Question 1

A credit card purchase is recorded on a(n) form.

Accepted Answer

A)  Invoice
B)  Bill
C)  Expense
D)  Credit Card C

Question 2

When taking an early payment discount for the purchase of merchandise, the discount amount is recorded on the .

Accepted Answer

A)  Bill
B)  Make Payment
C)  Check
D)  Purchase Order A

Question 3

When recording an early payment discount on inventory items, you use the account.

Accepted Answer

A)  Purchases Discount
B)  Merchandise Discount
C)  Sales Discount
D)  Discount Expense B

Question 4

The Payee is the person or company making a payment.

Accepted Answer

A) True 
 B)False

Question 5

If you ordered an inventory item, 10 cans of dog food at $2.00 per can and the sales tax rate is 8 percent, you would pay in sales tax.

Accepted Answer

A)  $1.60
B)  $21.60
C)  $0.00
D)  None of the above

Question 6

A purchase return paid for by credit card is recorded as a Vendor Credit.

Accepted Answer

A) True 
 B)False

Question 7

The Sales Tax Liability report is prepared in the .

Accepted Answer

A)  Manage Payables section of Reports
B)  Review Expenses and Purchases section of Reports
C)  Accountant Reports section of Reports
D)  Sales Tax Center

Question 8

When you do not receive the entire amount of inventory items ordered, you prepare a Purchase Order for the amount on backorder.

Accepted Answer

A) True 
 B)False

Question 9

A bill may be paid using cash, a check, or a company credit card.

Accepted Answer

A) True 
 B)False

Question 10

A Purchase Order is prepared to order inventory items to sell.

Accepted Answer

A) True 
 B)False

Exam 7: Focus on Payables When Purchasing and Paying for Inventory Items, Prepare Purchase Orders, Use a Company Credit Card, Record Purchase and Merchandise Discounts, Make Sales Tax Payments

A credit card purchase is recorded on a(n) form.

When taking an early payment discount for the purchase of merchandise, the discount amount is recorded on the .

When recording an early payment discount on inventory items, you use the account.

The Payee is the person or company making a payment.

If you ordered an inventory item, 10 cans of dog food at $2.00 per can and the sales tax rate is 8 percent, you would pay in sales tax.

A purchase return paid for by credit card is recorded as a Vendor Credit.

The Sales Tax Liability report is prepared in the .

When you do not receive the entire amount of inventory items ordered, you prepare a Purchase Order for the amount on backorder.

A bill may be paid using cash, a check, or a company credit card.

A Purchase Order is prepared to order inventory items to sell.