Exam Notes Sales and Cash Receipts Cycle | SUAS | 2026/2027

SUA - Sales and Cash Receipts
Exam-Graded A ith Correct W




Ans ers 2026/2027
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There are steps after the occurrence of transactions until their inclusion in financial
statements. hich of the follo ing occurs first?
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Record in Journals
Prepare documents hen needed w



Post to Ledgers
Preparing financial statements - correct Ans er-Prepare documents hen needed
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hich of the follo ing is NOT a Balance Sheet item impacted by the Sales and Cash
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Receipts Cycle?
Cash
Accounts Receivable
Sales
D. Allo ance for doubtful accounts
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All of the above are impacted - correct Ans er-Sales
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A receiving report and bill of lading/shipping document are examples of documents that
are prepared ___ the transaction occurs - correct Ans er-At the same time
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A sales invoice and vendors invoice are examples of documents that are prepared ___
the transaction occurs - correct Ans er-After
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___ are used for the initial recording of individual transactions. - correct Ans er-Journals
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T/F - The use of journals to record all transactions minimizes the likelihood of failing to
record transactions and makes it easier to subsequently determine hat as recorded -
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correct Ans er-Truew




___ follo the requirements of a double entry recording system. - correct Ans er-Journals
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The ___ journal is used for mostly non repetitive transactions such as error corrections,
adjusting entries,
and transactions not appropriate for any of the special journals - correct Ans er-General
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, The ___ journals are a convenient ay to summarize similar, repetitive types of
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transactions - correct Ans er-Special
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The ___ ___ summarizes the transactions in journals by account balances. - correct
Ans er-General ledger
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T/F - The number and description of general ledger accounts depend on the needs of
management. - correct Ans er-True w




All transactions must be transferred (posted) from the ___ to the ___ periodically,
usually monthly. Journals, General ledger - correct Ans er- w




Transactions from ___ journal(s) are usually totaled monthly and are then posted in the
general ledger, hereas individual transactions from the ___ journal(s) are posted
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directly to the general ledger - correct Ans er-Specialized, General
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Detail is usually kept in a ___ ___, hich acts as support to the general ledger and
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agrees in total to the corresponding general ledger account - correct Ans er-Subsidiary
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ledger

Accounts receivable from each customer are usually kept in the ___ ___ ___ - correct
Ans er-AR Subsidiary ledger
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T/F - In posting from journals to ledgers for accounts ith subsidiary ledgers, it is
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necessary to post the same amounts to both the general ledger and related subsidiary
ledgers. - correct Ans er-True
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A ___ ___ is typically prepared henever a company plans to prepare financial
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statements. - correct Ans er-Trial balance
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T/F - The unadjusted trial balance should not be prepared until all transactions, except
adjusting entries, have been recorded in the journals and posted to the general and
subsidiary ledgers. - correct Ans er-True w




T/F - The primary reason for preparing adjusting entries is to convert from the cash
basis of accounting to the accrual basis. - correct Ans er-True
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T/F - Adjusting entries are prepared only at the end of the period hen a company plans
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to prepare financial statements. - correct Ans er-Truew




T/F - Every adjusting entry affects both the balance sheet and the income statement. -
correct Ans er-True
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Prepaid expense, Accrued expense, Accrued revenue, Unearned revenue, Estimated
items (Depreciation), and Inventory adjustments are examples of ___ ___ - correct
Ans er-Adjusting entries
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