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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Accounting for Sales, Accounts Receivable, and Cash Receipts

Multiple Choice Questions


1	What is a business called that sells goods that it purchases for resale?
		A)	Service business
		B)	Manufacturing business
		C)	Retail business
		D)	Merchandising business


2	A contains accounts of a single type.
		A)	Sales journal
		B)	Subsidiary ledger
		C)	General ledger
		D)	Special journal


3	When entering a credit sale in the sales journal, which is true?
		A)	Accounts receivable debit, Sales credit
		B)	Accounts receivable credit, Sales debit
		C)	Cash debit, Sales credit
		D)	Sales debit, cash debit


4	Which account would not be a column in a sales journal?
		A)	Accounts Receivable
		B)	Prepaid GST
		C)	GST Payable
		D)	Sales


5	A sales return and allowance is to which account?
		A)	Credit to sales return & allowance
		B)	Debit to sales return & allowance
		C)	Debit to merchandise inventory
		D)	Credit to merchandise inventory


6	What type of account is Sales Discount?
		A)	Charge account
		B)	Control account
		C)	Contra account
		D)	Special account


7	A reduction from list price, is called?
		A)	Reduction
		B)	Cash Discount
		C)	Trade discount
		D)	Sales discount


8	To what authority does business's that are GST registered remit their GST report to?
		A)	Federal government
		B)	Provincial government
		C)	Municipal government
		D)	Employment insurance


9	When does the posting to the accounts receivable ledger usually take place?
		A)	Daily
		B)	At the end of the year
		C)	Quarterly
		D)	Monthly


10	What is the primary purpose of a sales journal?
		A)	Makes work for the accountant
		B)	Shows the company the purchases made last month
		C)	Shows the individual accounts of all customers
		D)	Saves time in posting and it strengthens the audit trail

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