Accounting 12 10.3-10.5 Review

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Questions 16

Answers

1
Cost of goods available for sale is the beginning inventory plus purchases
True
False
2
An item was omitted from the ending inventory
Assets are not affected
Capital is not affected
Assets are understated
Assets are overstated
3
A payment made by McCann Hardware Store that should be recorded by debiting Purchases
payment of merchandise freight
purchase of merchandise
purchase of office supplies
purchase of delivery truck
4
A reduction of the amount fo a bill if payment is made on or before discount date
Return or allowance
Cash discount
Net discount
None of the above
5
COD
Cash on discount
Credit on discount
Cash on delivery
Credit on delivery
6
The most common terms of sale are "Net 30"
False
True
7
2% discount if paid in 10 days, otherwise full amount due in 30 days is written on an invoice...
2/10, n/30
10/2,n/30
none of the above
30/n, 2/10
8
If ending inventory is overstated by $2000 at end of accounting period, then
net income will be overstated
All of the above
cost of goods sold will be understated
gross profit will be overstated
9
Defective merchandise returned by a customer
Sales return
Credit invoice
Cash refund
Adjusting entry
10
Beginning inventory $22,000, Purchases $40,000, COGS $50,000
Ending Inventory is $62,000
Ending Inventory is $28,000
None of the above
Ending Inventory is $12,000
11
Net sales, given sales of $85,000, Sales R&A $2,000, Discounts Allowed of $3000
$83,000
$90,000
$85,000
$80,000
12
Added to purchases in COGS calculation
Ending inventory
Purchase returns and allowances
None of the above
Freight in
13
A credit invoice issued by a business will
Decrease the liabilities
increase the capital
Decrease the assets
Increase the assets
14
Sales returns are always
credited to Sales Returns and Allowances account
Debited to the Sales Returns and Allowances account
Debited to the Sales account
Either b or c
15
COD means that a customer is extended credit and can pay their bill at some point in the future
True
False
16
When a credit note is issued, the payment date required for a discount doesn't change
False
True

Accounting 12 10.3-10.5 Review Flashcards | StudBud

Accounting 12 10.3-10.5 Review

16 termsStudBud Administration48 plays

Imported from external platform

Flashcards16 cardsFPractice quizPHost liveL

Questions 16

Answers

1
Cost of goods available for sale is the beginning inventory plus purchases
True
False
2
An item was omitted from the ending inventory
Assets are not affected
Capital is not affected
Assets are understated
Assets are overstated
3
A payment made by McCann Hardware Store that should be recorded by debiting Purchases
payment of merchandise freight
purchase of merchandise
purchase of office supplies
purchase of delivery truck
4
A reduction of the amount fo a bill if payment is made on or before discount date
Return or allowance
Cash discount
Net discount
None of the above
5
COD
Cash on discount
Credit on discount
Cash on delivery
Credit on delivery
6
The most common terms of sale are "Net 30"
False
True
7
2% discount if paid in 10 days, otherwise full amount due in 30 days is written on an invoice...
2/10, n/30
10/2,n/30
none of the above
30/n, 2/10
8
If ending inventory is overstated by $2000 at end of accounting period, then
net income will be overstated
All of the above
cost of goods sold will be understated
gross profit will be overstated
9
Defective merchandise returned by a customer
Sales return
Credit invoice
Cash refund
Adjusting entry
10
Beginning inventory $22,000, Purchases $40,000, COGS $50,000
Ending Inventory is $62,000
Ending Inventory is $28,000
None of the above
Ending Inventory is $12,000
11
Net sales, given sales of $85,000, Sales R&A $2,000, Discounts Allowed of $3000
$83,000
$90,000
$85,000
$80,000
12
Added to purchases in COGS calculation
Ending inventory
Purchase returns and allowances
None of the above
Freight in
13
A credit invoice issued by a business will
Decrease the liabilities
increase the capital
Decrease the assets
Increase the assets
14
Sales returns are always
credited to Sales Returns and Allowances account
Debited to the Sales Returns and Allowances account
Debited to the Sales account
Either b or c
15
COD means that a customer is extended credit and can pay their bill at some point in the future
True
False
16
When a credit note is issued, the payment date required for a discount doesn't change
False
True