WorksheetsAccounting Chapter 10
Total questions: 16
Worksheet time: 8mins
A batch report is a detailed report of cash sales during a specific period of time. (Page 295)
True
False
Sales Tax Payable has a normal credit balance. (Page 286)
True
False
Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of customers. (Page 286)
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. (Page 284)
True
False
The amount of sales tax collected is a liability of a business until paid to the government. (Page 286)
True
False
The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account. (Page 302)
True
False
The total amount of credit card and debit card sales transactions are 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. (Page 294)
True
False
Separate transactions are recorded for cash, credit card, and debit card totals listed on a terminal summary. (Page 297)
True
False
The balance of Accounts Receivable should equal the total of the schedule of accounts receivable. (Page 308)
True
False
Most businesses receive cash for credit and debit card sales . . . (Page 297)
at the end of the business day.
by the start of the next business day.
within 2-3 days after batching out.
on the first day of the next month.
The amount of sales tax on a sale is calculated as the price of goods . . . (Page 288)
plus the sales tax rate.
times the sales tax rate.
minus the sales tax rate.
divided by the sales tax rate.
Credit terms of 2/10, n/30 mean that if the account is paid in . . . (Page 299)
2 days, a 10% discount will be allowed.
10 days, a 2% discount will be allowed.
10 days, a 30% discount will be allowed.
30 days, a 2% discount will be allowed.
A business should post sales on account transactions to the accounts receivable
subsidiary ledger frequently to . . . (page 290)
ensure the customer is invoiced for a sale.
avoid errors in posting.
follow generally accepted accounting principles.
ensure each account will show an up-to-date balance.
When merchandise is sold on account and sales tax is collected, . . . (Page 288)
Accounts Receivable is credited for the total sale and sales tax.
the Accounts Receivable balance is increased.
Sales is debited for the price of the goods.
the sales tax is not reported.
A company records a $1000 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded in the . . . (Page 284)
sales journal on May 23.
cash receipts journal on May 23.
sales journal on June 6.
cash receipts journal on June 6.
