Chapter 11 Accounting Study Guide – Flashcards
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Board of Directors
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A group of persons elected by the stockholders to govern a corporation.
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Credit Memorandum
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A for prepared by the vendor showing the amount deducted for returns and allowances
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Debit Memorandum
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A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance
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Declaring a Dividend
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Action by a board of directors to distribute corporate earnings to stockholders
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Dividends
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Earnings distributed to stockholders
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General Journal
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A journal with two amount columns in which all kinds of entries can be recorded
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Purchases Allowance
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Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor
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Purchases Return
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Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customers account payable to the vendor
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Retained Earnings
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An amount earned by a corporation and not yet distributed to stockholders
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Sales Allowance
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Credit allowed to a customer for part of the sales price of merchandising that is not returned, resulting in a decrease in the accounts receivable of the merchandising business
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Sales Return
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Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business
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True
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Transactions that cannot be recorded in a special journal are rerecorded in a general journal
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True
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A general journal entry posted to the accounts payable will also be posted to a subsidiary larger account.
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False
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Credit allowed for part of the purchase price of merchandise that is not returned results in an increase in the customer's account.
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True
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A debit memorandum prepared by customer results in the customer recording a debit to the vendor account.
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False
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An entry record in the general journal will either increase all accounts or decrease all accounts affected by the entry.
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False
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The normal account balance of purchases returns and allowances of the debit.
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True
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An entry in the general journal that affects Accounts payable also affects the vendor's account in the accounts payable ledger.
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True
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In a computerized accounting system transactions recorded in the general journal are posted immediately after they are entered.
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True
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A completed general journal page should always be reviewed to be sure that all postings have been made.
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False
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Credit memorandum issued by a vendor results in the vendor recording a debit to the customer's account.
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True
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The normal account balance of sales returns and allowances that debit.
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True
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A sales return that credits the customer's account Is not recorded in a cash receipts journal because the transaction does not involve cash.
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False
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Entries in the general journal only affect account balances in a general ledger accounts.
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True
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A correcting entry to correct a sale on account recorded to the wrong customer in the sales journal involves only subsidiary ledger accounts.
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True
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Net income increases a corporations total stockholders equity.
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False
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A Corporations dividends account is a permanent account similar to a proprietorship's drawing account.
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False
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Dividends can be distributed to stockholders only by formal action of corporations chief financial officer.
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False
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All corporations are required to declare dividends.
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True
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Stockholders equity count, dividends has a normal debit balance.
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True
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Most corporations pay a dividend by writing a single check to an agent such as a bank that distributes checks to individual stockholders.
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Bought Office supplies on account from Walton Supply Journal|Debit|Credit
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General Journal|Supplies Office|(Accounts Payable, Walton Supply)|
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Returned merchandise to Yeats Corporation Journal|Debit|Credit
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General Journal|(Accounts Payable, Yeats Corporation)|Purchases Returns and Allowances
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Granted Credit to Tim Thorton for merchandise returned, plus sales tax Journal|Debit|Credit
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General Journal|(Sales Return and Allowances, Yeats Corporation, Sales Tax Payable)|(Accounts Receivable, Tim Thorton)
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The board of directors declared a quarterly dividend Journal|Debit|Credit
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General Journal|Dividends|Dividends Payable
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Paid cash for quarterly dividend declared on December 15th Journal|Debit|Credit
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Cash Payments Journal|Dividends Payable|Cash
