Self Assessment Quizzes

CHAPTER 14: Section 2 Analyzing Sales Transactions

	1.	The time allowed for payment to be made on a credit sale is called its

		a.	term
		b.	time
		c.	allocation
		d.	allowance

	2.	A price reduction granted for damaged goods kept by the customer is called a

		a.	sales return
		b.	credit memorandum
		c.	sales allowance
		d.	cash sale

	3.	Any merchandise returned for credit or a cash refund is called a

		a.	sales return
		b.	credit memorandum
		c.	sales allowance
		d.	cash sale

	4.	A book that contains detailed data summarized to a controlling account in the general ledger is called a

		a.	diary
		b.	control summary
		c.	subsidiary ledger
		d.	substitute ledger

	5.	The sale of merchandise that will be paid for at a later date is called a

		a.	cash sale
		b.	sale on account
		c.	taxable sale
		d.	liability sale

	6.	Charge customers balances are recorded in a ledger called

		a.	a list of our customers
		b.	Accounts Receivable
		c.	a list of our charge customers
		d.	Accounts Payable

	7.	Sales tax is recorded as a

		a.	debit to Sales Tax Payable
		b.	credit to Sales Tax Payable
		c.	debit to Sales Tax Expense
		d.	credit to Sales Tax Expense

	8.	To make a purchase, charge customers may use

		a.	letter of recommendation
		b.	credit report
		c.	a credit card
		d.	a letter of credit

	9.	The journal entry for a cash refund is

		a.	debit Cash in Bank, credit Sales Returns and Allowances
		b.	debit Sales Returns and Allowances, credit Cash in Bank
		c.	debit Cash in Bank, credit Sales
		d.	debit Sales, credit Cash in Bank

	10.	The form that lists the details of a sale is called

		a.	a sales slip
		b.	an invoice
		c.	a credit slip
		d.	sales transaction record