Accounting - Study Mode

[#2091] In which of the following order, data is entered into the Journal?
Correct Answer

(D) Chronological order

Explanation

Solution: In Chronological order, data is entered into the Journal. Journal entries are typically entered in chronological order and debits are entered before credits – debits are entered in a column to the left, and credits are entered to the right.

[#2092] Which of the following accounts will be credited if a company purchases building for cash?
Correct Answer

(D) Cash account

Explanation

Solution: Cash account will be credited if a company purchases building for cash. Cash is credited because cash is an asset account that decreased because cash was used to pay the bill.

[#2093] Discount for quick repayment of debt is normally referred to as
Correct Answer

(C) Cash discount

Explanation

Solution: Discount for quick repayment of debt is normally referred to as Cash discount. It is called cash discount which might be offered or received.

[#2094] Which of the following specialized journal records "goods returned by customers"?
Correct Answer

(D) Sales return journal

Explanation

Solution: Sales return journal records "goods returned by customers". Sales Return (Journal) Book Sales return books are used to record the goods returned by customers to them on credit.

[#2095] Sales on credit is recorded in which of the following journal?
Correct Answer

(B) Sales journal

Explanation

Solution: The sales journal is used to record all of the company sales on credit. Most often these sales are made up of inventory sales or other merchandise sales.