True/false chapter 10

accounting 1 ngl sync

the revenue account Sales has a normal credit balance

true

the liability account Sales Tax Payable has a normal debit balance

false

very few states in the United States require collecting a tax on sales of merchandise to customers

false

sales tax rates are usually stated as a percentage of sales

true

businesses must file reports with the proper government until and pay the amount of sales tax collected

true

the bank that issues the credit card bills the customer and collects the amount owed

true

equality of debits and credits in a special journal is proved at the end of the month

true

a person or business to whom merchandise or services are sold is a customer

true

sales tax is a tax on sale of merchandise or services

true

sales for cash and credit cards are recorded as a single cash sales transaction

true

purchases and sales of merchandise are the two major activities of a merchandising business

true

the realization of revenue accounting concept is applied when a sale is recorded at the time the sale is made

true

a cash sale is a sale in which a credit card is used for the total amount of the sale at the time of the transaction

false

sales journal is used to record both cash sales on account

false

the amount of sales tax collected is an asset of the business until paid to the state government

false

accounts receivable is an asset account with a normal debit balance

true

the account sales tax payable is increased by a debit and decreased by a credit

false

the source document for a cash sale is a cash register tape

true

charge customer accounts are summarized in a general ledger account titled accounts receivable

true

when cash is received on account, cash is increased and accounts receivable is increased

false

a special journal is used to record only cash receipts transactions is a cash receipts journal

true

a check mark in the post. ref. column means that amounts on that line need to be posted individually

false

a general ledger sorts and summarizes all information affecting income statements and balance sheet accounts

true

accounts payable is a single general ledger account that summarizes the total amount owed to all vendors

true

an account in a general ledger that summarizes all accounts in a subsidiary ledger is a controlling account

true

the balance of the controlling account accounts payable equals the total of all vendor account balances in the accounts payable subsidiary ledger

true

the number of transactions determines how often to post to a general ledger

true

when the balance of a vendor account is an accounts payable ledger is changed, the balance of the controlling account is unaffected

false

a vendor account is opened by writing the vendor name and vendor number on the heading of the ledger account

true

Each entry in the accounts payable column of a cash payments journal affects the vendor name in the account title column

true

when using an accounts receivable ledger, the total amount due from all customers is summarized in a single general ledger account

true

amounts recorded in a general amount columns are posted individually to the general ledger account named in the account title column

true

the account form for a vendor has a credit balance column because accounts payable are liabilities and liabilities have normal credit balances

true

entries in a cash receipts journal affect account balances in the accounts payable ledger and the general ledger

false