Question 1

Individual amounts in the purchases journal are posted to the general ledger during the month.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

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 4

Purchases of merchandise on credit should be recorded in

Accepted Answer

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

Question 5

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 6

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid 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 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

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 9

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 10

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 11

To show that the totals of the amount columns in the purchases journal were posted, the appropriate account numbers are written in parentheses below the totals.

Accepted Answer

A) True 
 B)False

Question 12

The Picture Perfect Camera Shop had the following transactions for the month of August 2013. 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 13

Good internal control requires a ____________________ of duties.

Accepted Answer

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

Question 14

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 15

Freight In and Purchases Returns and Allowances are deducted from Purchases to determine the net delivered cost of purchases.

Accepted Answer

A) True 
 B)False

Question 16

The Purchases Returns and Allowances account has a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 17

On June 30, 2013, 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

A) $19,500

Question 18

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 19

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)

Question 20

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...

Individual amounts in the purchases journal are posted to the general ledger during the month.

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

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

Purchases of merchandise on credit should be recorded in

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

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.

Freight charges on merchandise purchases should be debited to

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.

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

To show that the totals of the amount columns in the purchases journal were posted, the appropriate account numbers are written in parentheses below the totals.

The Picture Perfect Camera Shop had the following transactions for the month of August 2013. 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.

Good internal control requires a ____________________ of duties.

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?

Freight In and Purchases Returns and Allowances are deducted from Purchases to determine the net delivered cost of purchases.

The Purchases Returns and Allowances account has a normal debit balance.

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.

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 small firm, the creditor accounts are placed in ____________________ order in the accounts payable ledger.

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

Filters

Exam 8: Accounting for Purchases and Accounts Payable

Individual amounts in the purchases journal are posted to the general ledger during the month.

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

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

Purchases of merchandise on credit should be recorded in

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

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.

Freight charges on merchandise purchases should be debited to

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.

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

To show that the totals of the amount columns in the purchases journal were posted, the appropriate account numbers are written in parentheses below the totals.

The Picture Perfect Camera Shop had the following transactions for the month of August 2013. 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.

Good internal control requires a ____________________ of duties.

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?

Freight In and Purchases Returns and Allowances are deducted from Purchases to determine the net delivered cost of purchases.

The Purchases Returns and Allowances account has a normal debit balance.

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.

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 small firm, the creditor accounts are placed in ____________________ order in the accounts payable ledger.

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

Filters