QUESTION 31 Which of the following is true of a cash receipts journal? It ignore

Question

QUESTION 31 Which of the following is true of a cash receipts journal? It ignores the miscellaneous cash receipt transactions. In a cash receipts journal, collections on account are recorded in the Accounts In a cash receipts journal, the sales for cash will have entries in the Sales Revenue CR column. Receivable DR column and the Cash DR column. In a cash receipts journal, cash sales are recorded in the Accounts Receivable CR column and the Cash DR column. QUESTION 32 Which of the following is true of a control account? It is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements. © Its balance equals the sum of the balances in a group of related accounts in a subsidiary ledger. It holds individual accounts that support a general ledger account. O It is a valuation account from which balances are added to another account.

Explanation / Answer

For Question 31, Number 4 is correct. Cash sales are recorded in accounts Receivable CR columne and the CASH Dr column:

Cash Account Debit

To Account Receivable

For Question 32, Number 2 is correct. Its balance equals the sum of the balances in a group of related accounts in a subsidiary ledger.

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