Accounting Ch. 9

Question 1

A journal used to record only one kind of transaction

Accepted Answer

special journal

Question 2

A merchandising busn. places Purchases in the Operating Expenses section of an income statement

Accepted Answer

False

Question 3

The retail price listed in a catalog or on an Internet site

Accepted Answer

list price

Question 4

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

Accepted Answer

physical inventory

Question 5

The contra account Purchases Discount has a normal debit balance

Accepted Answer

False

Question 6

A journal amount column that is not headed with an account title

Accepted Answer

general amount column

Question 7

An employee working w/ an account can trace a transaction back to the correct journal with the

Accepted Answer

Post Ref. column

Question 8

A corporation exists independently of its owners

Accepted Answer

True

Question 9

The maximum outstanding balance allowed to a customer by a vendor

Accepted Answer

credit limit

Question 10

The Purchases account is classified a a(n)

Accepted Answer

cost of goods sold account

Question 11

An organization with the legal rights of a person which many persons or other corps. may own

Accepted Answer

corporation

Question 12

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

Accepted Answer

cash discount

Question 13

A corporation can own property, incur liabilities, & enter into contracts in its own name

Accepted Answer

True

Question 14

Total of a schedule of AP less purchases discounts taken during the month will = Total of AP

Accepted Answer

False

Question 15

Periodic inventory method does not require records of the quantity & cost of individual goods

Accepted Answer

True

Question 16

A legal document that identifies basic characteristics of a corporation

Accepted Answer

articles of incorporation

Question 17

A business that buys and resells merchandise to other merchandising businesses

Accepted Answer

wholesale merchandising business

Question 18

An account that reduces a related account on a financial statement

Accepted Answer

contra account

Question 19

An agreement between a buyer and a seller about payment for merchandise

Accepted Answer

terms of sale

Question 20

A form requesting that a vendor sell merchandise to a business

Accepted Answer

purchase order

Question 21

The terms of sale 1/10, n/30 means you can deduct 10% if paid within 30 days from the invoice

Accepted Answer

False

Question 22

A reduction in the list price granted to a merchandising business

Accepted Answer

trade discount

Question 23

An account in a General Ledger that summarizes all accounts in a subsidiary ledger

Accepted Answer

controlling account

Question 24

The petty cash account, Cash Short & Over, is a temporary account

Accepted Answer

True

Question 25

Each unit of ownership in a corporation

Accepted Answer

share of stock

Question 26

Total of accts in the AP subsidiary ledger = balance of the controlling acct, Accounts Payable

Accepted Answer

True

Question 27

A merchandise inventory evaluated at the end of a fiscal period

Accepted Answer

periodic inventory

Question 28

A form requesting the purchase of merchandise

Accepted Answer

requisition

Question 29

An inventory determined by keeping a continuous record of increases/decreases & balance on hand

Accepted Answer

perpetual inventory

Question 30

Transactions to record merch. purchased w/ a trade discount include a Dr. to Merch. Discount

Accepted Answer

False

Question 31

Supplies bought for use in a business are recorded in the

Accepted Answer

Supplies account

Question 32

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

Accepted Answer

retail merchandising business

Question 33

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

Accepted Answer

opposite the normal balances of their related accounts

Question 34

The owner of one or more shares of stock

Accepted Answer

stockholder

Question 35

A listing of vendor accounts, account balances, and the total amount due to all vendors

Accepted Answer

schedule of accounts payable

Question 36

A purchase of merchandise for cash would be posted

Accepted Answer

individually to Purchases

Accounting Ch. 9

Questions 36

Accounting Ch. 9

Questions 36