Question 1

A list showing the ending balances owed to individual creditors is called a Schedule of Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 2

The Schedule of Accounts Payable is listed alphabetically.

Accepted Answer

A) True 
 B)False

Question 3

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account in which the account balance is reported.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Freight-In } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 4

On November 30,Janoch's Dog Kennel purchased $600 of merchandise on account from the Ganster Company.The goods were shipped F.O.B.shipping point.The freight charge of $40 was paid by Ganster Company and added to the invoice.The amount to record in the Purchases account is:

Accepted Answer

A) $600. 
B) $640. 
C) $560. 
D) $550. 
A) $600. 
B) $640. 
C) $560. 
D) $550.

Question 5

Journalize the following transactions.All purchases are on account and subject to terms of 2/10,n/30.The periodic inventory method is used.
 Nov. 3 Purchased merchandise with a price of $\$ 2,000$ from the Bartkowski Inc.
Nov. 5 Purchased merchandise from the Thiesman and Co. with a price of $\$ 4,000$.
Nov. 7 Purchased merchandise with a price of $\$ 2,000$ from the Montana Supply Co.
Nov. 10 Paid the amount due to Bartkouski Inc.
Nov. 12 Paid the amount due to Thiesman and Co.
Nov. 23 Paid the amount due to Montana Supply Co.
-Journalize the Nov.5 transaction.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Journalize the following transactions.All purchases are on...

Question 6

The freight paid on goods purchased F.O.B.Shipping Point was not recorded.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 liabilities to be overstated. 
A) net income to be overstated. 
B) net income to be understated. 
C) net income to not be affected. 
D) total liabilities to be overstated.

Question 7

A debit memorandum increases which account on the buyer's books?

Accepted Answer

A) Accounts Payable 
B) Purchases Returns and Allowances 
C) Sales Discount 
D) Accounts Receivable 
A) Accounts Payable 
B) Purchases Returns and Allowances 
C) Sales Discount 
D) Accounts Receivable

Question 8

J&L Lumber reports Purchases of $66,000.If Purchases Returns and Allowances are $6,000 and Purchases Discounts are $1,500,what are the net Purchases?

Accepted Answer

A) $54,000 
B) $52,500 
C) $67,500 
D) $58,500 
A) $54,000 
B) $52,500 
C) $67,500 
D) $58,500

Question 9

Prepare the general journal entry for the May 5 transaction.__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Prepare the general journal entry for the...

Question 10

Determine the amount to be paid within the discount period for purchase with an invoice price of $10,000 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 11

Purchases Returns and Allowances:

Accepted Answer

A) decrease net income. 
B) increase net income. 
C) increase accounts payable. 
D) Not enough information provided. 
A) decrease net income. 
B) increase net income. 
C) increase accounts payable. 
D) Not enough information provided.

Question 12

Before paying an invoice,the accounting department must check:

Accepted Answer

A) the purchase order. 
B) the invoice. 
C) the receiving report. 
D) All of the above are correct. 
A) the purchase order. 
B) the invoice. 
C) the receiving report. 
D) All of the above are correct.

Question 13

Prepare the general journal entry for the May 14 transaction.__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Prepare the general journal entry for the...

Question 14

A characteristic of Purchases Returns and Allowances is:

Accepted Answer

A) it has a normal credit balance. 
B) it increases when merchandise is returned. 
C) it decreases cost. 
D) All of the above are correct. 
A) it has a normal credit balance. 
B) it increases when merchandise is returned. 
C) it decreases cost. 
D) All of the above are correct.

Question 15

The Purchases Discount account normally has a debit balance and is a contra-cost account.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A form used in business to place an order for the buying of goods from a seller is:

Accepted Answer

A) purchase requisition. 
B) purchase order. 
C) purchase demand. 
D) purchases returns. 
A) purchase requisition. 
B) purchase order. 
C) purchase demand. 
D) purchases returns.

Question 18

Which account is the controlling account for the amounts owed to individual creditors?

Accepted Answer

A) Accounts Payable in the general ledger 
B) Accounts Receivable in the general ledger 
C) Accounts Receivable in the subsidiary ledger 
D) Accounts Payable in the subsidiary ledger 
A) Accounts Payable in the general ledger 
B) Accounts Receivable in the general ledger 
C) Accounts Receivable in the subsidiary ledger 
D) Accounts Payable in the subsidiary ledger

Question 19

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account in which the account balance is reported.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \begin{array} { l } 
\text { Merchandise } \
\text { Inventory }
\end{array} & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 20

Returned merchandise for credit on account.The perpetual inventory system is in use.This will be recorded with:

Accepted Answer

A) a debit to a liability and a credit to an expense. 
B) a debit to an asset and a credit to an expense. 
C) a debit to a liability and a credit to an asset. 
D) a debit to an asset and a credit to a liability. 
A) a debit to a liability and a credit to an expense. 
B) a debit to an asset and a credit to an expense. 
C) a debit to a liability and a credit to an asset. 
D) a debit to an asset and a credit to a liability.

Exam 10: Purchases and Cash Payments

A list showing the ending balances owed to individual creditors is called a Schedule of Accounts Payable.

The Schedule of Accounts Payable is listed alphabetically.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account in which the account balance is reported. - Column 1 Column 2 Column 3 Freight-In

On November 30,Janoch's Dog Kennel purchased $600 of merchandise on account from the Ganster Company.The goods were shipped F.O.B.shipping point.The freight charge of $40 was paid by Ganster Company and added to the invoice.The amount to record in the Purchases account is:

The freight paid on goods purchased F.O.B.Shipping Point was not recorded.This error will cause:

A debit memorandum increases which account on the buyer's books?

J&L Lumber reports Purchases of $66,000.If Purchases Returns and Allowances are $6,000 and Purchases Discounts are $1,500,what are the net Purchases?

Prepare the general journal entry for the May 5 transaction.__________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

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

Purchases Returns and Allowances:

Before paying an invoice,the accounting department must check:

Prepare the general journal entry for the May 14 transaction.__________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

A characteristic of Purchases Returns and Allowances is:

The Purchases Discount account normally has a debit balance and is a contra-cost account.

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

A form used in business to place an order for the buying of goods from a seller is:

Which account is the controlling account for the amounts owed to individual creditors?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account in which the account balance is reported. - Column 1 Column 2 Column 3 Merchandise Inventory

Returned merchandise for credit on account.The perpetual inventory system is in use.This will be recorded with:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Prepare the general journal entry for the May 5 transaction.__________

Prepare the general journal entry for the May 14 transaction.__________