chapter 11 true + false

true

Transactions that cannot be recorded in a special journal are recorded in a general journal

true

A general journal entry posted to Accounts Payable will also be posted to a subsidiary ledger account

false

Credit allowed for part of the purchase price of merchandise that is not returned results in an increase in the customer’s account

true

A debit memorandum prepared by a customer results in the customer recording a debit to the vendor account

false

An entry recorded in a general journal will either increase all accounts or decrease all accounts affected by the entry

false

The normal account balance of Purchases Returns and Allowances is a debit

true

An entry in the general journal that affects Accounts Payable also affects a vendor’s account in the accounts payable ledger

true

In a computerized accounting system, transactions recorded in a general journal are posted immediately after they are entered

true

A completed general journal page should always be reviewed to be sure that all postings have been made

false

A credit memorandum issued by a vendor results in the vendor recording a debit to the customer’s account

true

The normal account balance of Sales Returns and Allowances is a debit

true

A sales return that credits the customer’s account is not recorded in a cash receipts journal because the transaction does not involve cash

false

Entries in the general journal only affect account balances in general ledger accounts

true

The correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves only subsidiary ledger accounts

true

Net income increases a corporation's total stockholders' equity

false

A corporation's Dividends account is a permanent account similar to a proprietorship's drawing account

false

Dividends can be distributed to stockholders only by formal action of a corporation's chief financial officer

false

All corporations are required to declare dividends

true

The stockholders' equity account, Dividends, has a normal debit balance

true

Most corporations pay a dividend by writing a single check to an agent, such as a bank, that distributes checks to individual stockholders