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Honors Acct Chap 2 departmental (S, CR)

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The source document for a sales returns and allowances transaction is

a)

debit memorandum

b)

credit memorandum

c)

sales invoice

d)

receipt

2.

In a departmental business, when garden equipment is sold on account,

a)

Sales is debited.

b)

Sales-Garden is debited.

c)

Sales is credited.

d)

Sales-Garden is credited.

3.

Recording all sales at the time of sale, regardless of when payment is made, is an application of the

a)

Historical Cost concept.

b)

Matching Expenses with Revenue concept.

c)

Realization of Revenue concept

d)

Going Concern concept.

4.

A business offers a sales discount

a)

to get repeat business from the customer.

b)

to follow state laws.

c)

to encourage early payment.

d)

none of these.

5.

The terms 2/10, n/30 mean

a)

a 2% sales discount may be deducted if sales on account are paid within 10 days.

b)

all sales on account must be paid within 30 days.

c)

a 2% sales discount may be deducted if paid within 10 days or pay the entire bill within 30 days with no discount.

6.

One item of information available through a departmental accounting system is the

a)

net income or net loss for each department.

b)

administrative expenses for each department.

c)

total operating expenses for each department.

d)

gross profit from operations for each department.

7.

The source document for recording a transaction in a departmental sales journal is

a)

a cash register tape.

b)

a memorandum.

c)

a sales invoice

d)

an adding machine tape.

8.

When tennis equipment subject to sales tax is sold on account, Accounts Receivable is

a)

debited for the amount of merchandise sold.

b)

debited for the amount of merchandise sold plus the sales tax on the merchandise.

c)

credited for the amount of merchandise sold.

d)

credited for the amount of sales tax.

9.

The account credited when a customer returns merchandise or is granted an allowance is

a)

Accounts Payable/vendor name

b)

Sales

c)

Accounts Receivable/customer name

d)

Sales Returns & Allowance

10.

Over the weekend, your teacher sent you a picture from which city?

a)

Sandwich

b)

Sterling

c)

Dixon

d)

DeKalb