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3.01 PURCHASES CASH PAYMENTS
3.02 SALES AND CASH RECEIPTS
3.03 POST TRANSACTIONS
3.04 CLOSING ACTIVITIES
3.00 IN THE MIX
100
In the transaction, PURCHASED SUPPLIES ON ACCOUNT FROM SMITH OFFICE SUPPLIES, you should: a. Debit Accounts Payable/Smith Office Supplies and credit Supplies. b. Debit Purchases and credit Accounts Payable/Smith Office Supplies. c. Debit Supplies and credit Accounts Payable/Smith Office Supplies. d. Debit Supplies Expense and credit Accounts Payable.
What is c. Debit Supplies and credit Accounts Payable/Smith Office Supplies.
100
In the transaction, RECEIVED PAYMENT ON ACCOUNT FROM SMITH ELECTRONICS, you should: a. Debit Cash and credit Accounts Payable/Smith Electronics. b. Debit Cash and credit Accounts Receivable/Smith Electronics. c. Debit Accounts Payable/Smith Electronics and credit Cash. d. Debit Accounts Receivable/Smith Electronics and credit Cash.
What is b. Debit Cash and credit Accounts Receivable/Smith Electronics.
100
When preparing a schedule of accounts receivable, the customer accounts are always listed: a. From the largest balance to the smallest balance. b. From the oldest customer to the newest customer. c. From the smallest balance to the largest balance. d. In alphabetical order.
What is d. In alphabetical order.
100
The formula for computing cost of goods sold is: a. Beginning Inventory minus Purchases plus ending Inventory. b. Beginning Inventory plus Purchases minus ending Inventory. c. Ending Inventory plus Purchases minus beginning Inventory. d. Purchases plus beginning Inventory plus ending Inventory.
What is b. Beginning Inventory plus Purchases minus ending Inventory.
100
After completing a worksheet, the first financial statement to prepare is the: a. Balance sheet. b. Income statement. c. Statement of changes in financial position. d. Statement of changes in owners' equity.
What is b. Income statement.
200
In the transaction, PURCHASED SUPPLIES ON ACCOUNT FROM HOME DEPOT, you should: a. Debit Purchases and credit Accounts Payable/Home Depot. b. Debit Purchases and credit Accounts Receivable/Home Depot. c. Debit Supplies and credit Accounts Payable/Home Depot. d. Debit Supplies Expense and credit Accounts Payable/Home Depot.
What is c. Debit Supplies and credit Accounts Payable/Home Depot.
200
In the transaction, SOLD MERCHANDISE ON ACCOUNT, you should debit: a. Accounts Payable. c. Purchases. b. Accounts Receivable. d. Sales and Sales Tax Payable.
What is b. Accounts Receivable.
200
All transactions recorded in a purchases journal: a. Decrease the balance of the Accounts Payable account. b. Decrease the balance of the Merchandise Inventory account. c. Increase the balance of the Income Summary account. d. Increase the balance of the Purchases account.
What is d. Increase the balance of the Purchases account.
200
Find the cost of merchandise sold, given the following information: Purchases, $8438; Beginning Inventory, $46,517; Ending Inventory, $41,994. a. $12,961 c. $38,079 b. $33,556 d. $54,955
What is a. $12,961
200
Sales discounts are: a. Added to Purchases. c. Deducted from Sales. b. Added to Sales. d. Not given to customers.
What is c. Deducted from Sales.
300
In the transaction, JOHN SMITH, OWNER, WITHDREW MERCHANDISE FOR PERSONAL USE, you should: a. Debit John Smith, Drawing and credit Cash. b. Debit John Smith, Drawing and credit Purchases. c. Debit Merchandise and credit John Smith, Drawing. d. Debit Purchases and credit John Smith, Drawing.
What is b. Debit John Smith, Drawing and credit Purchases.
300
In the transaction, SOLD MERCHANDISE ON ACCOUNT TO MARY SMITH, you should: a. Debit Accounts Payable/Mary Smith and credit Sales and Sales Tax Payable. b. Debit Accounts Receivable/Mary Smith and credit Purchases. c. Debit Accounts Receivable/Mary Smith and credit Sales and Sales Tax Payable. d. Debit Purchases and credit Accounts Receivable/Mary Smith.
What is c. Debit Accounts Receivable/Mary Smith and credit Sales and Sales Tax Payable.
300
When posting totals from the purchases journal, you: a. Debit Accounts Payable and credit Purchases. b. Debit Accounts Receivable and credit Purchases. c. Debit Purchases and credit Accounts Payable. d. Debit Purchases and credit Accounts Receivable.
What is c. Debit Purchases and credit Accounts Payable.
300
If total sales for a period are $25,496, total expenses are $13,387, and owner’s withdrawal is $2,500, the owner’s capital account is increased by: a. $9,609. c. $14,609. b. $12,109. d. $27,996.
What is a. $9,609.
300
An agreement between a buyer and a seller about payment for merchandise is called the: a. Correcting entry. c. Sales invoice. b. Purchase invoice. d. Terms of sale.
What is d. Terms of sale.
400
In the transaction, PURCHASED OFFICE EQUIPMENT ON ACCOUNT FROM TAYLOR’S OFFICE SUPPLY, you should: a. Debit Accounts Receivable/Taylor Office Supply and credit Office Equipment. b. Debit Office Equipment and credit Accounts Payable/Taylor’s Office Supply. c. Debit Office Equipment and credit Accounts Receivable/Taylor’s Office Supply. d. Debit Office Equipment and credit Cash.
What is b. Debit Office Equipment and credit Accounts Payable/Taylor’s Office Supply.
400
On January 1, ABC Inc. sold merchandise on account to Smith Supply Company for $500. The credit terms were 2/10, n/30. ABC Inc. received a check from Smith Supply Company on January 20. The correct amount of the check is: a. $10. c. $500. b. $490. d. $510.
What is c. $500.
400
Accounts Receivable had a normal balance of $1,500 on May 31. There were debit postings of $900 and credit postings of $700 during June. What was the Accounts Receivable balance on June 30? a. $1,300 credit c. $1,700 credit b. $1,300 debit d. $1,700 debit
What is d. $1,700 debit
400
An income statement has main headings for: a. Assets, liabilities, and owner’s equity. b. Owners’ equity, share of net income, and drawing. c. Revenue, cost of merchandise sold, and expenses. d. Revenue, expenses, and inventory.
What is c. Revenue, cost of merchandise sold, and expenses.
400
The Purchases account is classified as a/an: a. Asset account. c. Expense account. b. Cost of merchandise account. d. Revenue account.
What is b. Cost of merchandise account.
500
In the transaction, JOHN SMITH, OWNER, WITHDREW CASH FOR PERSONAL USE, you would: a. Debit Cash and credit John Smith, Drawing. b. Debit John Smith, Drawing and credit Cash. c. Debit John Smith, Drawing and credit John Smith, Capital. d. Debit John Smith, Capital and credit John Smith, Drawing.
What is b. Debit John Smith, Drawing and credit Cash.
500
When cash is received on account, the: a. Accounts Receivable account decreases. b. Accounts Payable account decreases. c. Amount to be collected from customers increases. d. Balance of the Cash account decreases.
What is a. Accounts Receivable account decreases.
500
Accounts Payable had a normal beginning balance of $1,000. There were debit postings of $600 and credit postings of $400 during the period. What was the ending balance? a. $800 credit c. $1,200 credit b. $800 debit d. $1,200 debit
What is a. $800 credit
500
If beginning inventory is $55,439 and ending inventory is $53,982, the adjusting entry would be a: a. Credit to Income Summary for $1,457. b. Credit to Merchandise Inventory for $1,457. c. Credit to Purchases for $1,457. d. Debit to Merchandise Inventory for $1,457.
What is b. Credit to Merchandise Inventory for $1,457.
500
Sales Discount is a contra account for which account? a. Prepaid Insurance c. Sales b. Purchases d. Supplies
What is c. Sales