Question 1

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 creditE) B) and D)
F) C) and D)

Question 2

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...

Question 3

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 4

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 ReceivableE) B) and C)
F) A) and C)

Question 5

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.E) C) and D)
F) A) and D)

Question 6

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 $6,000E) A) and B)
F) B) and C)

Question 7

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 orderF) Purchase requisitionG) Purchase returnH) Purchases accountI) Purchases discountJ) Purchases journalK) Receiving reportL) Sales discountM) Sales invoiceN) Schedule of accounts payableO) A) and N)
P) D) and E)

Question 8

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 9

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

Accepted Answer

purchase r...

Question 10

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 11

Good internal control requires a ________ of duties.

Accepted Answer

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

Exam 8: Accounting for Purchases and Accounts Payable

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

Correct Answer
verified

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

Correct Answer
verified
purchase r...
View Answer

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

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

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:

Correct Answer
verified

Good internal control requires a ________ of duties.

Correct Answer
verified

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.

Correct Answer
verified

Purchases of merchandise on credit should be recorded in:

Correct Answer
verified

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:

Correct Answer
verified

Match the description with the accounting terms.

Exam 8: Accounting for Purchases and Accounts Payable

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

Correct AnswerverifiedShow Answer

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

Correct Answerverifiedpurchase r...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Good internal control requires a ________ of duties.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Purchases of merchandise on credit should be recorded in:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Match the description with the accounting terms.

Correct Answer
verified

Correct Answer
verified
purchase r...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified