Accounting chapter 9 Schmidt

Question 1

The source document for a cash purchase is

Accepted Answer

a check

Question 2

a form prepared by the customer showing the price deduction taken by the cust for returns/allow

Accepted Answer

debit memorandum

Question 3

An organ. with legal rights of a person and which may be owned by many persons

Accepted Answer

corporation

Question 4

Purchases Returns and Allowances is a contra account to Cost of Merchandising.

Accepted Answer

False

Question 5

A journal used to record only one kind of transaction

Accepted Answer

special journal

Question 6

Supplies bought for use in a business are recorded in the

Accepted Answer

supplies account

Question 7

a deduction that a vendor allows on the invoice amount to encourage prompt payment

Accepted Answer

cash discount

Question 8

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

Accepted Answer

retail merchandising business

Question 9

an invoice used as a source document for recording a purchase on account transaction

Accepted Answer

purchase invoice

Question 10

The purchases account is classified as

Accepted Answer

a cost account

Question 11

The term sale 1/10, n/30 means a 1% discount if paid within 30 days.

Accepted Answer

False

Question 12

Since contra accounts are offsets to their related accounts, contra account normal balances are

Accepted Answer

opposite the normal balance of related accounts

Question 13

Each unit of ownership in a corporation

Accepted Answer

share of stock

Question 14

If petty cash on hand is $53, but there should be $55, it is said the fund is over cash.

Accepted Answer

False

Question 15

Credit allowed for the purchase price of returned merch, resulting in decrease in acct. payable

Accepted Answer

purchases return

Question 16

Purchases returns and allowances

Accepted Answer

decrease the amount of purchases

Question 17

If purchase is $1,000 on Aug. 1, 2/10, n/30, the amount due Aug. 9 is

Accepted Answer

980

Question 18

Trade discounts normally are recorded in the purchases discount account.

Accepted Answer

True

Question 19

8/1 listed at 1,500, purchase for 900, terms 2/10, n/30. Pay on 8/17, how much do you owe?

Accepted Answer

900

Question 20

300 petty cash fund. receipts total 224 and cash of 74. one part of the entry is

Accepted Answer

debit to cash short and over 2.00

Question 21

A cash discount on purchases taken by customer

Accepted Answer

purchase discount

Question 22

Purchases Discount is increased by a credit entry.

Accepted Answer

True

Question 23

The purchases account is increased by a credit and decreased by a debit.

Accepted Answer

False

Question 24

Total shares of ownership in a corporation

Accepted Answer

capital stock

Accounting chapter 9 Schmidt

Questions 24

Accounting chapter 9 Schmidt

Questions 24