SUA EXAM REVIEW GUIDE
QUESTIONS AND ANSWERS
Which of the following documents and records is not required to prepare a bank
reconciliation - ANSWER-Sales journal
Which journal will the closing entries be recorded? - ANSWER-General journal
A valid sales return is supported by evidence showing that (1) the return was
approved, (2) the returned goods were received, (3) the amount due from the
customer is reduced and applied to the customer account. Which of the following is
not a required document to support a valid sales return transaction? - ANSWER-
Sales invoice
What document does a customer receive when goods are returned? - ANSWER-
Credit memo
The company issued a check to pay for a prior purchase (accounts payable). This
transaction will be recorded in which journal? - ANSWER-Cash disbursements
journal
Which of the following transactions will be recorded in the sales journal? - ANSWER-
Record sales returns and credit memo
A document prepared at the time of shipment indicating the description of the
merchandise, the quantity shipped and other relevant data. It is a written contract of
the receipt and shipment of goods between the seller and the carrier. This document
is a: - ANSWER-Bill of lading
The purpose of a bank reconciliation is to: - ANSWER-To identify the difference
between the bank balance per bank statement and our balance per books
The journal entry to record federal income tax expenses of the company will be
recorded in which journal? - ANSWER-General journal
An auditor wants to verify that for a given inventory acquisition, (1) the merchandise
was ordered by the company, (2) the merchandise was delivered to the company, (3)
a bill for the merchandise was received. The auditor should look at which
documents? - ANSWER-Purchase order, receiving report, vendor invoice
The auditor wants to verify that for a given credit sale, (1) the merchandise was
ordered by a valid customer, (2) the merchandise was shipped to the customer, (3) a
bill for the merchandise was sent to the customer. The auditor should look at which
documents? - ANSWER-Sales order, bill of lading, sales invoice
When recording a credit sale transaction, where can the accountant find out the
subsidiary account number of the customer? - ANSWER-Accounts receivable
subsidiary ledger
QUESTIONS AND ANSWERS
Which of the following documents and records is not required to prepare a bank
reconciliation - ANSWER-Sales journal
Which journal will the closing entries be recorded? - ANSWER-General journal
A valid sales return is supported by evidence showing that (1) the return was
approved, (2) the returned goods were received, (3) the amount due from the
customer is reduced and applied to the customer account. Which of the following is
not a required document to support a valid sales return transaction? - ANSWER-
Sales invoice
What document does a customer receive when goods are returned? - ANSWER-
Credit memo
The company issued a check to pay for a prior purchase (accounts payable). This
transaction will be recorded in which journal? - ANSWER-Cash disbursements
journal
Which of the following transactions will be recorded in the sales journal? - ANSWER-
Record sales returns and credit memo
A document prepared at the time of shipment indicating the description of the
merchandise, the quantity shipped and other relevant data. It is a written contract of
the receipt and shipment of goods between the seller and the carrier. This document
is a: - ANSWER-Bill of lading
The purpose of a bank reconciliation is to: - ANSWER-To identify the difference
between the bank balance per bank statement and our balance per books
The journal entry to record federal income tax expenses of the company will be
recorded in which journal? - ANSWER-General journal
An auditor wants to verify that for a given inventory acquisition, (1) the merchandise
was ordered by the company, (2) the merchandise was delivered to the company, (3)
a bill for the merchandise was received. The auditor should look at which
documents? - ANSWER-Purchase order, receiving report, vendor invoice
The auditor wants to verify that for a given credit sale, (1) the merchandise was
ordered by a valid customer, (2) the merchandise was shipped to the customer, (3) a
bill for the merchandise was sent to the customer. The auditor should look at which
documents? - ANSWER-Sales order, bill of lading, sales invoice
When recording a credit sale transaction, where can the accountant find out the
subsidiary account number of the customer? - ANSWER-Accounts receivable
subsidiary ledger
