Accounting I Chapter 10 Review Question Preview (ID: 22720)


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Sales Returns and Allowances is classified as
a) a contra revenue account
b) a contra cost account
c) a revenue account
d) a contra expense account

The amount of cash received for a sale on account of $500 plus sales tax of $25 when the cash received within the 2 percent discount period is
a) $514.50
b) $500
c) $525
d) $490

Recording revenue from transactions at the time goods or services are sold is an application of the accounting concept
a) Realization of Revenue
b) Matching Expenses with Revenue
c) Business Entity
d) Objective Evidence

Prior to paying sales tax to the state, what is the sales tax amount classified as?
a) Liability
b) Asset
c) Expense
d) Revenue

Sales Discount is classified as
a) a contra revenue account
b) a contra cost account
c) a revenue account
d) a contra expense account

The normal balance for Sales Discount is
a) Debit
b) Credit
c)
d)

The normal balance for Sales Returns and Allowances is
a) Debit
b) Credit
c)
d)

The normal balance for Sales Tax Payable is
a) Credit
b) Debit
c)
d)

Sales Tax Payable is classified as
a) a liability account
b) a revenue account
c) a contra revenue account
d) a contra cost account

When cash is received for a sale on account within the discount period, the amount credited to Accounts Receivable is reduced by the amount of discount.
a) False
b) True
c)
d)

Using a terminal summary as a source document for weekly cash and credit card sales is an application of the accounting concept
a) Objective Evidence
b) Business Entity
c) Matching Expenses with Revenue
d) Realization of Revenue

Cash is proved when the Cash Debit Total from the cash receipts journal equals the next unused check stub.
a) False
b) True
c)
d)

The Sales Discount account decreases Sales.
a) True
b) False
c)
d)

The report that summarizes the cash and credit card sales of a point-of-sale terminal is called what?
a) Terminal Summary
b) Batch Report
c) Batching Out
d) Point-of-Sale Summary

A report of credit card sales produced by a point-of-sale terminal is called what?
a) Batch Report
b) Terminal Summary
c) Batching Out
d) Point-of-Sale Summary

A form prepared by the vendor showing the amount deducted for returns and allowances is called what?
a) Credit Memorandum
b) Debit Memorandum
c) Memorandum
d) Terminal Summary

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