Which is false concerning use of special journals? Select one: a. Purchase of any items on account are recorded in the purchases journal. Acquisitions of any items for cash are recorded in the cash disbursements journal. b. Transactions that cannot be appropriately recorded in a special journal are recorded in the general journal. c. Only cash purchases are recorded in the cash disbursements journal. d. Only sales of merchandise on account are recorded in the sales journal. Cash sales are recorded in the cash receipts journal.

Which is false concerning use of special journals? Select one: a. Purchase of any items on account are recorded in the purchases journal. Acquisitions of any items for cash are recorded in the cash disbursements journal. b. Transactions that cannot be appropriately recorded in a special journal are recorded in the general journal. c. Only cash purchases are recorded in the cash disbursements journal. d. Only sales of merchandise on account are recorded in the sales journal. Cash sales are recorded in the cash receipts journal.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 5QY

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Similar questions

Can a sales journal be used to record sales on account and a cash sale? Why or why not?
Purchases on account of merchandise for resale would be recorded in the _______________. a. Sales journal b. Purchases journal c. Cash receipts journal d. Cash payments journal e. None of the above
Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?
We record purchases of inventory for cash in which journal(s)?
There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.
Which of the following statements is false with regard to a Cash Receipts Journal?: All receipts of cash from customers should be recorded in it Receipts of cash from the owner should not be recorded in it Receipt of cash from cash sales should be recorded in it. Receipt of cash from borrowing should be recorded in it.
If a business uses special journals (single purpose sales and purchases journals), which of the following statements are not correct? 1. All purchases of inventory on account are recorded in the purchases journal ii. All cash received, except from cash sales, is recorded in the cash receipts journal iii. All payments are recorded in the cash payments journal iv. A general journal is not necessary v. All sales transactions are recorded in the sales journal Ⓒa. i, ii, iii Ⓒb. ii, iii, iv OC NV,V Od. v Ⓒe ii, iv, v
Which of the following documents associated with the purchases and cash disbursements cycle is most likely to lead to a journal entry that debits inventory and credits accounts payable? A Purchase requisition, purchase order and receiving report B Purchase order, receiving report and invoice C Purchase requisition, receiving report and invoice D None of these
Which of following functions should be segregated?a. opening the mail and recording cash receipts in the journalb. authorizing credit and determining reorder quantitiesc. shipping goods and preparing the bill of ladingd. providing information on inventory levels and reconciling the bank statement
Which of the following statements is not correct? Multiple Choice The cash register proof is used to enter the cash sales and sales tax in the cash receipts journal. The cash receipts journal has separate columns for debits to Cash, credits to Accounts Receivable, credits to Sales, and credits to Sales Tax Payable. The entry to record the receipt of a promissory note to replace an open account is recorded in the cash receipts journal. In accounting, the term "cash" includes checks, money orders, and funds on deposit in a bank as well as currency and coins.
Which statement is NOT correct for an expenditure system with proper internal controls?a. Cash disbursements maintain the check register.b. Accounts payable maintains the accounts payable subsidiary ledger.c. Accounts payable is responsible for paying invoices.d. Accounts payable is responsible for authorizing invoices.
Explain why a comparison of sales and inventory records would reveal a situation in which cash sales are not being recorded and cash from those sales is being stolen.