7 Interactive Quiz A

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Interactive Quiz A http://highered.mcgraw-hill.com/sites/0072996536/student_view0/chapter7/interactive_quiz_a.html[6/22/2010 6:42:08 PM] Interactive Quiz A (See related pages) Results Reporter Out of 25 questions, you answered 7 correctly with a final grade of 28% 7 correct (28%) 17 incorrect (68%) 1 unanswered (4%) Your Results: The correct answer for each question is indicated by a . 1 INCORRECT If a company only has a small number of sales returns transactions for any given year, they may enter such transactions in the General Journal. If the number of sales returns is large a special journal for Sales Returns and Allowances could be established. If such a journal is established, which of the following statements is true? A) Credits to this journal will be to the Cash account B) Credits to this journal will be to the Inventory account C) Credits to this journal will be to Accounts Receivable account D) Credits to this journal will be to the Sales Revenue account E) None of the above is true Feedback: When a Sales Returns Journal is set up, its typical configuration is to have a column for debits to Sales Returns and Allowances and a column for credits to Accounts Receivable. 2 CORRECT A company may set up a control account for any account desired. However, some accounts are not as likely to need subsidiary ledgers as are other accounts. Which of the following accounts is least likely to be a controlling account? A) Owner's Withdrawals B) Common Stock C) Accounts Payable D) Merchandise Inventory E) All of the above Feedback: Many accounts are used as controlling accounts. Whenever individual items of similar nature are numerous and the company wants better control over the individual items, a control account with a subsidiary ledger or record is appropriate. Since the Owner's Withdrawals account is a contra-equity account and is used for a limited number of transactions, it is not likely to be a controlling account. 3 INCORRECT One of our customers always buys items from us on credit terms of 2/10, net 60. In order to find out if this customer has paid us any particular invoice, which of the following records would have to be examined? A) The balance sheet B) A listing of all of the Accounts Payable as of a specific date. C) The Accounts Payable Subsidiary Ledger D) The Cash Payments Journal E) The Accounts Receivable Subsidiary Ledger Feedback: Detailed information about a customer's account receivable will be found in the Accounts Receivable Subsidiary Ledger. 4 INCORRECT One of the special journals used by the Baxter Corporation is the Sales Journal. The company has not added any embellishments to the Sales Journal; its setup follows the format illustrated in the textbook. When posting items from the Sales Journal to the General Ledger, which of the following statements will
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7 Interactive Quiz A - Interactive Quiz A Home > Chapter...

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