Question

A special journal is an all-purpose journal where we can record any other transactions not captured in special journals.

True or False

A. Two common subsidiary ledgers are cash receipts and cash disbursements.

True or False

B. Individual transactions in the Sales Journal are regularly posted to customer accounts in the Accounts Payable ledger.

True or False

C. Account balances in the General Ledger and the subsidiary ledgers are tested for accuracy after posting is complete.

True or False

D. A special journal is any journal used for recording and posting transactions of a similar type.

True or False

E. If the total balance of the Accounts Receivable Ledger equals the total of the controlling Accounts Receivable account, then the individual accounts are presumed to be correct.

True or False

F. A company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a Cash Disbursements Journal, and a General Journal. A sales return for credit on account would be recorded in the

Multiple Choice

• Cash Disbursements Journal

• Accounts Receivable Ledger

• Sales Journal

• Cash Receipts Journal

• General Journal

• G. The sale of inventory may

  Multiple Choice

• decrease inventory

• initiate billing

• All of these

• create accounts receivable

• impact the Sales Journal

Answer 1

False

Reason : a special Journal is a journal where only a similar type of transactions are recorded. General journal is a journal where all other transactions which are not recorded in other special Journal are recorded.

A. False

Reason : Two common subsidiary ledgers are accounts Receivable subsidiary ledger and accounts Payable subsidiary ledger.

B. False

Reason : Individual transactions in sales journal are regularly posted to customers accounts in the accounts receivable ledger

C.True

Reason : Account balances in general ledger and subsidiary ledgers must be matched to check accuracy after posting is completed.

D. True

Reason : A special journal is a journal where only similar type of transactions are recorded and posted.

E. False

Reason: There may be mistakes in posting of individual accounts in control accounts receivable account. Only amount accuracy is known but not error of posting.

F. Accounts receivable ledger

Reason : Sales return on sales made on Credit will effect the amount receivable from the customer. therefore it is recorded in Accounts Receivable Ledger.

G. All of these

Reason : A sale of inventory reduces the inventory, a sale transaction initiate billing, a sale of inventory creates accounts receivable and also an entry is posted in sale journal.