Question 1

A Schedule of Accounts Payable is an alphabetical list of all customers.

Accepted Answer

A) True 
 B)False

Question 2

Compare and contrast the controlling account Accounts Payable to the accounts payable ledger. Discuss why the balance of the controlling account, Accounts Payable, does not equal the sum of the accounts payable ledger during the month.

Accepted Answer

Both the control account, Accounts Payab

Question 3

The seller's sales invoice is the buyer's purchase invoice.

Accepted Answer

A) True 
 B)False

Question 4

Which is the correct order of buying merchandise from a company?

Accepted Answer

A)  Approval for payment, order, requisition, invoice, receiving report 
B)  Approval for payment, requisition, order, invoice, receiving report 
C)  Requisition, order, invoice, approval for payment, receiving report 
D)  Requisition, order, invoice, receiving report, approval for payment 
A)  Approval for payment, order, requisition, invoice, receiving report 
B)  Approval for payment, requisition, order, invoice, receiving report 
C)  Requisition, order, invoice, approval for payment, receiving report 
D)  Requisition, order, invoice, receiving report, approval for payment

Question 5

Determine the amount to be paid within the discount period for purchase with an invoice price of $3,000 and credit terms of 2/10, n/30 when $500 has already been returned for credit.

Accepted Answer

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

Question 6

F.O.B. shipping point means

Accepted Answer

A)  the buyer pays for the freight. 
B)  the seller pays for the freight. 
C)  the title passes at time of shipment. 
D)  both A and C are correct. 
A)  the buyer pays for the freight. 
B)  the seller pays for the freight. 
C)  the title passes at time of shipment. 
D)  both A and C are correct.

Question 7

The Schedule of Accounts Payable is listed alphabetically.

Accepted Answer

A) True 
 B)False

Question 8

Credit terms of 3/10, Net 30 permit a purchaser to deduct 3% of the invoice total if payment is made within 10 days.

Accepted Answer

A) True 
 B)False

Question 9

The account Inventory includes the shipping costs to the seller.

Accepted Answer

A) True 
 B)False

Question 10

The entry to record a payment sent on a $900 account within the 1% discount period would include a

Accepted Answer

A)  debit to Accounts Payable for $900. 
B)  debit to Accounts Payable for $891. 
C)  credit to Inventory for $909. 
D)  debit to Cash for $891. 
A)  debit to Accounts Payable for $900. 
B)  debit to Accounts Payable for $891. 
C)  credit to Inventory for $909. 
D)  debit to Cash for $891.

Question 11

When the terms are F.O.B. shipping point, the purchaser is responsible for the cost of shipping from the seller's shipping point to the purchaser's location.

Accepted Answer

A) True 
 B)False

Question 12

Terms of 2/10, n/30 means that a customer is allowed a 10% discount in 30 days.

Accepted Answer

A) True 
 B)False

Question 13

Explain the difference between F.O.B. shipping point and F.O.B. destination.

Accepted Answer

F.O.B. destination means the seller pays

Question 14

Medeco bought goods for $150 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed after the discount period, what is the amount they should pay?

Accepted Answer

A)  $100 
B)  $147 
C)  $98 
D)  $150 
A)  $100 
B)  $147 
C)  $98 
D)  $150

Question 15

When the term F.O.B. shipping point is used, title passes

Accepted Answer

A)  when goods reach the halfway point. 
B)  when goods reach the destination. 
C)  when goods are shipped. 
D)  when the buyer unpacks the goods. 
A)  when goods reach the halfway point. 
B)  when goods reach the destination. 
C)  when goods are shipped. 
D)  when the buyer unpacks the goods.

Question 16

Determine the amount of credit to be earned on a full return of merchandise purchased with an invoice price of $4,000 and credit terms of 2/10, n/30 when full payment was made within the discount period.

Accepted Answer

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

Question 17

The entry to record a purchase of $2,000 on account, terms of 2/10, n/30, would include a

Accepted Answer

A)  debit to Inventory for $40. 
B)  credit to Accounts Payable for $2,000. 
C)  debit to Accounts Payable for $2,000. 
D)  credit to Cash for $2,000. 
A)  debit to Inventory for $40. 
B)  credit to Accounts Payable for $2,000. 
C)  debit to Accounts Payable for $2,000. 
D)  credit to Cash for $2,000.

Question 18

Every transaction in a purchases journal includes

Accepted Answer

A)  a credit to Cash. 
B)  a credit to Inventory. 
C)  a credit to Accounts Payable. 
D)  a debit to Office Supplies. 
A)  a credit to Cash. 
B)  a credit to Inventory. 
C)  a credit to Accounts Payable. 
D)  a debit to Office Supplies.

Question 19

The main reason most businesses do not use only a General Journal is

Accepted Answer

A)  a General Journal is much too inefficient. 
B)  a General Journal is prone to many errors. 
C)  two or more clerks cannot use the General Journal at the same time. 
D)  both A and C are correct. 
A)  a General Journal is much too inefficient. 
B)  a General Journal is prone to many errors. 
C)  two or more clerks cannot use the General Journal at the same time. 
D)  both A and C are correct.

Question 20

Office Supplies (not used for resale) bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Cost of Goods Sold. This error will cause

Accepted Answer

A)  net income to be overstated. 
B)  net income to be understated. 
C)  net income to not be affected. 
D)  total assets to be understated. 
A)  net income to be overstated. 
B)  net income to be understated. 
C)  net income to not be affected. 
D)  total assets to be understated.

A Schedule of Accounts Payable is an alphabetical list of all customers.

Compare and contrast the controlling account Accounts Payable to the accounts payable ledger. Discuss why the balance of the controlling account, Accounts Payable, does not equal the sum of the accounts payable ledger during the month.

The seller's sales invoice is the buyer's purchase invoice.

Which is the correct order of buying merchandise from a company?

Determine the amount to be paid within the discount period for purchase with an invoice price of $3,000 and credit terms of 2/10, n/30 when $500 has already been returned for credit.

F.O.B. shipping point means

The Schedule of Accounts Payable is listed alphabetically.

Credit terms of 3/10, Net 30 permit a purchaser to deduct 3% of the invoice total if payment is made within 10 days.

The account Inventory includes the shipping costs to the seller.

The entry to record a payment sent on a $900 account within the 1% discount period would include a

When the terms are F.O.B. shipping point, the purchaser is responsible for the cost of shipping from the seller's shipping point to the purchaser's location.

Terms of 2/10, n/30 means that a customer is allowed a 10% discount in 30 days.

Explain the difference between F.O.B. shipping point and F.O.B. destination.

Medeco bought goods for $150 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed after the discount period, what is the amount they should pay?

When the term F.O.B. shipping point is used, title passes

Determine the amount of credit to be earned on a full return of merchandise purchased with an invoice price of $4,000 and credit terms of 2/10, n/30 when full payment was made within the discount period.

The entry to record a purchase of $2,000 on account, terms of 2/10, n/30, would include a

Every transaction in a purchases journal includes

The main reason most businesses do not use only a General Journal is

Office Supplies (not used for resale) bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Cost of Goods Sold. This error will cause

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 Schedule of Accounts Payable is an alphabetical list of all customers.

Compare and contrast the controlling account Accounts Payable to the accounts payable ledger. Discuss why the balance of the controlling account, Accounts Payable, does not equal the sum of the accounts payable ledger during the month.

The seller's sales invoice is the buyer's purchase invoice.

Which is the correct order of buying merchandise from a company?

Determine the amount to be paid within the discount period for purchase with an invoice price of $3,000 and credit terms of 2/10, n/30 when $500 has already been returned for credit.

F.O.B. shipping point means

The Schedule of Accounts Payable is listed alphabetically.

Credit terms of 3/10, Net 30 permit a purchaser to deduct 3% of the invoice total if payment is made within 10 days.

The account Inventory includes the shipping costs to the seller.

The entry to record a payment sent on a $900 account within the 1% discount period would include a

When the terms are F.O.B. shipping point, the purchaser is responsible for the cost of shipping from the seller's shipping point to the purchaser's location.

Terms of 2/10, n/30 means that a customer is allowed a 10% discount in 30 days.

Explain the difference between F.O.B. shipping point and F.O.B. destination.

Medeco bought goods for $150 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed after the discount period, what is the amount they should pay?

When the term F.O.B. shipping point is used, title passes

Determine the amount of credit to be earned on a full return of merchandise purchased with an invoice price of $4,000 and credit terms of 2/10, n/30 when full payment was made within the discount period.

The entry to record a purchase of $2,000 on account, terms of 2/10, n/30, would include a

Every transaction in a purchases journal includes

The main reason most businesses do not use only a General Journal is

Office Supplies (not used for resale) bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Cost of Goods Sold. This error will cause

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