Exam 27: Additional Accounting Procedures

The steps in preparing a distribution of net income statement are different depending on how earnings are shared.

The transportation company sends the signed bill of lading to the buyer, so the seller does not know when the merchandise has been shipped.

Select the one term that best fits each definition. -A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount, provided stated conditions are met.

Sales taxes are normally paid only on sales to the final consumer.

Select the one term that best fits each definition. -A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise.

The Assets and Liabilities sections of a balance sheet for a partnership are prepared in the same way as the Assets and Liabilities sections of a balance sheet for a proprietorship.

Select the one term that best fits each definition. -Cash received from the sale of assets during liquidation of a partnership.

The documents that must be presented to a seller's bank in order for the seller to collect payment for an international cash sale are

The entry to journalize an international cash sale includes a

Select the one term that best fits each definition. -Goods or services shipped out of a seller's home country to another country.

A seller generally has much more assurance of receiving payment from a buyer than from a bank.

The journal entry to record an international cash sale would be recorded in a

The journal entry to record the receipt of a time draft for an international sale would be recorded in a

Select the one term that best fits each definition. -The process of paying a partnership's liabilities and distributing remaining assets to the partners.

A draft that is payable at a fixed or determinable future time after it is accepted is called a

The journal entry to record the receipt of cash for the value of a time draft would be recorded in a

The journal entry to record an Internet credit card sale includes a

Select the one term that best fits each definition. -Goods or services shipped into the buyer's home country from another country.

The journal entry to record an Internet credit sale would be recorded in a

Withdrawals could be recorded as debits to the partners' capital accounts, but are normally recorded in separate accounts so that the total amounts are easily determined.