Details of this Paper

The account used to record the purchase of goods...

Description

Solution


Question

The account used to record the purchase of goods is: A) Purchase Returns and Allowances. B) Purchase Discounts. C) Accounts Payable. D) Purchases. Am pretty sure it is C On March 30, Bailey?s Dog Bakery purchased $1,000 of merchandise on account from the Williams Company. The goods were shipped F.O.B. shipping point. The freight charge of $80 was paid by Williams Company and added to the invoice. The amount to record in the Accounts Payable account is: A) $l,080. B) $l,070. C) $1,000. D) $990. I think A The entry to record a payment on a $900 account within the 1% discount period would include a: A) credit to Purchases for $909. B) debit to Cash for $891. C) debit to Accounts Payable for $891. D) debit to Accounts Payable for $900. A purchase discount was recorded as a credit to the Purchases account - the remainder was correctly recorded. This error will cause: A) net income will be understated. B) net income will be overstated. C) total assets will be overstated. D) None of these are correct. Unit 4 Examination The freight paid on equipment purchased F.O.B. shipping point was debited to the Freight-In account. This error will cause: A) net income will be understated. B) net income will be overstated. C) total assets will be overstated. D) None of these are correct. A purchase discount that was earned and taken was never recorded. This error will cause: A) total assets will be overstated. B) net income will be understated. C) net income will be overstated. D) None of these are correct. Returned merchandise paid for within the discount period for a cash refund. This will be recorded with: A) a credit to an asset. B) a debit to a liability. C) a credit to a liability. D) a debit to an asset. Returned merchandise for credit. The perpetual inventory system is in use. This will: A) decrease a liability and decrease an asset. B) increase a liability and increase an asset. C) increase an expense and increase a liability. D) decrease an expense and decrease a liability Under the perpetual system, the purchase of merchandise is recorded by a(n): A) increase to Cost of Goods Sold; increase to Accounts Payable. B) decrease to Accounts Payable; decrease to Purchases. C) increase to Purchases; increase to Accounts Payable. D) increase to Merchandise Inventory; increase to Accounts Payable. Unit 4 Examination The inventory method that matches old costs with current selling prices is: A) specific invoice. B) FIFO. C) weighted-average. D) LIFO. I believe C If the ending inventory is overstated, A) gross profi t is overstated. B) cost of goods sold is overstated. C) gross profi t is understated. D) None of these answers are correct. A business is using LIFO when FIFO should have been used during an infl ationary period. This error would cause: A) the period?s net income to be overstated. B) the period end assets to be understated. C) the period end assets to be overstated. D) None of these are correct. Greetings Online disposed of a van that cost $22,000 with accumulated depreciation o $15,000. The journal entry would be to: A) debit Accumulated Depreciation $15,000; debit Depreciation Expense $7,000; credit Van $22,000. B) debit Loss Disposal of Plant Asset $7,000; debit Accumulated Depreciation $15,000; credit Van $22,000. C) debit Accumulated Depreciation $15,000; credit Van $15,000. D) None of these answers are correct. When calculating declining balance depreciation, the straight-line rate was used instead of double the straight-line rate. In the fi rst year of ownership, this error would cause: A) the period?s net income will be understated. B) the period end assets will be understated. C) the period?s net income will be overstated. D) None of these are correct.

 

Paper#9648 | Written in 18-Jul-2015

Price : $25
SiteLock