Financial Accounting Final Exam (In-Class) True or False 1. A sales journal is u

Question

Financial Accounting Final Exam (In-Class) True or False 1. A sales journal is used to record credit sales. A) True B) False 2. The purchases journal is used to record cash purchases of merchandise A) True False 3. A subsidiary ledger is a listing of individual accounts with a common characteristic A) True B) False 4·The dollar value assigned to goods purchased will differ under the different inventory methods of specific identification, FIFO, LIFO, and weighted average. A) True B) False ecurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system. A) True B) False 6. A special journal is used to record and post transactions of a similar type. A) True B) False 7. A) B) The maturity date of a note refers to the date the note is signed. True False 8. The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectibloe. A) True B) False 9. When using the allowance method of accounting for uncollectible accounts, the entry to write off Harold's uncollectible account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable- Harold. A) True B) False 10. When using the allowance method of accounting for uncollectible accounts, the recovery of a bad debt would be recorded as a debit to Cash and a credit to Bad Debts Expense.

Explanation / Answer

Q- 1 ) True............ Sales Journal is for credit sales and cash journal is for cash sales

Q - 2 ) False

Q - 3) True

Q - 4) True

Q - 5) True

Q - 6) False.............It is used of dissimilar or unrelated transactions

Q - 7) False .......... Maturity date is the date on which payment is due

Q - 8) True

Q - 9 ) True

Q - 10 ) False ............ credit to Accounts receivables

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