Unlock the essentials of business finance with our comprehensive Accounting Chapter 10 Quiz! This expertly crafted quiz covers crucial concepts like Accounts Receivable Ledgers, Credit Memos, Sales Discounts, and more. Perfect for business and management students, it provides a thorough review of k...
Circle the letter of the Answer that corresponds to the displayed Question.
1
Question: Accounts Receivable Ledger
a) A separate ledger containing an individual account receivable for each customer, kept in either
alphabetical or numerical order.
b) An alphabetical or numerical listing of customer accounts and balances, usually prepared at the end
of the month.
c) Reductions in the price of merchandise granted by the seller because of defects or other problems
with the merchandise.
d) Merchandise returned by the customer for a refund.
Correct Answer: A
Explanation: The Accounts Receivable Ledger is a separate ledger that includes an individual account
receivable for each customer and is organized in either alphabetical or numerical order.
2
Question: Credit Memo
a) Discounts to encourage prompt payment by customers who buy merchandise on account.
b) A document issued when credit is given for merchandise returned or for allowance.
c) Merchandise returned by the customer for a refund.
d) A document that is generated to bill the customer to whom the sale was made.
Correct Answer: B
Explanation: A Credit Memo is a document issued when credit is given for merchandise returned or
for allowances.
3
Question: Sales Discounts
a) A transfer of merchandise from one business or individual to another in exchange for cash or a
promise to pay cash.
b) Merchandise returned by the customer for a refund.
c) An alphabetical or numerical listing of customer accounts and balances, usually prepared at the end
of the month.
d) To the seller, cash discounts are considered sales discounts.
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