Chap 5 quiz

Question 1

Which of the following is not a Special Journal?
General Journal
Sales Journal
Purchases Journal
Sales Returns Journal

Answer 1

General Journal

Question 2

Miki Dolls Limited, a credit customer of Cute Dolls Makers, returned dolls that were of the wrong model to Cute Dolls Makers. Which Special Journal should Cute Dolls Makers record the transaction in ?
Purchases Journal
Sales Returns Journal
Purchases Returns Journal
Purchases Returns Journal

Answer 2

Sales Returns Journal

Question 3

Name the four Special Journals

Answer 3

Purchases Journal
Sales Returns Journal
Purchases Returns Journal
Purchases Returns Journal

Question 4

State the purpose of the Purchase Journals

Answer 4

records purchase of goods on credit from suppliers

Question 5

State the purpose of the Purchase Returns Journals

Answer 5

records the return of goods to credit suppliers

Question 6

State the purpose of the Sales Journals

Answer 6

records the sale of goods on credit to customers

Question 7

State the purpose of the Sales Returns Journals

Answer 7

records the return of goods from credit customers

Question 8

Explain three advantages of using Special Journals

Answer 8

Ease of retrieving information
prevents overcrowding of the General ledger
improve work efficiency and productivity

Question 9

Explain what trade discount is, and why and when it is given

Answer 9

A deduction off the list price of goods or services.
Given to encourage customers to buy in bulk, to encourage customer patronage and loyalty, and to clear excess or outdated goods