Question 1

The form sent to the supplier to order goods is called a(n)___________________.

Accepted Answer

The answer of The form sent to the supplier to...

Question 2

Postings to the accounts payable ledger should be made

Accepted Answer

A)  daily. 
B)  weekly. 
C)  monthly. 
D)  at the end of the fiscal period. 
A)  daily. 
B)  weekly. 
C)  monthly. 
D)  at the end of the fiscal period.

Question 3

Match the accounting terms with the description by entering the proper letter in the space provided.

Accepted Answer

(1)H, (2)K

Question 4

Since they are liability accounts,creditor's accounts in the accounts payable ledger normally have ____________________ balances.

Accepted Answer

The answer of Since they are liability accounts,creditor's accounts in...

Question 5

To record a return of merchandise purchased on credit on the books of the buyer,the accountant would

Accepted Answer

A)  debit Purchases Returns and Allowances and credit Accounts Receivable. 
B)  debit Purchases Returns and Allowances and credit Purchases. 
C)  debit Accounts Payable and credit Purchases Returns and Allowances. 
D)  debit Purchases and credit Purchases Returns and Allowances. 
A)  debit Purchases Returns and Allowances and credit Accounts Receivable. 
B)  debit Purchases Returns and Allowances and credit Purchases. 
C)  debit Accounts Payable and credit Purchases Returns and Allowances. 
D)  debit Purchases and credit Purchases Returns and Allowances.

Question 6

Match the accounting terms with the description by entering the proper letter in the space provided.

Accepted Answer

(1)I, (2)D

Question 7

When an accounts payable ledger is used,the Accounts Payable account in the general ledger becomes a(n)____________________ account.

Accepted Answer

The answer of When an accounts payable ledger is used,the...

Question 8

One of the supplier accounts from the accounts payable ledger for Thompson Consulting Services is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Accepted Answer

Feb.2 - Purchased merchandise

Question 9

The entry to record the return of merchandise purchased on credit includes a debit to Accounts Payable and a credit to Purchases Returns and Allowances.

Accepted Answer

A) True 
 B)False

Question 10

The type of account and normal balance of Purchase Returns and Allowances is a(n)

Accepted Answer

A)  contra-revenue account,credit balance. 
B)  asset account,debit balance. 
C)  contra-cost of goods sold account,credit balance. 
D)  expense account,credit balance. 
A)  contra-revenue account,credit balance. 
B)  asset account,debit balance. 
C)  contra-cost of goods sold account,credit balance. 
D)  expense account,credit balance.

Question 11

A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise.

Accepted Answer

A) True 
 B)False

Question 12

Music,Inc.uses a periodic inventory system when recording its purchases and sales of inventory.If the business returns $1,000 of damaged goods to its supplier,select the correct entry to record the return:

Accepted Answer

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

Question 13

When an accounts payable subsidiary ledger is used,the entry to Accounts Payable requires two posting references in the general journal.

Accepted Answer

A) True 
 B)False

Question 14

If a business pays $1,100 on account to a creditor,the effect of the payment is a decrease to cash and a(n)

Accepted Answer

A)  decrease to Fees Income. 
B)  increase of capital. 
C)  increase to accounts receivable. 
D)  decrease to accounts payable. 
A)  decrease to Fees Income. 
B)  increase of capital. 
C)  increase to accounts receivable. 
D)  decrease to accounts payable.

Question 15

Credit purchases of supplies that are to be used in the business are entered in

Accepted Answer

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

Question 16

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

Accepted Answer

A)  debit Purchases $965;credit Accounts Payable $965 
B)  debit Accounts Payable $965,debit Freight in $65;credit Purchases $900 
C)  debit Purchases $900,debit Freight In $65;credit Accounts Payable $965 
D)  debit Accounts Receivable $965;credit Sales $965 
A)  debit Purchases $965;credit Accounts Payable $965 
B)  debit Accounts Payable $965,debit Freight in $65;credit Purchases $900 
C)  debit Purchases $900,debit Freight In $65;credit Accounts Payable $965 
D)  debit Accounts Receivable $965;credit Sales $965

Question 17

On April 30,2016,the general ledger of the Danielle's Dress Shop showed the following balances: Purchases $9,000;Freight In,$50;Purchases Returns and Allowances,$90.
Determine the following:
A)What was the delivered cost of purchases for April?
B)What was the net delivered cost of purchases for April?

Accepted Answer

The answer of On April 30,2016,the general ledger of the...

Question 18

Which of the following statements is not correct?

Accepted Answer

A)  Cash purchases of merchandise are not recorded in the purchases journal. 
B)  A credit purchase of equipment for use in the business would be recorded in the purchases journal. 
C)  The Purchases account has a normal debit balance. 
D)  The invoice date and credit terms must be carefully recorded in the purchases journal because they determine when payment is due. 
A)  Cash purchases of merchandise are not recorded in the purchases journal. 
B)  A credit purchase of equipment for use in the business would be recorded in the purchases journal. 
C)  The Purchases account has a normal debit balance. 
D)  The invoice date and credit terms must be carefully recorded in the purchases journal because they determine when payment is due.

Question 19

Purchases of merchandise on credit should be recorded in the ____________________ journal.

Accepted Answer

The answer of Purchases of merchandise on credit should be...

Question 20

Purchases returns and allowances are recorded in the ____________________ journal if a firm does not have a purchases returns and allowances journal.

Accepted Answer

The answer of Purchases returns and allowances are recorded in...

Exam 8: Accounting for Purchases and Accounts Payable

The form sent to the supplier to order goods is called a(n)___________________.

Postings to the accounts payable ledger should be made

Match the accounting terms with the description by entering the proper letter in the space provided.

Since they are liability accounts,creditor's accounts in the accounts payable ledger normally have ____________________ balances.

To record a return of merchandise purchased on credit on the books of the buyer,the accountant would

Match the accounting terms with the description by entering the proper letter in the space provided.

When an accounts payable ledger is used,the Accounts Payable account in the general ledger becomes a(n)____________________ account.

One of the supplier accounts from the accounts payable ledger for Thompson Consulting Services is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

The entry to record the return of merchandise purchased on credit includes a debit to Accounts Payable and a credit to Purchases Returns and Allowances.

The type of account and normal balance of Purchase Returns and Allowances is a(n)

A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise.

Music,Inc.uses a periodic inventory system when recording its purchases and sales of inventory.If the business returns $1,000 of damaged goods to its supplier,select the correct entry to record the return:

When an accounts payable subsidiary ledger is used,the entry to Accounts Payable requires two posting references in the general journal.

If a business pays $1,100 on account to a creditor,the effect of the payment is a decrease to cash and a(n)

Credit purchases of supplies that are to be used in the business are entered in

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

Which of the following statements is not correct?

Purchases of merchandise on credit should be recorded in the ____________________ journal.

Purchases returns and allowances are recorded in the ____________________ journal if a firm does not have a purchases returns and allowances journal.

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

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