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FNSACC322 Chapter 7 Flashcards | StudBud
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FNSACC322 Chapter 7
FNSACC322 Chapter 7
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Credit purchases & Credit sales
Flashcards
7 cards
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Practice quiz
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Questions
7
Answers
1
What are other terms for a credit customer?
Accounts Receivable
Debtor
Creditor
Accounts Payable
2
Which of the following accounts is typically affected by credit sales?
Accounts payable
Cash
Inventory
Accounts receivable
3
Subsidiary ledgers are posted to the same side as the general ledger?
True
False
4
What are other terms for credit suppliers?
Debtors
Accounts receivable
Accounts payable
Creditors
5
When a business purchases goods on credit, what is the journal entry?
Debit cash, Credit sales Credit GST Collected
Debit Inventory Debit GST Paid, Credit Accounts Payable
Debit Accs payable Credit inventory Credit GST Paid
Debit Accs Receivable Credit Sales Credit GST Collected
6
What is a credit sale?
A sale where payment is made in cash
A sale where the customer pays at a point in time after receiving the goods
A sale where goods are returned
A sale where a discount is applied
7
Fill in the blank. When goods are purchased on credit, the buyer records a liability in ________ account?
Accounts Payable
Accounts Receivable
Purchases
Bank
