9.4   Learning Objective 9-4

 

1) A record showing the activity and the balances owed by each customer is called the:

A) general ledger.

B) sales journal.

C) cash receipts journal.

D) accounts receivable subsidiary ledger.

2) Accounts of a single type are kept in this ledger:

A) supplemental ledger.

B) additional ledger.

C) subsidiary ledger.

D) None of these answers are correct.

 

3) When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the:

A) master account.

B) subsidiary account.

C) receivable account.

D) controlling account.

4) Recording to the accounts receivable subsidiary ledger is done:

A) daily.

B) monthly.

C) quarterly.

D) annually.

 

5) Every controlling account must have its own:

A) revenue ledger.

B) general ledger.

C) subsidiary ledger.

D) general journal.

 

6) The principal ledger containing all the balance sheet and income statement accounts is the:

A) general ledger.

B) creditors’ ledger.

C) customers’ ledger.

D) subsidiary ledger.

 

7) Entries to customers’ accounts for sales are posted in the:

A) accounts receivable subsidiary ledger.

B) accounts payable subsidiary ledger.

C) fixed asset subsidiary ledger.

D) cash subsidiary ledger.

8) A characteristic of a schedule of accounts receivable is that:

A) it contains a list of customers’ names with balances.

B) the total is equal to the accounts receivable control account at the end of the month.

C) it is prepared at the end of the month.

D) All of these answers are correct.

 

9) Which of the following statements about subsidiary ledgers is most accurate?

A) The subsidiary ledger accounts will never equal the control account in the general ledger.

B) The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.

C) The subsidiary ledger accounts will equal the amount in the Sales account.

D) All of these answers are correct.

 

10) Payment for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period—$99 was received. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable $100, but no mention was made of the subsidiary ledger account. This error will cause:

A) the net income for the period to be overstated.

B) the net income for the period to be understated.

C) the control account to not agree with the subsidiary ledger.

D) the assets to be overstated.

 

 

 



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