SAGE 50 - Ch. 5 (with Complete Solutions)

The purchases journal may be used for the following - A) credit or pay later purchase transactions B) cash purchase transactions C) purchase transactions paid by cheque D) all of the above correct answers D) all of the above Transactions entered in the purchases journal will allow all but one of the following - A) recording of all necessary details surrounding the invoice B) only one type of transaction C) more than one type of transaction D) modifying of the invoice form correct answers B) only one type of transaction The payments journal may be used for the following - A) full cash payment to vendors B) partial cash payment to vendors C) cash purchase transactions D) all of the above correct answers D) all of the above Transactions entered in the payments journal will not allow the following - A) recording of all necessary details surrounding the payment B) editing the cheque number C) entering a payment amount that is more than the outstanding balance to create a credit balance D) editing the payment amount correct answers C) entering a payment amount that is more than the outstanding balance to create a credit balance When you post a purchase invoice the following accounts are updated - A) all properly linked accounts B) only the purchases and accounts payable general ledgers C) only the purchases and accounts payable subsidiary ledgers D) only the purchases, accounts payable ledgers and GST paid correct answers A) all properly linked accounts How would you enter a purchase with payment - A) open the payments journal and choose invoice with cheque B) open the purchases journal and choose invoice and pay later C) open the payments journal and choose vendor with cheque D) open the payments journal and choose make other payment correct answers D) open the payments journal and choose make other payment