complaints

• To document all sales transactions on credit

• To calculate employee salaries

Which of the following is NOT typically included in a sales journal entry?

• Date of the transaction

• Customer's name

• Discount amount

• Purchase order number

When a sale is made on credit, which account is debited in the general ledger?

• Cash

• Sales Revenue

• Accounts Receivable

• Inventory

What does a credit to the Sales account in the sales journal indicate?

• A return of goods by the customer

• An increase in company revenue

• A payment made by the customer

• A correction of an error in the sales journal

Which document typically triggers the recording of a sale in the sales journal?

• Purchase order

• Sales invoice

• Receipt

• Delivery note

How often should sales be posted from the sales journal to the general ledger?

• Daily

• Weekly

• Monthly

• Quarterly

What is the effect of recording a sale on credit on the balance sheet?

• Decreases assets and increases liabilities

• Increases both assets and equity

• Increases assets and decreases equity

• Increases assets and increases liabilities

In a sales journal, a debit to the Accounts Receivable account indicates what?

• The customer has made a payment.

• The customer has been granted a discount.

• A sale has been made on credit.

• Goods have been returned by the customer.

Which of the following is a reason why businesses use a sales journal?

• To simplify the recording of cash sales

• To track inventory in real-time

• To consolidate credit sales transactions

• To calculate taxes on sales automatically

What happens if a sale is incorrectly recorded in the sales journal?

• It has no effect on the financial statements.

• It may lead to an overstatement or understatement of revenue.

• It automatically corrects itself in the next accounting period.

• It increases the company's tax liabilities immediately.