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38 terms

Accounting Chapter 10 Test

STUDY
PLAY
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