1. Which is statement is not true about accounts receivable subsidiary accounts?

a. Each is a record of a credit customer

b. They receive daily postings from the special journals
c. A check is placed in the post. Ref. column of the subsidiary account after each posting
d. Their balances are used to prepare a schedule of accounts receivable

2. Which statements is not true regarding accounts payable controlling account?

a. It receives daily postings from the special purpose journals

b. It is found in the general ledger
c. Its balances at the end of the month should equal the total in the schedule of accounts
payable
d. It has an account number

3. The basis for classifying assets as current or noncurrent is the period of time normally
required by the business to turn cash invested in

a. Noncurrent assets back into current assets

b. Receivables back into cash, or 12 months whichever is shorter
c. Inventories back into cash, or 12 months whichever is longer
d. Inventories back into cash, or 12 months whichever is shorter

4. A company has a credit card sale for P1,000 for the day. If there is a 5% by credit companies,
then the company’s entries to record the sales and the eventual receipt of cash would
include a

a. Credit to sales for P900

b. Debit to accounts receivable – credit card companies for P1,050
c. Credit to credit card revenue for P50
d. Debit to cash for P950