Accounting Chapter 10 Test

38 terms by sthames14 

Create a new folder

Advertisement Upgrade to remove ads

customer

a person or business to whom merchandise or services are sold

sales tax

a tax on a sale of merchandise or services

sales journal

a special journal used to record only sales of merchandise on account

cash sale

a sale in which cash is recived for the total amount of the sale at the time of transaction

credit memorandum

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

point-of-sale terminal

a computer used to collect, store, and report all the information of sales transaction

terminal summary

the report that summarizes the cash and credit card sales from a point-of-sale terminal

batch report

a report of credit card sales produced by a point-of-sale terminal

batching out

the process of perparing a batch report of credit card sales from a point-of-sale terminal

cash receipts journal

a special journal used to record only cash receipt transactions

sales discount

a cash discount on sales taken by a customer

sales return

credit allowed a customer for the sales price of merchandise, resulting in a decrease on the vendor's accounts receivable

sales allowance

credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable

credit memorandum

a form prepared by the vendor showing teh amount deducted for returns and allowances

false

most states do not require a business to collect sales tax from customers

true

sales tax rates are usually stated as a percentage of sales

true

a sale of merchandise increases the revenue of a business

true

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

false

a sale on account is not the same as a charge sale

false

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

false

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

false

at the end of the week, all credit card slips are gathered together, sorted by issuing bank, and mailed indicidually to to each of the banks to collect payment

true

all cash receipts, including cash sales and credit card sales, are reorded in the cash receipts journal

true

the total of a terminal summary can be reorded as a single cash sales transaction

true

for cash and credit card slaes, the asset accout Cash is debited for the total of slaes and sales tax, but the revenue account sales is credited only for the total of slaes

true

the revenue account sales has a normal credit balalnce

false

the liability account sales tax payable has a normal debit balance

true

the source document for cash recieved on account form a customer is a receit

false

when cash is received on account, the cash account balance increasess and teh accounts receivable account balance increases

true

when a sales discount is taken a customer pays less cash than the incoive amount pericously recorded in the in the sales account

false

the account sales discount increases sales

true

maintaning a separate account for sales discounts provides business managers with informaton to evaluate whether a slaes discount is a cost effective method

true

if a cusomer dose not pay the amount owed within the sales discount period, the full invoice amount is due.

true

after the cash receipt journal is proved at the end of the month, cash is proved

false

all transactions can be recorded in a special jounral

false

credit may be granted to a customer only when merchandise is returned

false

sales returns and sales allowances increase the amount of sales

true

the account sales returnes and allowances is a contra account

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set