Welcome to... A Game of X’s and O’s

Rules Only one person is asked and can answer NO NOTES Go around the room in order 3 in a row wins the game If no team gets three in a row, whichever team gets 5 marks wins the game Best of 3 series Winning team gets a bonus point

Scoreboard X O Click Here if X Wins Click Here if O Wins

1 A cash discount on sales taken by a customer

1 Sales Discount Home

2 A form prepared by the vendor showing the amount deducted for returns and allowances

2 Credit Memorandum

3 T or F? Purchases and sales of merchandise are two major activities of a merchandising business

3 TRUE

4 The amount of sales tax on a sale is calculated as the price of goods _____ the sales tax rate

4 times

5 T or F? Cash is proved when the total of the Cash Debit column of a cash receipts journal equals the next unused check stub

5 FALSE

6 T or F? Sales invoices should be numbered in sequence, prepared in triplicate, used a source document for sales on account

6 TRUE

7 A special journal used to record only sales of merchandise on account is called a __________ _____________

7 Sales journal

8 T or F? The amount of sales tax collected is a liability of the business until paid to the government.

8 TRUE

9 A report of credit card sales produced by a point-of-sale terminal is called a _______ ________

9 Batch report

Scoreboard X O Click Here if X Wins Click Here if O Wins

1 The report that summarizes the cash and credit card sales of a POS Terminal is known as this:

1 Terminal Summary Home

2 T or F? When a customer is granted credit for merchandise returned, Accounts Receivable is debited

2 FALSE

3 T or F? Regardless of when merchandise is sold, revenue should be recorded when cash is received

3 FALSE

4 A sale in which a credit card is used for the total amount of the sale at the time of the transaction is known as a:

4 Credit Card Sale

5 A computer used to collect, store, and report all the information of a sales transaction is called a _______-____-______ ____________

5 Point-of-sale terminal

6 Sales Returns and Allowances is__________. A.An expense accountB. A revenue account C. A contra revenue account

6 C. A contra revenue account Home

7 Sales discounts are recorded in what special journal?

7 Cash Receipts Journal

8 The process for preparing a batch report of credit card sales from a POS terminal is called:

8 Batching out

9 T or F? A terminal summary reports total cash and credit card sales of a POS terminal

9 TRUE

Scoreboard X O Click Here if X Wins Click Here if O Wins

1 Credit allowed to a customer for part of the sales price of merchandise that is not returned

1 Sales allowance Home

2 T or F? Because Sales Discount is a contra account to Sales, its has a normal debit balance

2 TRUE

3 T or F? POS terminals use UPC symbols to obtain the description and the price of merchandise sold.

3 TRUE

4 When merchandise is sold on account and sales tax is also collected, the accounts receivable account balance is _____________

4 increased

5 Using a terminal summary as a source document for weekly cash and credit card sales is an application of the accounting concept _________ ______________

5 Objective evidence

6 What is the amount of cash received for a sale on account of $1, with sales tax of $80.00 when the cash is received within a 2 percent discount period?

6 $1,058.40

7 T or F? When cash is received for a sale on account within the discount period, the amount credited to A/R is reduced by the amount of the discount

7 FALSE (what is reduced?)

8 A form prepared by the vendor showing the amount deducted for returns and allowances is known as a ________ ______________

8 Credit memorandum

9 How many special journals are there for a merchandising business organized as a corporation?

9 5 special journals