Multiple Choice Questions

31. In a firm that uses special journals, a sale of merchandise on credit is recorded in the 

A. cash payments journal.

B. cash receipts journal.

C. sales journal.

D. purchases journal.

32. In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the 

A. cash receipts journal.

B. sales journal.

C. cash payments journal.

D. general journal.

33. In a firm that uses special journals, the sale of merchandise for cash is recorded in the 

A. cash payments journal.

B. cash receipts journal.

C. sales journal.

D. purchases journal.

34. In a firm that uses special journals, the purchase of merchandise on credit is recorded in the 

A. cash payments journal.

B. cash receipts journal.

C. purchases journal.

D. general journal.

35. In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the 

A. cash payments journal.

B. cash receipts journal.

C. purchases journal.

D. general journal.

36. In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the 

A. cash payments journal.

B. cash receipts journal.

C. sales journal.

D. purchases journal.

37. In a firm that uses special journals, an additional cash investment received from the owner is recorded in the 

A. cash receipts journal.

B. sales journal.

C. cash payments journal.

D. general journal.

38. In a firm that uses special journals, the issuance of a check to pay a creditor on account is recorded in the 

A. cash payments journal.

B. cash receipts journal.

C. sales journal.

D. purchases journal.

39. The Sales account is classified as 

A. a liability account.

B. an asset account.

C. a contra account.

D. a revenue account.

40. A firm that sells goods that it purchases for re-sale is a 

A. service business.

B. merchandising business.

C. manufacturing business.

D. non-profit business.