Question 1

The accounts payable subsidiary ledger:

Accepted Answer

A) lists accounts alphabetically. 
B) lists accounts for which the company owes money. 
C) has a controlling account in the general ledger. 
D) All of the above are correct. 
A) lists accounts alphabetically. 
B) lists accounts for which the company owes money. 
C) has a controlling account in the general ledger. 
D) All of the above are correct.

Question 2

Determine the amount to be paid to the vendor within the discount period for purchase with an invoice price of $3,000 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 3

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 4

If a display rack was purchased for the store,which of the following accounts would be increased?

Accepted Answer

A) Store Equipment 
B) Purchases 
C) Cash 
D) Capital 
A) Store Equipment 
B) Purchases 
C) Cash 
D) Capital

Question 5

On June 15,Paradise Park purchased merchandise for the race track..The invoice was for $4,500,terms 2/10,n/30.On June 20,Paradise Park returned $200 of merchandise for credit.On June 25,it paid the amount owed.Fill in the blanks below.
a)The debit to Purchases on June 15 is ________.
b)The credit to Accounts Payable on June 15 is ________.
c)The credit to Purchases Returns and Allowances on June 20 is ________.
d)The credit to Cash on June 25 is ________.
e)The credit to Purchases Discount on June 25 is ________.

Accepted Answer

a)$4,500

Question 6

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 Purchase Returns and Allowances.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.

Question 7

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

Accepted Answer

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

Question 8

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 9

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

Question 10

Indicate whether the following accounts are used in the periodic inventory method,perpetual inventory method,or both by placing an X on the respective line(s).

Accepted Answer

The answer of Indicate whether the following accounts are used...

Question 11

The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use.
June 16 Purchased merchandise having a price of $\$ 6,000$ from the Shelby Manufacturing Co. on account with credit terms $10 , \mathrm { n } / 30$. Transportation terms F.O.B destination.
June 16 Purchased merchandise having a price of $\$ 9,000$ from the Ajax Supply House on account with credit terms $2 / 10 , \mathrm { n } / 30$. Transportation terms F.O.B shipping point. The freight costs were $\$ 175$.
June 17 Received the goods from Shelby.
June 17 Received the goods from Ajax.
June 20 Returned for credit merchandise with an invoice price of $\$ 800$ to Ajax.
June 25 Paid Shelby the amount owed.
June 28 Paid Ajax the amount owed.
June 30 Returned for cash, merchandise with an invoice price of $\$ 400$ to Shelby.
-Prepare the necessary general journal entry for June 30.

Accepted Answer

The answer of The Bixby Co. had the following transactions...

Question 12

Schedule of Accounts Payable is a list of customer accounts that owe the company money.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Individual amounts are recorded during the month to the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 15

When the terms are F.O.B.shipping point,the buyer is responsible for the cost of shipping from the seller's shipping point to the purchaser's location but the title does not pass until it is delivered.

Accepted Answer

A) True 
 B)False

Question 16

The term used when the seller is responsible for the cost of freight is:

Accepted Answer

A) F)O.B.shipping point. 
B) F)O.B.destination. 
C) Freight-In. 
D) Purchases. 
A) F)O.B.shipping point. 
B) F)O.B.destination. 
C) Freight-In. 
D) Purchases.

Question 17

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 Bartkowski Inc.
Nov. 12 Paid the amount due to Thiesman and Co.
Nov. 23 Paid the amount due to Montana Supply Co.
-Journalize the Nov.7 transaction.

Accepted Answer

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

Question 18

The entry to record returned merchandise to Vans Company is:

Accepted Answer

A) debit Purchases Returns and Allowances; credit Accounts Payable in the general ledger. 
B) debit Accounts Payable; credit Purchases. 
C) debit Accounts Payable/Vans Company in the accounts payable subsidiary ledger and debit Accounts Payable in the general ledger; credit Purchases Returns and Allowances. 
D) debit Purchases; credit Accounts Payable. 
A) debit Purchases Returns and Allowances; credit Accounts Payable in the general ledger. 
B) debit Accounts Payable; credit Purchases. 
C) debit Accounts Payable/Vans Company in the accounts payable subsidiary ledger and debit Accounts Payable in the general ledger; credit Purchases Returns and Allowances. 
D) debit Purchases; credit Accounts Payable.

Question 19

When merchandise is bought for resale,which of the following accounts would be increased?

Accepted Answer

A) Store Equipment 
B) Purchases 
C) A/R 
D) Capital 
A) Store Equipment 
B) Purchases 
C) A/R 
D) Capital

Question 20

The Schedule of Accounts Payable is listed alphabetically.

Accepted Answer

A) True 
 B)False

Exam 10: Purchases and Cash Payments

The accounts payable subsidiary ledger:

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

If a display rack was purchased for the store,which of the following accounts would be increased?

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 Purchase Returns and Allowances.This error will cause:

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

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

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

Indicate whether the following accounts are used in the periodic inventory method,perpetual inventory method,or both by placing an X on the respective line(s).

Schedule of Accounts Payable is a list of customer accounts that owe the company money.

A characteristic of Purchases Returns and Allowances is:

Individual amounts are recorded during the month to the accounts payable ledger.

When the terms are F.O.B.shipping point,the buyer is responsible for the cost of shipping from the seller's shipping point to the purchaser's location but the title does not pass until it is delivered.

The term used when the seller is responsible for the cost of freight is:

The entry to record returned merchandise to Vans Company is:

When merchandise is bought for resale,which of the following accounts would be increased?

The Schedule of Accounts Payable is listed alphabetically.

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters