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Accounting problems

1) Would you say that Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal.
True or False

2) Sales revenue minus sales returns and allowances and sales discounts equals: (a) Gross margin (b)Income from Operations (c) Cost of goods sold (d) Net sales.

3) If the balance on the bank statement does not equal the balance in the company's then:
(a) The bookkeeper made a mistake (b) The bank made a mistake (c)Both the bank and the bookkeeper made a mistake (D) It is perfectly normal for the two balances to be different.

4) The entry to record the return of $30 of inventory to a supplier to under the Perpetual inventory system is recorded with a debt to:
(a) accounts payable and a credit to purchase discounts. (b) Purchase returns and allowances and a credit to accounts payable. (c) Accounts payable and a credit to inventory (d) inventory and a credit to accounts payable.

5) The column total for Other Accounts in the cash payments journal is not posted to the general ledger.
TRUE OR FALSE

6) If an individual paid a creditor on account. Assuming the use of special journals,this entry would be recorded in which book:
(a) Cash receipts journal (b) Purchase Journal (c) General Journal (d) Cash Payments Journal.

7) All of the following would be on the book side of a bank reconciliation except:

a) Bank recorded a $2,000 deposit as $200
b) Collection of note receivable for $1,000
c) Non sufficient funds check for $75.00
d) Service fee of $20.00

Solution Preview

1) Would you say that Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal.
True or False

Answer: False

Credit postings to the accounts receivable general ledger account comes only from the cash receipts journal. The general journal will be used to record all adjusting and closing entries.

2) Sales revenue minus sales returns and allowances and sales discounts equals: (a) Gross margin (b)Income from Operations (c) Cost of goods sold (d) Net sales.

Answer: d) Net sales

In order to find the net sales, we need to deduct sales returns and allowances and sales discounts from sales revenue.

3) If the balance on the bank statement does not equal the balance in the company's then:
(a) The bookkeeper made a mistake (b) The bank made a mistake (c)Both the bank and the bookkeeper made a mistake (D) It is perfectly normal for the two balances to be different. ...

Solution Summary

This solution is comprised of a detailed explanation to answer accounting problems such as should you say that Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal.

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