1) A credit sale of $3,275 to a customer would result in:
a) a debit to the accounts receivable account in the general ledgerand a debit to the customer's account in the accounts receivablesubsidiary ledger.
b) a credit to the accounts receivable account in the generalledger and a credit to the customer's account in the accountsreceivable subsidiary ledger.
c) a debit to the accounts receivable account in the general ledgerand a credit to the customer's account in the accounts receivablesubsidiary ledger.
d) a credit to sales and a credit to the customer's account in theaccounts receivable subsidiary ledger.
2) Credit card expense may be classified as:
a) a "discount" deducted from sales to get net sales
b) a selling expense
c) an administrative expense
d) all of these
e) only a and b
3) A promissory note received from a customer in exchange for an account receivable:
a) is a cash equivalent for the recipient
b) is an account receivable for the recipient
c) is a note receivable for the recipient
d) is a short-term investment for the recipient
e) is a note payable for the recipient
4) The person who signs a note receivable and promises to pay the principal and interest is the:
a) maker
b) payee
c) holder
d) receiver
e) owner
5) The accounting principle that requires financial statements(including notes) to report all relevant information about theoperations and financial condition of a company is called:
a) relevance
b) full disclosure
c) evaluation
d) materiality
e) matching