Question 1

A list of creditors and the balances owed to them is called a schedule of ___________________.

Accepted Answer

The answer of A list of creditors and the balances...

Question 2

The purchases journal for Wright Company is shown below.Describe how the amounts would be posted to the general ledger accounts.

Accepted Answer

Dr.Purchases $5,700;

Question 3

Topix Music Store uses the perpetual inventory system and had the following transactions during the month of June.Record the transactions in the general journal.(Omit explanations)
June 4 Purchased $10,000 of goods on account from Music Supply Store,terms 2/10,n/30.
June 8 Received a freight bill directly from the transportation company for $50 indicating payment due in 30 days.
June 15 Sold goods originally costing $400,to M.Brown for $1,000 on credit.
June 25 Received a $150 credit memorandum from Music Supply Store as an allowance due to damaged goods.

Accepted Answer

The answer of Topix Music Store uses the perpetual inventory...

Question 4

The purchases journal for Carothers Company is shown below.Describe how the amounts would be posted to the general ledger accounts.

Accepted Answer

Dr.Purchases $4,095;

Question 5

On June 30,2016,the general ledger of the Shoe Closet,a retail store,showed the following balances: Purchases $19,000;Freight In,$500;Purchases Returns and Allowances,$900.
Determine the following:
A)What was the delivered cost of purchases for June?
B)What was the net delivered cost of purchases for June?

Accepted Answer

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

Question 6

Whenever a sales department needs goods,it sends the purchasing department a form called a(n)___________________.

Accepted Answer

purchase r

Question 7

During March a firm purchased $22,650 of merchandise and paid freight charges of $1,720.If the net delivered cost of purchases for the March is $21,900,what is the total purchase returns for March?

Accepted Answer

A)  $0 
B)  $2,470 
C)  $970 
D)  $3,440 
A)  $0 
B)  $2,470 
C)  $970 
D)  $3,440

Question 8

If a perpetual inventory system is used instead of a periodic system,identify the accounts that the Merchandise Inventory account replaces.

Accepted Answer

A)  Purchases,Sales,Freight In 
B)  Purchases,Purchase Returns and Allowances,Freight In 
C)  Purchases,Cost of Goods Sold 
D)  Purchases,Accounts Receivable,Freight In 
A)  Purchases,Sales,Freight In 
B)  Purchases,Purchase Returns and Allowances,Freight In 
C)  Purchases,Cost of Goods Sold 
D)  Purchases,Accounts Receivable,Freight In

Question 9

At the end of the accounting period the total of the accounts in the accounts payable subsidiary ledgers need not agree to the total in the firm's accounts payable ledger account.

Accepted Answer

A) True 
 B)False

Question 10

In a firm that uses special journals,the purchase of merchandise with terms of 2/10,n/30 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 11

The Fast Frame Shop had the following transactions for the month of January 201.Record the transactions on page 7 of a purchases journal and page 9 of a general journal.Total,prove,and rule the purchases journal as of January 31.

Accepted Answer

The answer of The Fast Frame Shop had the following...

Question 12

For good internal control of purchases,businesses should do all of the following

Accepted Answer

A)  Computations on the invoice should be checked for accuracy. 
B)  Another person should write the check for payment of the invoice. 
C)  Goods should be carefully checked when received. 
D)  Ensure that the same person is involved in the process of buying,receiving and paying for the goods. 
A)  Computations on the invoice should be checked for accuracy. 
B)  Another person should write the check for payment of the invoice. 
C)  Goods should be carefully checked when received. 
D)  Ensure that the same person is involved in the process of buying,receiving and paying for the goods.

Question 13

Good internal control requires a _____________________ of duties.

Accepted Answer

The answer of Good internal control requires a _____________________ of...

Question 14

The Picture Perfect Camera Shop had the following transactions for the month of August 2016.Record the transactions on page 7 of a purchases journal and page 9 of a general journal.Total,prove,and rule the purchases journal as of August 31.

Accepted Answer

The answer of The Picture Perfect Camera Shop had the...

Question 15

The source document for recording a purchase of merchandise on credit is

Accepted Answer

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

Question 16

If an amount recorded in the general journal requires two postings,a diagonal line is used to separate the two posting references in the posting reference column.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is correct?

Accepted Answer

A)  The purchase requisition is the form sent to a supplier to order goods. 
B)  The Purchases account is reported as an asset on the balance sheet. 
C)  To the customer,a supplier's invoice is a purchase order invoice. 
D)  The credit terms,2/10,n/30,allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice,otherwise payment is due in full in 30 days. 
A)  The purchase requisition is the form sent to a supplier to order goods. 
B)  The Purchases account is reported as an asset on the balance sheet. 
C)  To the customer,a supplier's invoice is a purchase order invoice. 
D)  The credit terms,2/10,n/30,allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice,otherwise payment is due in full in 30 days.

Question 18

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)P, (B)G

Question 19

Credit terms of 1/10,n/30 mean that

Accepted Answer

A)  payment in full is due 10 days after date of the invoice. 
B)  a 1% discount may be taken for up to 30 days. 
C)  if the invoice is paid within 10 days of its date,a 1% discount may be taken;otherwise the total amount is due in 20 days. 
D)  if the invoice is paid within 10 days of its date,a 1% discount may be taken;otherwise the total amount is due in 30 days. 
A)  payment in full is due 10 days after date of the invoice. 
B)  a 1% discount may be taken for up to 30 days. 
C)  if the invoice is paid within 10 days of its date,a 1% discount may be taken;otherwise the total amount is due in 20 days. 
D)  if the invoice is paid within 10 days of its date,a 1% discount may be taken;otherwise the total amount is due in 30 days.

Question 20

The Purchases account is

Accepted Answer

A)  a permanent account. 
B)  a temporary account. 
C)  a subsidiary account. 
D)  a liability account. 
A)  a permanent account. 
B)  a temporary account. 
C)  a subsidiary account. 
D)  a liability account.

Exam 8: Accounting for Purchases and Accounts Payable

A list of creditors and the balances owed to them is called a schedule of ___________________.

The purchases journal for Wright Company is shown below.Describe how the amounts would be posted to the general ledger accounts.

The purchases journal for Carothers Company is shown below.Describe how the amounts would be posted to the general ledger accounts.

Whenever a sales department needs goods,it sends the purchasing department a form called a(n)___________________.

During March a firm purchased $22,650 of merchandise and paid freight charges of $1,720.If the net delivered cost of purchases for the March is $21,900,what is the total purchase returns for March?

If a perpetual inventory system is used instead of a periodic system,identify the accounts that the Merchandise Inventory account replaces.

At the end of the accounting period the total of the accounts in the accounts payable subsidiary ledgers need not agree to the total in the firm's accounts payable ledger account.

In a firm that uses special journals,the purchase of merchandise with terms of 2/10,n/30 is recorded in the

The Fast Frame Shop had the following transactions for the month of January 201.Record the transactions on page 7 of a purchases journal and page 9 of a general journal.Total,prove,and rule the purchases journal as of January 31.

For good internal control of purchases,businesses should do all of the following

Good internal control requires a _____________________ of duties.

The Picture Perfect Camera Shop had the following transactions for the month of August 2016.Record the transactions on page 7 of a purchases journal and page 9 of a general journal.Total,prove,and rule the purchases journal as of August 31.

The source document for recording a purchase of merchandise on credit is

If an amount recorded in the general journal requires two postings,a diagonal line is used to separate the two posting references in the posting reference column.

Which of the following statements is correct?

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.

Credit terms of 1/10,n/30 mean that

The Purchases account is

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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