Question 1

A trade discount would

Accepted Answer

A)  have no effect on the books. 
B)  decrease the amount of the purchase discount. 
C)  increase the amount of the purchase discount. 
D)  need approval from senior management. 
A)  have no effect on the books. 
B)  decrease the amount of the purchase discount. 
C)  increase the amount of the purchase discount. 
D)  need approval from senior management.

Question 2

Mary's Pie Company had a starting Inventory balance of $13,550 and the following transaction totals for the month. Use this information to answer the questions below.
Sales Returns and Allowances $300
Sales Discounts 200
Purchases 3,000
Sales 8,000
Cost of Goods Sold 5,500
Purchases Discount 300
Freight 600
Based on the above, ending Inventory is ________.

Accepted Answer

The answer of Mary's Pie Company had a starting Inventory...

Question 3

Amounts are posted to the Accounts Payable Subsidiary Ledger

Accepted Answer

A)  at the end of the month. 
B)  daily. 
C)  when financial statements are being prepared. 
D)  whenever the accountant has some spare time. 
A)  at the end of the month. 
B)  daily. 
C)  when financial statements are being prepared. 
D)  whenever the accountant has some spare time.

Question 4

If a debit memorandum is issued, the buyer will reduce their accounts receivable.

Accepted Answer

A) True 
 B)False

Question 5

A receiving report is used to notify the company of the quantity and condition of the goods received.

Accepted Answer

A) True 
 B)False

Question 6

The special journal used to record all transactions involving payment of cash is a

Accepted Answer

A)  Sales journal. 
B)  Cash Receipts journal. 
C)  Purchases journal. 
D)  Cash Payments journal. 
A)  Sales journal. 
B)  Cash Receipts journal. 
C)  Purchases journal. 
D)  Cash Payments journal.

Question 7

A cash disbursement journal and a cash payments journal are the same thing.

Accepted Answer

A) True 
 B)False

Question 8

Determine the amount to be paid within the discount period for purchase with an invoice price of $7,000, subject to credit terms of 2/10, n/30.

Accepted Answer

The answer of Determine the amount to be paid within...

Question 9

The time a purchaser is granted to pay an invoice is the discount period.

Accepted Answer

A) True 
 B)False

Question 10

Determine the amount to be paid to the vendor within the discount period for purchase with an invoice price of $2,500 and credit terms of 2/10, n/30 when $700 has already been returned for credit. The goods were purchased with freight terms of F.O.B shipping point and freight of $50 was included on the invoice.

Accepted Answer

The answer of Determine the amount to be paid to...

Question 11

Jackson purchased $400 of goods on Feb 8 and received credit terms of 2/10, n/30. How much did he pay if payment was made on Feb 21?

Accepted Answer

A)  $360 
B)  $408 
C)  $400 
D)  $392 
A)  $360 
B)  $408 
C)  $400 
D)  $392

Question 12

A form used with a business by the requesting department asking the purchasing department to buy specific goods is called a

Accepted Answer

A)  purchase order. 
B)  purchase requisition. 
C)  purchase invoice. 
D)  debit memorandum. 
A)  purchase order. 
B)  purchase requisition. 
C)  purchase invoice. 
D)  debit memorandum.

Question 13

Jackie's Online Service started with $7,000 in Inventory and had the following transaction totals for the month: 
Sales $20,000
Sales Returns and Allowances 2,000
Cost of Goods Sold 8,000
Purchases 14,000
Freight 1,000
Purchases Returns and Allow. 2,000
Purchases Discounts 1,400
Ending Inventory for the period is

Accepted Answer

A)  $10,600. 
B)  $9,600. 
C)  $12,600. 
D)  $14,000. 
A)  $10,600. 
B)  $9,600. 
C)  $12,600. 
D)  $14,000.

Question 14

Discounts which reduce the price for customers who buy items for resale or to produce other goods are

Accepted Answer

A)  purchase discounts. 
B)  sale discounts. 
C)  trade discounts. 
D)  cash discounts. 
A)  purchase discounts. 
B)  sale discounts. 
C)  trade discounts. 
D)  cash discounts.

Question 15

Barnie's Cafe started with $4,000 in Inventory and had the following transaction totals for the month: 
Sales $10,000
Sales Returns and Allowances 1,000
Cost of Goods Sold $4,000
Accounts Payable 5,500
Purchases 7,000
Purchases Returns and Allowances 1,000
Purchases Discounts 700
Net purchases for the period are

Accepted Answer

A)  $4,300. 
B)  $6,300. 
C)  $5,300. 
D)  $5,800. 
A)  $4,300. 
B)  $6,300. 
C)  $5,300. 
D)  $5,800.

Question 16

An invoice approval form is used by accounting to check the invoice before approving it for payment.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following does NOT receive a copy of the Purchase Order?

Accepted Answer

A)  Supplier 
B)  Customer 
C)  Accounting department 
D)  Department that initiated purchase requisition 
A)  Supplier 
B)  Customer 
C)  Accounting department 
D)  Department that initiated purchase requisition

Question 18

Credit terms of n/15, EOM means that

Accepted Answer

A)  if the bill is paid by the end of the month, a discount will be granted. 
B)  the bill is due 15 days before the end of the month. 
C)  if the bill is paid 10 days after the end of the month, a discount is allowed. 
D)  the bill is due 15 days after the end of the month and no discount is allowed. 
A)  if the bill is paid by the end of the month, a discount will be granted. 
B)  the bill is due 15 days before the end of the month. 
C)  if the bill is paid 10 days after the end of the month, a discount is allowed. 
D)  the bill is due 15 days after the end of the month and no discount is allowed.

Question 19

C. Fong returned $200 of merchandise within the discount period. The entry to record the return is

Accepted Answer

A)  debit to Inventory for $200, credit Accounts Payable for $200. 
B)  debit to Inventory for $200, credit Cost of Goods Sold for $200. 
C)  debit to Accounts Payable for $200, credit Inventory for $200. 
D)  debit to Accounts Payable for $200, credit Cash for $200. 
A)  debit to Inventory for $200, credit Accounts Payable for $200. 
B)  debit to Inventory for $200, credit Cost of Goods Sold for $200. 
C)  debit to Accounts Payable for $200, credit Inventory for $200. 
D)  debit to Accounts Payable for $200, credit Cash for $200.

Question 20

A purchase requisition form is completed by the accounts payable clerical staff.

Accepted Answer

A) True 
 B)False

A trade discount would

Amounts are posted to the Accounts Payable Subsidiary Ledger

If a debit memorandum is issued, the buyer will reduce their accounts receivable.

A receiving report is used to notify the company of the quantity and condition of the goods received.

The special journal used to record all transactions involving payment of cash is a

A cash disbursement journal and a cash payments journal are the same thing.

Determine the amount to be paid within the discount period for purchase with an invoice price of $7,000, subject to credit terms of 2/10, n/30.

The time a purchaser is granted to pay an invoice is the discount period.

Jackson purchased $400 of goods on Feb 8 and received credit terms of 2/10, n/30. How much did he pay if payment was made on Feb 21?

A form used with a business by the requesting department asking the purchasing department to buy specific goods is called a

Discounts which reduce the price for customers who buy items for resale or to produce other goods are

An invoice approval form is used by accounting to check the invoice before approving it for payment.

Which of the following does NOT receive a copy of the Purchase Order?

Credit terms of n/15, EOM means that

C. Fong returned $200 of merchandise within the discount period. The entry to record the return is

A purchase requisition form is completed by the accounts payable clerical staff.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 7: Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

A trade discount would

Amounts are posted to the Accounts Payable Subsidiary Ledger

If a debit memorandum is issued, the buyer will reduce their accounts receivable.

A receiving report is used to notify the company of the quantity and condition of the goods received.

The special journal used to record all transactions involving payment of cash is a

A cash disbursement journal and a cash payments journal are the same thing.

Determine the amount to be paid within the discount period for purchase with an invoice price of $7,000, subject to credit terms of 2/10, n/30.

The time a purchaser is granted to pay an invoice is the discount period.

Jackson purchased $400 of goods on Feb 8 and received credit terms of 2/10, n/30. How much did he pay if payment was made on Feb 21?

A form used with a business by the requesting department asking the purchasing department to buy specific goods is called a

Discounts which reduce the price for customers who buy items for resale or to produce other goods are

An invoice approval form is used by accounting to check the invoice before approving it for payment.

Which of the following does NOT receive a copy of the Purchase Order?

Credit terms of n/15, EOM means that

C. Fong returned $200 of merchandise within the discount period. The entry to record the return is

A purchase requisition form is completed by the accounts payable clerical staff.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters