Special Journals Accounting Quiz

1. A business sells merchandise to a customer on account. In which journal should this transaction be recorded?

A) General Journal

B) Cash Receipts Journal

C) Sales Journal

D) Purchases Journal

Correct Answer: C. The Sales Journal is dedicated exclusively to recording sales of merchandise made on credit (on account).

2. Which of the following transactions would be recorded in the Cash Receipts Journal?

A) Sale of merchandise on credit

B) Collection of cash from a customer on account

C) Purchase of equipment on account

D) Cash paid for monthly rent

Correct Answer: B. Any transaction where cash is received, including collections on customer accounts, is recorded in the Cash Receipts Journal.

3. If a business purchases store supplies on credit, and uses a single-column Purchases Journal designed only for merchandise, where should this transaction be recorded?

A) Purchases Journal

B) General Journal

C) Cash Payments Journal

D) Sales Journal

Correct Answer: B. A standard single-column Purchases Journal only records merchandise inventory bought on account. Buying other items like supplies on credit goes into the General Journal.

4. Every transaction recorded in the Cash Payments Journal will involve a credit to which account?

A) Cash

B) Accounts Payable

C) Purchases

D) Sales Disounts

Correct Answer: A. Because the Cash Payments Journal tracks all outflows of cash, every single entry requires a credit to Cash.

5. Where are adjusting and closing entries recorded?

A) Sales Journal

B) Cash Receipts Journal

C) Purchases Journal

D) General Journal

Correct Answer: D. Special journals only handle specific, repetitive daily operating transactions. Miscellaneous, adjusting, and closing entries are kept in the General Journal.

6. When using special journals, individual customer accounts in the Accounts Receivable Subsidiary Ledger are typically updated at what frequency?

A) Daily

B) Weekly

C) Monthly

D) Annually

Correct Answer: A. Individual subsidiary ledgers are updated daily to maintain accurate, up-to-date balances for each customer or supplier.

7. At the end of the month, the total of the Sales Journal is posted to the General Ledger as a:

A) Debit to Sales and Credit to Cash

B) Debit to Cash and Credit to Sales

C) Debit to Accounts Receivable and Credit to Sales

D) Debit to Sales and Credit to Accounts Receivable

Correct Answer: C. The summary column total of a Sales Journal represents total credit sales, which requires a debit to Accounts Receivable and a credit to Sales.

8. A cash sale of merchandise to a customer would be recorded in which journal?

A) Sales Journal

B) Cash Receipts Journal

C) General Journal

D) Purchases Journal

Correct Answer: B. Even though it is a sale, cash is involved. The rule of thumb is: if cash comes in, it must go in the Cash Receipts Journal.

9. What is the primary benefit of using column totals from special journals to post to the General Ledger?

A) It eliminates the need for a trial balance.

B) It avoids entries in the subsidiary ledgers.

C) It reduces repetitive, individual postings to the General Ledger.

D) It ensures that cash payments equal cash receipts.

Correct Answer: C. By accumulating transactions into special columns and posting only the totals monthly, special journals save significant time and keep the General Ledger clean.

10. A business returns defective merchandise originally bought on credit, but the vendor has not yet been paid. No cash is received. This transaction goes in the:

A) Cash Payments Journal

B) Purchases Journal

C) Cash Receipts Journal

D) General Journal

Correct Answer: D. A purchase return on account doesn't involve cash, nor is it a regular purchase or sale transaction. Therefore, it is handled via a manual entry in the General Journal.

Accounting Special Journals Quiz