Accounting Fundamentals: Accounts Payable - Assessment

Which of the following statements is true about the accounts payable subsidiary ledger?

Companies have separate accounts for each vendor owed money

Which of the following is the first step in the process of ordering from a vendor?

A purchase order is sent to the vendor

Which of the following is the correct journal entry if Bargain Boots received their monthly $500 rent bill, which will be paid later?

Debit: Rent Expense ($500); Credit: Accounts Payable ($500)

Maximum Fitness sent their monthly payment of $100 to a vendor for purchasing a $1,000 treadmill on account. Which of the following is the correct journal entry?

Debit: Accounts Payable ($100); Credit: Cash ($100)

Bargain Boots received an invoice after purchasing $1,000 worth of boots from a vendor on credit. Which of the following is the correct journal entry?

Debit: Inventory ($1,000); Credit: Accounts Payable ($1,000)

To which of the following accounts is the accounts payable subsidiary ledger total transferred?

General ledger

Which of the following is a document which authorizes a buyer to receive goods/services from a seller?

Purchase order

Which of the following transactions increases assets?

Purchasing land to store inventory

Which of the following is used to indicate the goods listed on a purchase order were actually received?

Receiving report

Which of the following is a method to ensure accounts payable entries are properly recorded?

Schedule of accounts payable