Accounting I Ch. 9 Review #1

Question 1

If Cash Short and Over is "Short" it is Debited-Increased.

Accepted Answer

True

Question 2

If the Terms on an Invoice say "2/10, n/30," what does that mean in regards to your discount?

Accepted Answer

2% off your Invoice amount if paid in 10 days

Question 3

A business that buys and resells merchandise primarily to other merchandising businesses.

Accepted Answer

Wholesale Merchandising Business

Question 4

Purchases Discount is recorded in what ledger?

Accepted Answer

General Ledger

Question 5

Purchases has a Debit NB.

Accepted Answer

True

Question 6

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

Accepted Answer

List Price

Question 7

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

Accepted Answer

Retail Merchandising Business

Question 8

If Cash Short and Over is (Over) it is a Debit-Increased.

Accepted Answer

False

Question 9

The Purchases Journal only includes____?

Accepted Answer

Merchandise purchased on account

Question 10

When a transactions says "Purchased Merchandise on Account" that ALWAYS means Purchases=Credit.

Accepted Answer

False

Question 11

Purchases Discount has a Normal Balance of____.

Accepted Answer

Credit

Question 12

A Requisition is:

Accepted Answer

A form requesting the purchase of merchandise.

Question 13

Accounts Payable is a Controlling Account that contains Total amount of the ________.

Accepted Answer

Vendor Accounts

Question 14

A journal amount column headed with an account title.

Accepted Answer

Special Amount Column

Question 15

Cost of Goods sold is on what financial statement?

Accepted Answer

Income Statement

Question 16

Merchandising businesses purchase merchandise for resale and charge sales tax.

Accepted Answer

True

Question 17

A Purchase Order goes in what order is what you give to the boss when you want to buy something an it needs approval.

Accepted Answer

False

Question 18

What is the Contra Account to Purchases used in Ch. 9?

Accepted Answer

Purchases Discount

Question 19

A Requisition is what you give your boss when you want to buy something and it needs approval.

Accepted Answer

True

Question 20

The price after the trade discount has been deducted from the list price.

Accepted Answer

Net Price

Question 21

A purchase invoice is:

Accepted Answer

Used as a source document for recording a purchase on account transaction.

Question 22

What is the account classification of Supplies-Office and Supplies-Store?

Accepted Answer

Asset

Question 23

On an Income Statement, the balance of Purchases Discount is ______ the balance of Purchases.

Accepted Answer

deducted from

Question 24

When your transaction says "Bought Supplies" that always means Supplies is Debited-Increased.

Accepted Answer

True

Question 25

Cash discounts are recorded because they _____ the Invoice amount due.

Accepted Answer

Decrease

Accounting I Ch. 9 Review #1

Questions 25

Accounting I Ch. 9 Review #1

Questions 25