Accounting I Ch. 9 Review #3

A periodic inventory conducted by counting, weighing or measuring items on hand is called a(n)

The Contra Account to Purchases is Purchases Discount and it has a normal Debit balance.

Total of a Schedule of A/P less Purchase Discounts taken during the month will equal total A/P.

An employee working with an Account can trace a transaction back to the correct journal by using:

The total of the Vendor Accts in the A/P subsidiary ledger equals the balance of the Controlling Acct-A/P.

Since contra accts are offsets to their related accts, contra account normal balances are:

A business that buys and resells merchandise primarily to sell to other Merchandising Businesses.

The Purchases acct is classified as a(n)

An organization with the legal rights of a person which many persons or organizations own.

A Corporation can own property, incur liabilities, and enter into contracts in its own name

The petty cash account Cash Short and Over is a temporary account

Merchandising businesses place Purchases in the Operating Exp. section of the Income Statement

A purchase of merchandise for cash would be posted

A merchandising business that sells to those who use or consume the goods.

Merchandise paid w/Cash, that included a Trade Discount, would include a Credit to Purchases Discount.

A Corporation exists independent of its owners.

Supplies bought for use in a business are recorded in the:

Periodic inventory method is evaluated at the end of a fiscal period.

Terms 2/10, n/30 means 2% of the invoice amt is deducted if paid within 30 days

Each unit of ownership in a corporation.