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Finacre - PQ2

Total questions: 15

Worksheet time: 4mins

Name
Class
Date
1.

Which of the following statements is correct?

a)

The sales discount column is included in the cash receipts journal

b)

The purchases journal records all purchases of merchandise whether for cash or on account

c)

The cash receipts journal records sales on account

d)

Merchandise returned by the buyer is recorded by the seller in the purchases journal

2.

When special journals are used:

a)

all purchase transactions are recorded in the purchases journal

b)

all cash received, except from cash sales, is recorded in the cash receipts journal

c)

all cash disbursements are recorded in the cash payments journal

d)

a general journal is not necessary

3.

If a customer returns goods for credit, an entry is normally made in the

a)

cash payments journal

b)

sales journal

c)

general journal

d)

cash receipts journal

4.

Supplies were purchased on credit and the entry was recorded in the Purchases Journal. When a part of this supply purchase is returned to the vendor, the entry to record the return will be in the general journal. What will be the journal entry for this return?

a)

debit Cash and credit Supplies

b)

debit Supplies and credit Accounts Receivable

c)

debit Accounts Payable and credit Supplies

d)

debit Supplies and credit Cash

5.

When special journals are used, a General Journal is

a)

still required

b)

not needed

c)

used only to record sales returns and allowances

d)

used only to record cash deposits of owner investments

6.

Which of the following statements is false with regard to a Cash Receipts Journal?

a)

All receipts of cash from customers should be recorded in it

b)

Receipts of cash from the owner should not be recorded in it

c)

Receipt of cash from cash sales should be recorded in it

d)

Receipt of cash from borrowing should be recorded in it

7.

In which special journal should the following transaction be recorded: Services are purchased on account?

a)

Sales journal

b)

Purchases journal

c)

Cash receipts journal

d)

Cash disbursements journal

8.

In which special journal should the following transaction be recorded: Cash collected from credit account customer?

a)

Sales journal

b)

Purchases journal

c)

Cash receipts journal

d)

Cash disbursements journal

9.

In which special journal should the following transaction be recorded: Cash purchase of equipment?

a)

Sales journal

b)

Purchases journal

c)

Cash receipts journal

d)

Cash disbursements journal

10.

In which journal should the following transaction be recorded: Adjusted prepaid insurance account at end of accounting period?

a)

Sales journal

b)

Purchases journal

c)

Cash receipts journal

d)

General Journal

11.

The depreciation of buildings shall be recorded in the

a)

Sales journal

b)

Purchases journal

c)

Cash receipts journal

d)

General Journal

12.

Rare transactions which do not fall within the scope of special journals are recorded in the

a)

Subsidiary Ledger

b)

General Journal

c)

Worksheet

d)

Trial balance

13.

Cash sales are recorded in the sales journal.

a)

True

b)

False

14.

A ____, which simplifies the journalizing and posting process, has special columns that are used for recording specific types of business transactions

a)

General Journal

b)

Subsidiary Ledger

c)

General Ledger

d)

Special Journal

15.

Most transactions recorded in the cash receipts journal result in a debit to Accounts Receivable and a credit to Cash.

a)

True

b)

False