Question 1

Select the one term that best fits each definition.
-A deduction that a vendor allows on an invoice amount to encourage prompt payment.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) F) and K)
V) C) and N)

Question 2

Supplies bought for use in a business are recorded in the

Accepted Answer

A)   Supplies Expense account.
B)   Supplies account.
C)   Purchases account.
D)   Cash account.E) A) and B)
F) A) and C) B

Question 3

Select the one term that best fits each definition.
-An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) M) and S)
V) N) and R)

Question 4

Select the one term that best fits each definition.
-A form requesting that a vendor sell merchandise to a business.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) K) and O)
V) D) and N)

Question 5

The total of a schedule of accounts payable less purchases discounts taken during the month will equal the total of Accounts Payable.

Accepted Answer

A) True 
 B)False  False

Question 6

A purchase of merchandise for cash would be posted

Accepted Answer

A)   individually to Purchases and individually to Accounts Payable.
B)   individually to Purchases.
C)   as part of a column total to Purchases.
D)   as part of column totals to Purchases and Accounts Payable.E) None of the above
F) A) and C)

Question 7

The terms of sale 1/10, n/30 means that 1/10 or 10% of the invoice amount may be deducted if paid within 30 days.

Accepted Answer

A) True 
 B)False

Question 8

A corporation can own property, incur liabilities, and enter into contracts in its own name.

Accepted Answer

A) True 
 B)False

Question 9

Select the one term that best fits each definition.
-A journal amount column that is not headed with an account title.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) D) and E)
V) A) and B) G

Question 10

Select the one term that best fits each definition.
-An organization with the legal rights of a person which many persons or other corporations may own.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) K) and Q)
V) G) and R)

Question 11

Select the one term that best fits each definition.
-A reduction in the list price granted to a merchandising business.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) A) and G)
V) E) and L)

Question 12

A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand is called a(n)

Accepted Answer

A)   perpetual inventory.
B)   inventory certification.
C)   audit verification.
D)   physical inventory.E) B) and C)
F) A) and D)

Question 13

A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount.

Accepted Answer

A) True 
 B)False

Question 14

A merchandising business places Purchases in the Operating Expenses section of the income statement.

Accepted Answer

A) True 
 B)False

Question 15

Select the one term that best fits each definition.
-The maximum outstanding balance allowed to a customer by a vendor.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) O) and P)
V) C) and R)

Question 16

The Purchases account is classified as a(n)

Accepted Answer

A)   expense account.
B)   asset account.
C)   liability account.
D)   cost of goods sold account.E) B) and C)
F) A) and B)

Question 17

Select the one term that best fits each definition.
-Each unit of ownership in a corporation.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) E) and Q)
V) P) and R)

Question 18

Select the one term that best fits each definition.
-An account that reduces a related account on a financial statement.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) G) and L)
V) D) and F)

Question 19

Select the one term that best fits each definition.
-A form requesting the purchase of merchandise.

Accepted Answer

A)   articles of incorporation
B)   cash discount
C)   contra account
D)   controlling account
E)   corporationF)  credit limitG)  general amount columnH)  list priceI)  periodic inventoryJ)  perpetual inventoryK)  purchase orderL)  retail merchandising businessM)  requisitionN)  schedule of accounts payableO)  share of stockP)  special journalQ)  stockholderR)  trade discountS)  terms of saleT)  wholesale merchandising businessU) Q) and R)
V) B) and F)

Question 20

To replenish a $300.00 petty cash fund, if the petty cash custodian had receipts totaling $224.00 and cash of $74.00 in the petty cash box, one part of the journal entry is a

Accepted Answer

A)   debit to Cash Short and Over for $2. 00.
B)   credit to Cash for $224. 00.
C)   debit to Petty Cash for $224. 00.
D)   credit to Cash Short and Over for $2. 00.E) B) and C)
F) All of the above

Exam 9: Accounting for Purchases and Cash Payments

Select the one term that best fits each definition. -A deduction that a vendor allows on an invoice amount to encourage prompt payment.

Correct AnswerverifiedShow Answer

Supplies bought for use in a business are recorded in the

Correct AnswerverifiedB

Select the one term that best fits each definition. -An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -A form requesting that a vendor sell merchandise to a business.

Correct AnswerverifiedShow Answer

The total of a schedule of accounts payable less purchases discounts taken during the month will equal the total of Accounts Payable.

Correct AnswerverifiedFalse

A purchase of merchandise for cash would be posted

Correct AnswerverifiedShow Answer

The terms of sale 1/10, n/30 means that 1/10 or 10% of the invoice amount may be deducted if paid within 30 days.

Correct AnswerverifiedShow Answer

A corporation can own property, incur liabilities, and enter into contracts in its own name.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -A journal amount column that is not headed with an account title.

Correct AnswerverifiedG

Select the one term that best fits each definition. -An organization with the legal rights of a person which many persons or other corporations may own.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -A reduction in the list price granted to a merchandising business.

Correct AnswerverifiedShow Answer

A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand is called a(n)

Correct AnswerverifiedShow Answer

A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount.

Correct AnswerverifiedShow Answer

A merchandising business places Purchases in the Operating Expenses section of the income statement.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -The maximum outstanding balance allowed to a customer by a vendor.

Correct AnswerverifiedShow Answer

The Purchases account is classified as a(n)

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -Each unit of ownership in a corporation.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -An account that reduces a related account on a financial statement.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition. -A form requesting the purchase of merchandise.

Correct AnswerverifiedShow Answer

To replenish a $300.00 petty cash fund, if the petty cash custodian had receipts totaling $224.00 and cash of $74.00 in the petty cash box, one part of the journal entry is a

Correct AnswerverifiedShow Answer

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B

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False

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G

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