Multiple choice
What is a purchase of merchandise for cash would be posted
a. individually to purchase and individually to Accounts Payable
b. individually to purchases
c. as part of a column totals to purchases
d. as part of column totals to purchases and accounts payable
B. Individually to purchases
What is an employee working with an account can trace a transaction back to the correct journal by using information in the
a. post ref column
b.item column
c. purch. no column
d. vendor column
what is C purch. no column
What is an organization with the legal rights of a person which many persons or other corporations may own
what is a corporation
what is a reduction in the list price granted to a merchandising business?
what is trade discount
True or false a transaction to record merchandise purchased with a trade discount would include a debit to merchandise discount
What is False
Merchandise with a list price of $1,500 is purchased on account for $900 on August 1st. Terms of sale are 2/10, n/30. Payment is made August 17. The amount paid should be?
A. $1,500
B. $900
C. $600
D. $882
B. $900
Since contra accounts are offsets to their related accounts, contra account normal balances are?
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
what is a. debit to cash short and over for $2.00
what is the owner of one or more shares of stock
What is a stockholder
what is an agreement between a buyer and a seller about payment for merchandise called?
what is terms of sale
True or false the petty cash account cash short and over is a temp account
What is True
The purchases account is classified as a(n)
A. expense account
B. asset account
C. Liability account
D. cost of goods sold account
D. Cost of goods sold account
what is a merchandising business that sells to those who use or consume the goods?
What is a legal document that identifies basic characteristics of a corporation
What is articles of corporation
what is a merchandise inventory evaluated at the end of a fiscal period called?
what is a periodic inventory.
True or False a corporation exists independent of its owners
What is True
4. A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand is called a(n)
A. perpetual inventory
B. inventory certification
C. audit verification
D. Physical inventory
D. Physical inventory
what is a business that buys and resells merchandise primarily to other merchandising businesses?
what is wholesale merchandising business
An account in a general ledger that summarizes all accounts in a subsidiary ledger
What is a controlling account
what is an account that reduces a related account on a financial statement?
True or false 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
What is False
A. Supplies expense account
B. Supplies account
C. Purchases account
D. Cash account
B. Supplies account
what is each unit of ownership in a corporation called?
what is share of stock
The retail price listed in a catalog or on an Internet site
What is lis price
what is a form requesting the purchase of merchandise?
what is a requisition
True or false a Merchandising business places purchases in the operating expenses section of the income statement
What is False