Question 1

Match the terms with the definitions.
-A report indicating what has been received.

Accepted Answer

A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount 
A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount

Question 2

The following information was taken from the accounting records of Northern Lights for the month of October, 20--: $\begin{array}{lr}
\text { Sales } & \$ 344,000 \
\text { Sales Returns and Allowances } & 3,410 \
\text { Sales Discounts } & 370 \
\text { Purchases } & 194,500 \
\text { Purchases Returns and Allowances } & 9,740 \
\text { Purchases Discounts } & 5,560 \
\text { Freight-In } & 1,580 \
\text { Merchandise Inventory, October 1 } & 42,000 \
\text { Merchandise Inventory, October 31 } & 33,000
\end{array}$ Complete a partial income statement for the month of October, showing gross profit.

Accepted Answer

The answer of The following information was taken from the...

Question 3

When the merchandise is received, a receiving report indicating what has been received is prepared.

Accepted Answer

A) True 
 B)False

Question 4

A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a purchase invoice.

Accepted Answer

A) True 
 B)False

Question 5

Match the terms with the definitions.
-A document prepared by the seller as a bill for the merchandise shipped.

Accepted Answer

A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount 
A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount

Question 6

Match the terms with the definitions.
-The difference between the goods available for sale and the ending inventory.

Accepted Answer

A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount 
A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount

Question 7

After the posting of the accounts payable ledger and the general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.

Accepted Answer

A) True 
 B)False

Question 8

Record the following transactions for Red Wood Trails in a general journal.
June 3
Purchased $3,985 of merchandise on account from JVC Co.
9
Purchased $2,300 of merchandise on account from Prime Target and Co. Credit terms 2/10, n/30.
12
Purchased $675 of store supplies on account from Craft Shop.
13
Paid for June 3 purchase of merchandise from JVC Co.
19
Paid for June 9 purchase of merchandise from Prime Target and Co.

Accepted Answer

The answer of Record the following transactions for Red Wood...

Question 9

A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a

Accepted Answer

A)  purchase invoice. 
B)  purchase order. 
C)  purchase requisition. 
D)  receiving report. 
A)  purchase invoice. 
B)  purchase order. 
C)  purchase requisition. 
D)  receiving report.

Question 10

Match the terms with the definitions.
-A written order to buy goods from a specific vendor (supplier).

Accepted Answer

A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount 
A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount

Question 11

Tim Simpleton owns a variety store called Tiny Tim Center. Journalize the following purchases of inventory, returns, and discounts for the month of November. Use the gross-price method.

Accepted Answer

The answer of Tim Simpleton owns a variety store called...

Question 12

Match the terms with the definitions.
-A form used to request the purchase of merchandise or other property.

Accepted Answer

A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount 
A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount

Question 13

FOB destination means free on board at the destination of the shipment.

Accepted Answer

A) True 
 B)False

Question 14

An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms of 3/10, n/30. The amount of the trade discount would be

Accepted Answer

A)  $24.73. 
B)  $27.48. 
C)  $91.60. 
D)  $824.40. 
A)  $24.73. 
B)  $27.48. 
C)  $91.60. 
D)  $824.40.

Question 15

Postings to the accounts payable ledger should be made at the end of the month only.

Accepted Answer

A) True 
 B)False

Question 16

Match the terms with the definitions.
-Merchandise acquired for resale to customers.

Accepted Answer

A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount 
A) accounts payable ledger 
B) cost of goods sold 
C) FOB destination 
D) FOB shipping point 
E) gross profit
F)purchase invoice
G)purchase order
H)purchase requisition
I)purchases
J)receiving report
K)schedule of accounts payable
L)trade discount

Question 17

Special discounts on list prices granted to different classes of customers are known as trade discounts.

Accepted Answer

A) True 
 B)False

Question 18

The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes

Accepted Answer

A)  debiting Purchases and crediting Cash. 
B)  debiting Purchases and crediting Accounts Payable. 
C)  debiting Merchandise Inventory and crediting Cash. 
D)  debiting Merchandise Inventory and crediting Accounts Payable. 
A)  debiting Purchases and crediting Cash. 
B)  debiting Purchases and crediting Accounts Payable. 
C)  debiting Merchandise Inventory and crediting Cash. 
D)  debiting Merchandise Inventory and crediting Accounts Payable.

Question 19

Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold.

Accepted Answer

A) True 
 B)False

Exam 11: Accounting for Purchases and Cash Payments

Match the terms with the definitions. -A report indicating what has been received.

When the merchandise is received, a receiving report indicating what has been received is prepared.

A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a purchase invoice.

Match the terms with the definitions. -A document prepared by the seller as a bill for the merchandise shipped.

Match the terms with the definitions. -The difference between the goods available for sale and the ending inventory.

After the posting of the accounts payable ledger and the general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.

A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a

Match the terms with the definitions. -A written order to buy goods from a specific vendor (supplier).

Tim Simpleton owns a variety store called Tiny Tim Center. Journalize the following purchases of inventory, returns, and discounts for the month of November. Use the gross-price method.

Match the terms with the definitions. -A form used to request the purchase of merchandise or other property.

FOB destination means free on board at the destination of the shipment.

An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms of 3/10, n/30. The amount of the trade discount would be

Postings to the accounts payable ledger should be made at the end of the month only.

Match the terms with the definitions. -Merchandise acquired for resale to customers.

Special discounts on list prices granted to different classes of customers are known as trade discounts.

The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes

Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

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