AC2100 Mini Assign 4 Chapter 7

purchase order

A form used in business to place an order for the buying of goods from a seller is A) purchases returns. B) purchase discount. C) purchase requisition. D) purchase order.

a schedule of accounts payable

A list of creditors with balances owed is called A) a list of suppliers. B) a schedule of accounts payable. C) a trade list. D) a schedule of accounts receivable

subsidiary ledger

Accounts of a single type are kept in this ledger. A) additional ledger. B) subsidiary ledger. C) supplemental ledger. D) None of these answers are correct.

2% discount is allowed if the bill is paid within 10 days, or the entire amount is due within 30 days

Credit terms of 2/10, n/30 mean that A) a discount is allowed if the bill is paid after 10 days. B) a 2% discount is allowed if the customer pays the bill within 30 days. C) a discount is allowed if the bill is paid within 30 days. D) 2% discount is allowed if the bill is paid within 10 days, or the entire amount is due within 30 days.

the bill is due 15 days after the end of the month and no discount is allowed

Credit terms of n/15, EOM means that A) if the bill is paid 10 days after the end of the month, a discount is allowed. B) if the bill is paid by the end of the month, a discount will be granted. C) the bill is due 15 days after the end of the month and no discount is allowed. D) the bill is due 15 days before the end of the month.

$392

Jackson purchased $400 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period? A) $400 B) $392 C) $408 D) $360

$400

Jackson purchased $400 of goods on Feb 8 and received credit terms of 2/10, n/30. How much did he pay if payment was made on Feb 21? A) $360 B) $408 C) $392 D) $400

credit terms

The arrangements between buyer and seller as to when payments for merchandise are to be made are called A) cash on demand. B) net cash. C) credit terms. D) gross cash.

debit to Accounts Payable for $500

The entry to record a payment on a $500 account within the 2% discount period would include a A) credit to Purchases for $510. B) debit to Accounts Payable for $490. C) debit to Accounts Payable for $500. D) debit to Cash for $490

debit to Accounts Payable for $900

The entry to record a payment sent on a $900 account within the 1% discount period would include a A) credit to Inventory for $909. B) debit to Accounts Payable for $900. C) debit to Accounts Payable for $891. D) debit to Cash for $891.

general ledger

The principal ledger containing all the balance sheet and income statement accounts is the A) general ledger. B) AP ledger. C) AR ledger. D) employee ledger.

recording purchases of merchandise

The purchases journal is used for A) recording purchases of merchandise. B) recording cash payments. C) recording credit sales. D) recording cash purchases.

Cash Payments journal

The special journal used to record all transactions involving payment of cash is a A) Cash Payments journal. B) Sales journal. C) Cash Receipts journal. D) Purchases journal.

F.O.B. shipping point

The term used when the purchaser is responsible for the cost of freight is A) F.O.B. destination. B) F.O.B. purchaser. C) F.O.B. shipping point. D) F.O.B. seller.

schedule of accounts payable

To prove the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a A) schedule of accounts payable. B) schedule of accounts receivable. C) debit memorandum. D) purchase order.

when goods are shipped

When the term F.O.B. shipping point is used, title passes A) when the buyer unpacks the goods. B) when goods reach the destination. C) when goods are shipped. D) when goods reach the halfway point

controlling account

When using a subsidiary ledger, the Accounts Payable account in the general ledger is called the A) subsidiary account. B) master account. C) receivable account. D) controlling account.

Accounts Payable in the general ledger

Which account is the controlling account for the amounts owed to individual creditors? A) Accounts Payable in the general ledger B) Accounts Receivable in the general ledger C) Accounts Receivable in the subsidiary ledger D) Accounts Payable in the subsidiary ledger

Customer

Which of the following does NOT receive a copy of the Purchase Order? A) Supplier B) Accounting department C) Department that initiated purchase requisition D) Customer

Personnel Journal

Which of the following is NOT a main type of Special Journal? A) Cash Receipts Journal B) Cash Payments Journal C) Personnel Journal D) Purchases Journal