$1.$The main reason most businesses do not use only a General Journal is:

a $.$a General Journal is much too inefficient.

b $.$a General Journal is prone to many errors.

c $.$two or more clerks cannot use the General Journal at the same time.

d $.$both A and C are correct.

$2.$Cost of goods sold is:

a $.$total cost of inventory purchases during the period.

b $.$total cost of returns for the period.

c $.$total cost of purchases less ending inventory.

d $.$total cost of merchandise sold during the period.

$3.$Gross profit is:

a $.$sales revenue less cost of goods sold.

b $.$sales revenue less sales returns and allowances.

c $.$sales revenue less inventory.

d $.$sales revenue less operating expenses.

$4.$Merchants who buy goods at distributor's prices for resale to their customers may be known as:

a $.$merchandisers$.$

b $.$retailers$.$

c $.$distributors$.$

d $.$All of the above are correct.

$5.$Kristi$\text{'}$s pottery sold $250$tiles at $ $25\mathrm{.}00$each to a charge customer, terms $1/10,$n $/30.$The tiles cost Kristi's $ $10\mathrm{.}00$each$.$ Which entry is required to record the inventory adjustment for this transaction under a perpetual system?

a $.$Debit Inventory for $ $2,500$ ; credit Tile Sales for $ $2,500$

b $.$Debit Accounts Receivable for $ $2,500$ ; credit Inventory for $ $2,500$

c $.$Debit Cost of Goods Sold for $ $2,250$ ; debit Purchase Discounts for $ $250$ ; credit Inventory $ $2,500$

d $.$Debit Cost of Goods Sold for $ $2,500$ ; credit Inventory for $ $2,500$

$6.$Lisa$\text{'}$s Blankets and Bedding had a sale of $ $375$to a charge customer, terms $1/15,$n $/30.$Lisa should record the sale portion of this transaction as follows:

a $.$debit Accounts Receivable $ $375$ ; credit Sales $ $375.$

b $.$debit Cash $ $375$ ; credit Sales $ $375.$

c $.$debit Accounts Receivable $ $371\mathrm{.}25$ ; debit Sales Discounts $ $3\mathrm{.}75$ ; credit Sales $ $375.$

d $.$debit Sales $ $375$ ; credit Accounts Receivable $ $375.$

$7.$Lanny$\text{'}$s Levers sold $50$levers at $ $45\mathrm{.}00$each to a customer on account, terms $2/15,$n $/30.$The levers cost Lanny's $ $20\mathrm{.}00$each$.$ Which entry is required to record the sale portion of this transaction?

a $.$Debit Cash for $ $2,250$ ; credit Lever Sales for $ $2,250$

b $.$Debit Accounts Receivable for $ $2,205$ ; credit Lever Sales for $ $2,205$

c $.$Debit Accounts Receivable for $ $2,205$ ; debit Sales Discount for $ $45,$and credit Lever Sales for $ $2,250$

d $.$Debit Accounts Receivable for $ $2,250$ ; credit Tile Sales for $ $2,250$

$8.$Entries to customers' accounts for credit sales are posted in the

a $.$accounts receivable subsidiary ledger.

b $.$accounts payable subsidiary ledger.

c $.$fixed asset subsidiary ledger.

d $.$cash subsidiary ledger.

$9.$The normal balance of the accounts receivable subsidiary ledger is

a $.$credit$.$

b $.$debit$.$

c $.$It does not have a normal balance.

d $.$Not enough information provided.

$10.$Accounts of a single type $($ i $.$ e $.,$Accounts Receivable $)$are kept in this form of ledger.

a $.$supplemental ledger

b $.$additional ledger

c $.$subsidiary ledger

d $.$general ledger

$11.$The purpose of the accounts receivable subsidiary ledger includes all of the following except:

a $.$to keep a running balance of creditor's accounts.

b $.$to keep a running balance of each customer's account.

c $.$to provide supporting information for the general ledger control account.

d $.$to provide information to help collect the customer's account.

$12.$If a credit memorandum is issued, what account will be increased on the seller's books?

a $.$Accounts Receivable

b $.$Accounts Payable

c $.$Sales Discount

d $.$Sales Returns and Allowances

$13.$The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger. This error will cause:

a $.$the net income for the period to be overstated.

b $.$the net income for the period to be understated.

c $.$the control account to not agree with the subsidiary ledger.

d $.$the assets to be overstated.

$14.$Which of the following statements about subsidiary ledgers is most accurate?

a $.$The subsidiary ledger accounts will never equal the control account in the general ledger.

b $.$The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.

c $.$The subsidiary ledger accounts will equal the amount in the Sales account.

d $.$All of these answers are correct.

$15.$The accounts receivable subsidiary ledger

a $.$is organized in alphabetical order.

b $.$is not kept in the same book as Accounts Receivable.

c $.$should equal the controlling account in the general ledger.

d $.$All of the above are correct.