Accounting Chapter 9 Review

The terms of sale 1/10, n/30 means that 1/10 or 10% of the invoice amount may be deducted if paid within 30 days

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

A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand is called

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

The total of accounts in the accounts payable ledger equals the balance of the controlling account, Accounts Payable

Someone working with an account can trace a transaction back to the correct journal by using the

A corporation exists independent of its owners

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

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

An account that reduces a related account on a financial statement

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

The contra account Purchases Discount has a normal debit balance

A merchandising business places Purchases in the Operating Expenses section of the income statement

The periodic inventory method does not require records of the quantity and cost of individual goods

To replenish a $300 petty cash fund, you have receipts totaling $224 and cash on hand of $74. One part of the entry is

Supplies bought for use in a business are recorded in the

A legal document that identifies basic characteristics of a corporation

An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item

A purchase of merchandise for cash would be posted

$1500 of merchandise is purchased on account for $900 on the 1st. 2% discount in first 10 days. Payment made on the 17th