true false questions 1 grouping all transactions involving cash payments together in 4301950
True / False Questions
1. Grouping all transactions involving cash payments together in the cash payments journal strengthens the audit trail.
2. Cash Short or Over is an expense account when it has a debit balance.
3. If cash is over, it is entered in the Other Account Credit column of the cash receipts journal and the figure is circled.
4. The individual amounts in the Sales Credit column of the cash receipts journal are posted to the accounts receivable subsidiary ledger.
5. Amounts that appear in the Other Accounts Credit section of the cash receipts journal require individual posting to the general ledger.
6. After a multicolumn special journal such as a cash receipts journal is totaled, it should be proved to be sure that the debits and credits in the journal are equal.
7. Purchases Discounts is a contra cost of goods sold account.
8. No end-of-month posting is required for the total of the Other Accounts Debit column of the cash payments journal.
9. The individual amounts in the Accounts Payable Debit column of the cash payments journal are posted to the accounts payable subsidiary ledger.
10. The entry to replenish petty cash includes a debit to Petty Cash Fund and a credit to Cash.