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Accounting Ch 9 Review Flashcards | StudBud
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Accounting Ch 9 Review
Accounting Ch 9 Review
40 terms
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special journals: Purchases and Cash Payments
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
The owner of one or more shares of stock
article of incorporation
share of stock
requistion
stockholder
2
A merchandise inventory evaluated at the end of a fiscal period.
periodic inventory
perpetual inventory
3
An acct in a gen ledger that summarizes all accts in a subsidiary ledger
cash discount
controlling account
trade discount
contra account
4
The transaction: Purchased merchandise on account would go in the _____ journal
Purchases
Multicolumn
Cash Payments
5
An inventory determined by keeping a continuous record of +,-, and the bal on hand of each item
periodic inventory
perpetual inventory
6
Employee working w/an account can trace a transaction back to correct journal by using info ___
in the Post. Ref. column
in the Item column
in the Vendor column
in the Purch No column
7
A corporation can own property, incur liabilities, and enter into contracts in its own name
True
False
8
An agreement between a buyer and a seller about payment for merchandise.
cash discount
terms of sale
credit limit
purchase order
9
The transaction: Paid cash on account to Duncan, Inc., would go in the _____ journal
Multicolumn
Cash Payments
Purchases
10
A journal amount column that is not headed with an account title.
general amount column
special amount column
11
A journal used to record only one kind of transaction.
special journal
controlling account
general amount column
requisition
12
The total of accts in the AP Subsidiary Ledger = the balance of the controlling acct, Accts Pay
True
False
13
A purchase of merchandise for cash would be posted
individually to Purchases
individually to Purchases and individually to Accounts Pay
as part of column totals to Purchases and Accounts Payable
as part of a column total to Purchases
14
A deduction that a vendor allows on an invoice amount to encourage prompt payment
trade discount
cash discount
credit limit
purchase order
15
An account that reduces a related account on a financial statement.
trade discount
contra account
controlling account
cash discount
16
A legal document that identifies basic characteristics of a corporation
articles of incorporation
charter
contra account
requisition
17
Since contra accounts are offsets to their related accounts, contra account normal balances are
opposite the normal balance of their related accounts
credits
debits
the same as the normal balances of their related accounts
18
The Purchases account is classified as a(n) _____.
cost of goods sold account
expense account
liability account
asset account
19
Supplies bought for use in a business are recorded in the _____
Purchases account
Supplies account
Cash account
Supplies Expense account
20
To replenish $300 petty cash fund, if receipts total $224 & cash of $74 is in petty cash box __
part of journal entry is debit to Cash Short &Over for $2.00
part of journal entry is debit to Petty Cash for $224
part of journal entry is credit to Cash Short&Over for $2.00
part of journal entry is credit to Cash for $224
21
The contra account Purchases Discount has a normal debit balance.
True
False
22
Terms 1/10, n/30 means that 10% of the invoice amount may be deducted if paid within 30 days.
False
True
23
A listing of vendor accts, acct balances, and total amt due to all vendors
requisition
articles of incorporation
schedule of accounts payable
purchase order
24
A periodic inventory conducted by counting, weighing or measuring items of merch on hand is a _
perpetual inventory
audit verification
inventory certification
physical inventory
25
When journalizing a cash payment for advertising, the vendor's name is written in Account Title
True
False
26
An organization with legal rights of a person which many persons or other corporations may own.
requisition
retail merchandising business
wholesale merchandising business
corporation
27
A corporation exists independent of its owners.
True
False
28
A business that buys and resells merchandise primarily to other merchandising businesses.
retail merchandising business
wholesale merchandising business
29
Each unit of ownership in a corporation
credit limit
stockholder
controlling account
share of stock
30
Purchase invoice lists quantity, description & price of each item & shows total amt of purchase
False
True
31
Merch w/list price $1500 is purch on acct for $900 Aug 1, Terms 2/10, n/30. Payment made Aug 18
The amount paid should be $600
The amount paid should be $900
The amount paid should be $1500
The amount paid should be $882
32
A form requesting that a vendor sell merchandise to a business.
articles of incorporation
purchase order
requisition
credit limit
33
The petty cash account Cash Short and Over is a temporary account.
False
True
34
A merchandising business that sells to those who use or consume the goods.
wholesale merchandising business
retail merchandising business
35
The maximum outstanding balance allowed to a customer by a vendor.
purchase order
credit limit
trade discount
cash discount
36
The retail price listed in a catalog or on an Internet site.
purchase order
list price
credit limit
cash discount
37
A reduction in the list price granted to a merchandising business.
list price
purchase order
cash discount
trade discount
38
Transaction to record merch purchased w/trade discount would include a debit to Merch Discount
False
True
39
Exceeding a vendor's credit limit can cause a disruption in company's ability to purchase merch
True
False
40
A form requesting the purchase of merchandise.
special journal
purchase order
requisition
credit limit
