Question 1

After a supplier of merchandise is selected,the purchasing department issues a form called

Accepted Answer

A)  a purchase invoice. 
B)  a purchase order. 
C)  a sale invoice. 
D)  a purchase requisition. 
A)  a purchase invoice. 
B)  a purchase order. 
C)  a sale invoice. 
D)  a purchase requisition. B

Question 2

Skiing International uses a perpetual inventory system when recording its purchases and sales of inventory.If the business purchases $8,000 of goods on account,select the correct entry to record the purchase:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D) 
  B

Question 3

When the sales department needs goods,it sends the purchasing department a form called

Accepted Answer

A)  a purchase invoice. 
B)  a purchase order. 
C)  a purchase requisition. 
D)  a sales invoice. 
A)  a purchase invoice. 
B)  a purchase order. 
C)  a purchase requisition. 
D)  a sales invoice. C

Question 4

A purchase of merchandise for cash should be recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 5

Freight charges on merchandise purchases should be debited to

Accepted Answer

A)  the Purchases account. 
B)  the Accounts Payable account. 
C)  the Freight In account. 
D)  the creditor's account in the subsidiary ledger. 
A)  the Purchases account. 
B)  the Accounts Payable account. 
C)  the Freight In account. 
D)  the creditor's account in the subsidiary ledger.

Question 6

At the end of February 2016 and before the purchases journal was posted,selected general ledger account balances for Volter Repair Services were as follows (each account had a normal balance):   The purchases journal had the following totals: Purchases,$28,000;Freight In,$1,000;Accounts Payable,$29,000.
Calculate the ending balance of each of the three accounts after the posting from the purchases journal.Indicate whether each balance is a debit or credit.

Accepted Answer

The answer of At the end of February 2016 and...

Question 7

No amounts are posted from the purchases journal to the accounts payable subsidiary ledger during the month.

Accepted Answer

A) True 
 B)False

Question 8

In a firm that uses special journals,the return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  general journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  general journal.

Question 9

The amount of the purchases for a period is presented in

Accepted Answer

A)  the balance sheet. 
B)  the income statement. 
C)  the statement of owner's equity. 
D)  the cost of purchases statement. 
A)  the balance sheet. 
B)  the income statement. 
C)  the statement of owner's equity. 
D)  the cost of purchases statement.

Question 10

Hugh Snow returned merchandise to Farley Co.The entry on Hugh Snow's books to record the return of merchandise to Farley Co.would include a:

Accepted Answer

A)  Debit Accounts Payable 
B)  Credit to Purchase Returns and Allowances 
C)  Debit to Account Receivable 
D)  Debit Sales Returns and Allowances 
A)  Debit Accounts Payable 
B)  Credit to Purchase Returns and Allowances 
C)  Debit to Account Receivable 
D)  Debit Sales Returns and Allowances

Question 11

The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid by their supplier and added to the invoice is:

Accepted Answer

A)  debit Purchases $2,750;credit Accounts Payable $2,750 
B)  debit Accounts Payable $2,875,debit Freight in $125;credit Purchases $2,750 
C)  debit Purchases $2,750,debit Freight In $125;credit Accounts Payable $2,875 
D)  debit Accounts Receivable $2,875;credit Sales $2,875 
A)  debit Purchases $2,750;credit Accounts Payable $2,750 
B)  debit Accounts Payable $2,875,debit Freight in $125;credit Purchases $2,750 
C)  debit Purchases $2,750,debit Freight In $125;credit Accounts Payable $2,875 
D)  debit Accounts Receivable $2,875;credit Sales $2,875

Question 12

A creditor's account in the accounts payable ledger has a $1,600 beginning balance.After a transaction for $700 is posted from the purchases journal,the balance of the creditor's account is

Accepted Answer

A)  $2,300 debit. 
B)  $900 credit. 
C)  $2,300 credit. 
D)  $900 debit. 
A)  $2,300 debit. 
B)  $900 credit. 
C)  $2,300 credit. 
D)  $900 debit.

Question 13

A firm had purchases of $16,200,freight charges of $300,and purchases returns and allowances of $1,100 during one month.Its net delivered cost of purchases was

Accepted Answer

A)  $14,800. 
B)  $17,600. 
C)  $16,200. 
D)  $15,400. 
A)  $14,800. 
B)  $17,600. 
C)  $16,200. 
D)  $15,400.

Question 14

For each of the transactions listed below,identify the journal that should be used to record the transaction.Use CR for cash receipts journal,CP for cash payments journal,S for sales journal,P for purchases journal,and G for general journal.

Accepted Answer

(A)CP, (B)

Question 15

Read the description of the following transactions that are recorded during the accounting period for Drummond Consulting Services.Determine the account to be debited and the account to be credited.
A)Purchased merchandise with terms of net 30 days.
B)Returned some damaged merchandise to a supplier and received a credit memorandum.
C)Issued a check to a supplier as a payment on account.
D)Received an allowance for some merchandise that was slightly damaged but can be sold at a reduced price.Received a credit memorandum.
E)Purchased merchandise with terms of 2/10,n/30.The supplier's invoice includes a freight charge.

Accepted Answer

A)Debit Purchases;credit Accounts Payabl

Question 16

In a firm that uses special journals,the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  general journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  general journal.

Question 17

Which of the following accounts has a normal debit balance?

Accepted Answer

A)  Purchases 
B)  Purchase Returns 
C)  Accounts Payable 
D)  Sales 
A)  Purchases 
B)  Purchase Returns 
C)  Accounts Payable 
D)  Sales

Question 18

Explain each of the following credit terms.
A)n/30
B)n/10 EOM
C)2/10,n/30
D)1/10,n/20
E)3/5,n/30

Accepted Answer

A)Net amount of the invoice is due 30 da

Question 19

Check marks next to the individual amounts in the purchases journal mean that the amounts

Accepted Answer

A)  have been posted to the general ledger. 
B)  have been posted to the accounts payable subsidiary ledger. 
C)  have been posted to the accounts receivable subsidiary ledger. 
D)  do not need to be posted to any account. 
A)  have been posted to the general ledger. 
B)  have been posted to the accounts payable subsidiary ledger. 
C)  have been posted to the accounts receivable subsidiary ledger. 
D)  do not need to be posted to any account.

Question 20

The supplier's invoice is the source document for a purchase on credit transaction.

Accepted Answer

A) True 
 B)False

Exam 8: Accounting for Purchases and Accounts Payable

After a supplier of merchandise is selected,the purchasing department issues a form called

Skiing International uses a perpetual inventory system when recording its purchases and sales of inventory.If the business purchases $8,000 of goods on account,select the correct entry to record the purchase:

When the sales department needs goods,it sends the purchasing department a form called

A purchase of merchandise for cash should be recorded in the purchases journal.

Freight charges on merchandise purchases should be debited to

No amounts are posted from the purchases journal to the accounts payable subsidiary ledger during the month.

In a firm that uses special journals,the return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the

The amount of the purchases for a period is presented in

Hugh Snow returned merchandise to Farley Co.The entry on Hugh Snow's books to record the return of merchandise to Farley Co.would include a:

The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid by their supplier and added to the invoice is:

A creditor's account in the accounts payable ledger has a $1,600 beginning balance.After a transaction for $700 is posted from the purchases journal,the balance of the creditor's account is

A firm had purchases of $16,200,freight charges of $300,and purchases returns and allowances of $1,100 during one month.Its net delivered cost of purchases was

For each of the transactions listed below,identify the journal that should be used to record the transaction.Use CR for cash receipts journal,CP for cash payments journal,S for sales journal,P for purchases journal,and G for general journal.

In a firm that uses special journals,the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the

Which of the following accounts has a normal debit balance?

Explain each of the following credit terms. A)n/30 B)n/10 EOM C)2/10,n/30 D)1/10,n/20 E)3/5,n/30

Check marks next to the individual amounts in the purchases journal mean that the amounts

The supplier's invoice is the source document for a purchase on credit transaction.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters