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Intro to Accounting multiple choice questions.

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10 Intro to Accounting multiple choice questions.;16. The collection on account within the 1/10 n/30 discount period was recorded using a 10%;discount rather than a 1% discount in both the controlling and subsidiary accounts. This error;will cause the;a. net income for the period to be understated;b. net income for the period to be overstated;c. control account to not agree with the subsidiary ledger;d. assets to be overstated;17. A checkmark in the PR column in the general journal means the;a. entry was recorded correctly;b. amount was posted to the controlling account;c. mount was recorded in the subsidiary ledger;d. entry was audited;18. Net purchases are;a. Purchases + Purchases Returns and Allowances;b. Purchases - Purchases Discount - Purchases Returns and Allowances;c. Purchases - Freight - Purchases Returns and Allowances;d. Purchases + Freight-in;19. If a display rack was purchased for the store, which of the following accounts would be;increased?;a. Store Equipment;b. Purchases;c. Cash;d. Capital;20. A purchase discount was recorded as a credit to the Purchases account and a debit to;Accounts Payable. This error will cause;a. net income to be overstated;b. net income to be understated;c. net income to not be affected;d. total assets to be overstated;21. Office Supplies (not used for resale) bought on account were returned for credit and recorded;with a debit to Accounts Payable and a credit to Purchase Returns and Allowances. This error;will cause;a. net income to be overstated;b. net income to be understated;c. net income to not be affected;d. total assets to be understated;22. Returned merchandise paid for within the discount period for cash. The perpetual inventory;system is in use. This will be recorded with a debit to a(n);a. liability and a credit to an asset;b. asset and a credit to an asset;c. expense and a credit to a liability;d. expense and a credit to an asset;23. If the company uses special journals, all payments should be recorded on a;a. cash receipts journal;b. cash payments journal;c. purchases journal;d. sales journal;24. A characteristic of purchases is;a. it has a debit normal balance;b. it reduces net income;c. that it is used to record the purchase of merchandise to be resold;d. All of the above.;25. Which of the following transactions will cause one asset to be debited and another to be;credited when the periodic inventory system is in use?;a. purchased merchandise on account;b. purchased merchandise for cash;c. purchased office supplies for cash;d. purchased office supplies on account;Attachment Preview;Accounting Unit 3.docx;16. The collection on account within the 1/10 n/30 discount period was recorded using a 10%;discount rather than a 1% discount in both the controlling and subsidiary accounts. This...

 

Paper#20859 | Written in 18-Jul-2015

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