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Ch. 15 Accounting: Purchases and Cash Payments Flashcards | StudBud
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Ch. 15 Accounting: Purchases and Cash Payments
Ch. 15 Accounting: Purchases and Cash Payments
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Accounting for Purchases and Cash Payments, accounts payable subsidiary ledger.
Flashcards
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Questions
24
Answers
1
The date an invoice must be paid is called the _____.
Past Due Date
Due Date
Invoice Date
Purchased Date
2
The account used to record the cost of merchandise purchased during the fiscal period.
Sales Discount
Purchases
Sales
Purchases Discounts
3
Merchandise returned by the buyer to the supplier for full credit is a _________.
Sales Return
Sales Allowance
Purchases Return
Purchases Allowance
4
T/F Purch. Returns & Allowances is in the Cost of merchandise section of the Chart of Accounts
False
True
5
T/F The Purchases account is a permanent account.
True
False
6
T/F Accounts in the accounts payable subsidiary ledger have normal debit balances.
False
True
7
The ______ is the actual cost to the business of the merchandise sold to customers.
Cost of Merchandise
Shipping Cost
Invoice Cost
8
Transportation In account is classified as a Cost of Merchandise account.
False
True
9
A source document from the buyer tells the seller that the seller's account will be decreased.
Invoice
Cash receipt
Debit memorandum
Credit memorandum
10
A business receives a ______ if it keeps damaged merchandise & pays less than original price.
Sales Return
Purchases Allowance
Sales Allowance
Purchases Return
11
The decrease side of the Purchases Returns & Allowances account is a credit.
False
True
12
T/F A Purchases Returns & Allowances is posted only to the A/P Subsidiary ledger.
True
False
13
A ____ contains invoices to be paid, arranged by their due dates.
Invoice File
Tickler File
Tickle Me Elmo
14
When the supplier pays the shipping cost to the buyer's destination.
FOB Destination
FOB Shipping Point
15
T/F the balance of the Purchases Return & Allowances account increases the Purchases Account.
True
False
16
Shipping terms of _______ means the buyer pays the shipping from the supplier's shipping point.
FOB Shipping Destination
FOB Shipping Point
FOB Destination
17
A ledger that contains all creditors and the amount owed to each creditor.
Accounts Receivable
General Ledger
Accounts Payable Subsidiary Ledger
A/R Subsidiary Ledger
18
A ____ lists the credit terms, quantity, unit price, and total cost shipped to the buyer.
Packing Slip
Purchase order
Purchase Requisition
Invoice
19
T/F Every purchase on account results in a debit to Accounts Payable.
True
False
20
The form that lists the items included in a shipment is called a _____.
Packing Slip
Sales Slip
Invoice
Receipt
21
The amount paid for insurance is called a _______.
Prepaid Insurance
Cost Sharing
Earned Premium
Premium
22
Amount charged by a bank for handling business' bankcard sales slips.
Credit Card Fees
Processing Fees
Debit Card Fees
Bankcard Fees
23
T/F The Purchases account is used only to record the purchases of merchandise for resale.
True
False
24
A _____ is written request that certain items be ordered.
Purchase Order
Packing Slip
Invoice
Purchase Requisition
