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32 which of the following statements is not correct a in accounting the term quot ca 4301951


32. Which of the following statements is not correct? 

A. In accounting, the term “cash” includes checks, money orders, and funds on deposit in a bank as well as currency and coins.

B. The cash register proof is used to enter the cash sales and sales tax in the cash receipts journal.

C. The entry to record the receipt of a promissory note to replace an open account is recorded in the cash receipts journal.

D. The cash receipts journal has separate columns for debits to Cash, credits to Accounts Receivable, and credits to Sales and Sales Tax Payable.

33. A cash sale of merchandise would be recorded in 

A. the sales journal.

B. the general journal.

C. the cash receipts journal.

D. the cash payments journal.

34. Upon collection of the amount due on an interest-bearing promissory note from a customer, the accountant would debit Cash, credit Notes Receivable, and 

A. debit Interest Expense.

B. credit Interest Income.

C. credit Interest Expense.

D. debit Interest Income.

35. The entry to record an additional cash investment by the owner is recorded in 

A. the cash payments journal.

B. the cash receipts journal.

C. the general journal.

D. the purchases journal.

36. Beckett Co. sold merchandise on account for $10,600, terms 2/10, n/30. Freight charges of $250 were prepaid by the seller and added to the invoice. The customer returned $800 of merchandise before making the payment then paid the invoice within the discount period. What is the amount Beckett Co. received? 

A. $9,854

B. $9,604

C. $9,849

D. $9,833

37. Merchandise is sold for $8,820, terms 1/10, n/30. Prior to payment, the customer returned $560 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is: 

A. $82.60

B. $165.20

C. $88.20

D. $93.80

38. Which of the following statements is correct? 

A. The entry to record the payment of an invoice within the cash discount period would include a debit to the Purchases Discounts account.

B. To record a cash purchase of merchandise, the accountant would debit Purchases and credit Cash.

C. A transaction that is properly recorded in the cash payments journal will always include the recording of an amount in the Cash Debit column.

D. Purchase discounts is a contra revenue account.

39. To record the payment of a purchase invoice when a cash discount is taken, the accountant would 

A. debit Accounts Payable, credit Purchases Discounts, and credit Cash.

B. debit Accounts Payable, debit Purchases Discounts, and credit Cash.

C. debit Accounts Payable and credit Cash.

D. debit Purchases, credit Purchases Discounts, and credit Cash.

40. Merchandise costing $5,600 with terms of 1/10, n/30, with transportation costs of $320 included on the invoice (not included in the $5,600) is sold on account. If the bill is paid within ten days, the amount of the purchase discount is. 

A. $59.20.

B. $56.00.

C. $3.20.

D. $52.80

41. The entry to replenish a petty cash fund includes 

A. a debit to Cash and a credit to Petty Cash.

B. a debit to Petty Cash Fund and a credit to Cash.

C. debits to various expense accounts and a credit to Petty Cash Fund.

D. debits to various expense accounts and a credit to Cash.



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