Question 1

Purchases of merchandise on credit should be recorded in:

Accepted Answer

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

Question 2

Good internal control requires a ________ of duties.

Accepted Answer

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

Question 3

A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1. After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal, the balance of the creditor's account on April 30 is:

Accepted Answer

A) $14,160 credit 
B) $9,200 debit 
C) $12,800 debit 
D) $6,960 credit 
A) $14,160 credit 
B) $9,200 debit 
C) $12,800 debit 
D) $6,960 credit

Question 4

Each individual entry in the purchases journal is posted to the general ledger at the end of each day.

Accepted Answer

A) True 
 B)False

Question 5

A cash discount offered to the customer for payment within a specified period, on the books of the buyer

Accepted Answer

A) Cost of goods sold 
B) Freight In account 
C) Purchase allowance 
D) Purchase invoice 
E) Purchase order
F)Purchase requisition
G)Purchase return
H)Purchases account
I)Purchases discount
J)Purchases journal
K)Receiving report
L)Sales discount
M)Sales invoice
N)Schedule of accounts payable 
A) Cost of goods sold 
B) Freight In account 
C) Purchase allowance 
D) Purchase invoice 
E) Purchase order
F)Purchase requisition
G)Purchase return
H)Purchases account
I)Purchases discount
J)Purchases journal
K)Receiving report
L)Sales discount
M)Sales invoice
N)Schedule of accounts payable

Question 6

In a small firm, the creditor accounts are placed in--------- order in the accounts payable ledger.

Accepted Answer

The answer of In a small firm, the creditor accounts...

Question 7

The abbreviation P1 in the Posting Reference column of an account indicates that the data was posted from page 1 of the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

purchase r

Question 9

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

Question 10

Bally Boutique uses a perpetual inventory system when recording its purchases and sales of inventory. The business sells $6,000 of goods to charge account customers and the goods originally cost Bally, $3,000. The entry to record the sale would include:

Accepted Answer

A) a debit to Merchandise Inventory for $3,000 and a credit to Cost of Goods Sold for $3,000 
B) a debit to Accounts Receivable for $3,000 and a credit to Sales for $3,000 
C) a debit to Cost of Goods Sold for $3,000 and a credit to Merchandise Inventory for $3,000 
D) a debit to Sales for $6,000 and a credit to Merchandise Inventory for $6,000 
A) a debit to Merchandise Inventory for $3,000 and a credit to Cost of Goods Sold for $3,000 
B) a debit to Accounts Receivable for $3,000 and a credit to Sales for $3,000 
C) a debit to Cost of Goods Sold for $3,000 and a credit to Merchandise Inventory for $3,000 
D) a debit to Sales for $6,000 and a credit to Merchandise Inventory for $6,000

Question 11

Match between columns
                        Premises:  A cash discount offered to the customer for payment within a specified period, on the books of the buyer
 A bill received for goods purchased
 A special journal used to record the purchase of goods on credit
 A price reduction on a purchase from the amount originally billed
 A cash discount offered by the supplier for payment within a specified period, on the books of the seller
 Return to the supplier of unsatisfactory goods
 A supplier's billing document

Accepted Answer

The Answer of Cost of goods sold and Freight In is...

Purchases of merchandise on credit should be recorded in:

Good internal control requires a ________ of duties.

A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1. After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal, the balance of the creditor's account on April 30 is:

Each individual entry in the purchases journal is posted to the general ledger at the end of each day.

A cash discount offered to the customer for payment within a specified period, on the books of the buyer

In a small firm, the creditor accounts are placed in--------- order in the accounts payable ledger.

The abbreviation P1 in the Posting Reference column of an account indicates that the data was posted from page 1 of the cash payments journal.

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

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:

Bally Boutique uses a perpetual inventory system when recording its purchases and sales of inventory. The business sells $6,000 of goods to charge account customers and the goods originally cost Bally, $3,000. The entry to record the sale would include:

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 Teh 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 Analysis

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

Exam 8: Accounting for Purchases and Accounts Payable

Purchases of merchandise on credit should be recorded in:

Good internal control requires a ________ of duties.

A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1. After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal, the balance of the creditor's account on April 30 is:

Each individual entry in the purchases journal is posted to the general ledger at the end of each day.

A cash discount offered to the customer for payment within a specified period, on the books of the buyer

In a small firm, the creditor accounts are placed in--------- order in the accounts payable ledger.

The abbreviation P1 in the Posting Reference column of an account indicates that the data was posted from page 1 of the cash payments journal.

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

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:

Bally Boutique uses a perpetual inventory system when recording its purchases and sales of inventory. The business sells $6,000 of goods to charge account customers and the goods originally cost Bally, $3,000. The entry to record the sale would include:

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 Teh 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 Analysis

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