Question

2 points   

QUESTION 14

1. Petty Cash is a large amount of cash kept on hand for in-house expenditures.

   True

   False

2 points   

QUESTION 15

1. In replenishing the Petty Cash account Petty Cash is debited.

   True

   False

2 points   

QUESTION 16

1. The Purchase Journal is used to handle all purchases of merchandise.

   True

   False

2 points   

QUESTION 17

1. The General Ledger and the Subsidiary Ledgers is co-equal.

   True

   False

2 points   

QUESTION 18

1. The Cash Receipts Journal is used to record incoming cash for merchandise related transactions only.

   True

   False

2 points   

QUESTION 19

1. The General Ledger Accounts Receivable and Accounts Payable accounts are contolling accounts.

   True

   False

2 points   

QUESTION 20

1. In posting from the columnar (special) journals, the columnar totals are posted to the subsidiary ledgers.

   True

   False

Answer 1

Solution

14. False

Explanation :

Petty cash is a small amount of cash kept on hand for in house expenditures.

15. False

Explanation:

In replenishing a petty cash account, various expenses such as entertainment, fuel or other miscellaneous expenses are debited and cash account is credited.

16. False

Purchase journal is used to handle all credit purchase whether to merchandise or equipment or other credit purchases.

Post rest of questions separately, please.