Details of this Paper

Accounting Basics: Lesson 12: MCQ

Description

solution


Question

Question 1 of 20;5.0 Points;Jackson purchased $500 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?;A. $450;B. $510;C. $500;D. $490;Question 2 of 20;5.0 Points;When the term F.O.B. shipping point is used, title passes when the;A. goods reach the halfway point.;B. goods reach the destination.;C. goods are shipped.;D. buyer unpacks the goods.;Question 3 of 20;5.0 Points;A debit memorandum increases which account on the buyer?s books?;A. Accounts Payable;B. Purchases Returns and Allowances;C. Sales Returns and Allowances;D. Accounts Receivable;Question 4 of 20;5.0 Points;Medeco bought goods for $250 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount it should pay?;A. $250;B. $204;C. $196;D. $200;Question 5 of 20;5.0 Points;On April 30, Miller?s Bike Goods purchased $600 of merchandise on account from the Spark Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Spark Company and added to the invoice. The amount to record in the Purchases account is;A. $650.;B. $640.;C. $550.;D. $450.;Question 6 of 20;5.0 Points;To prove that the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a;A. debit memorandum.;B. schedule of accounts payable.;C. purchase order.;D. schedule of accounts receivable.;Question 7 of 20;5.0 Points;The Accounts Payable subsidiary ledger;A. lists accounts alphabetically.;B. lists accounts for which the company owes money.;C. has a controlling account in the general ledger.;D. All of the above;Question 8 of 20;5.0 Points;The normal balance for Purchases Returns and Allowances is;A. a debit.;B. a credit.;C. zero.;D. It doesn?t have a normal balance.;Question 9 of 20;5.0 Points;If merchandise was returned under the periodic inventory method, this will be recorded with a;A. debit to Accounts Payable and a credit to Purchases Returns and Allowances.;B. debit to Merchandise Inventory and a credit to Purchases.;C. credit to Accounts Payable and a debit to Merchandise Inventory.;D. debit to Accounts Payable and a credit to Merchandise Inventory.;Question 10 of 20;5.0 Points;A debit memorandum decreases which account on the seller?s books?;A. Accounts Payable;B. Purchases Returns and Allowances;C. Sales Returns and Allowances;D. Accounts Receivable;Question 11 of 20;5.0 Points;On February 12, Clare purchased $400 of merchandise on account from Larsen?s Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is;A. $392.;B. $408.;C. $400.;D. $440.;Question 12 of 20;5.0 Points;If a display rack was purchased for the store, which account would be increased?;A. Store Equipment;B. Purchases;C. Cash;D. Capital;Question 13 of 20;5.0 Points;Heidi?s Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment (within the discount period) would include a credit to;A. Cash for $477.;B. Cash for $468.;C. Accounts Receivable for $477.;D. Accounts Receivable for $468.;Question 14 of 20;5.0 Points;On November 30, Janoch?s Dog Kennel purchased $600 of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Ganster Company and added to the invoice. The amount to record in the Purchases account is;A. $600.;B. $640.;C. $560.;D. $550.;Question 15 of 20;5.0 Points;When merchandise is bought for resale, which account would be decreased?;A. Store Equipment;B. Purchases;C. Cash;D. Capital;Question 16 of 20;5.0 Points;Hardware Restoration had net purchases of $50,000. If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500, what are gross purchases?;A. $38,500;B. $50,000;C. $61,500;D. $40,000;Question 17 of 20;5.0 Points;The entry to record a purchase of $5,000 on account, terms of 2/10, n/30, would include a

 

Paper#79068 | Written in 18-Jul-2015

Price : $22
SiteLock