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- 1. Multiple ChoiceA petty cash on hand amount that is more than a recorded amount.Cash ShortCash OverPetty Cash ReportBonus
- 2. Multiple ChoiceAn account that reduces a related account on a financial statement.Special JournalCash Payments JournalPurchases JournalContra Account
- 3. Multiple ChoiceA reduction in the list price granted to customers.Invoice discountTerms of SalePurchases DiscountTrade Discount
- 4. Multiple ChoiceA cash discount on purchases taken by a customer.Trade discountTerms of salePurchase discountPurchases Return
- 5. Multiple ChoiceA journal used to record only one kind of transaction.Cash Payments JournalSpecial JournalPurchases journalContra Account
- 6. Multiple ChoiceThe cost a business pays for goods it purchases to sell.MarkupList priceRetail priceCost of merchandise
- 7. Multiple ChoiceA petty cash on hand amount that is less than a recorded amount.Cash shortCash overCash discountPetty cash overage
- 8. Multiple ChoiceThe amount added to the cost of merchandise to establish the selling price.Retail PriceMarkdownMarkupCost of Merchandise
- 9. Multiple ChoiceA journal amount column that is not headed with an account title.General Amount ColumnCash Payments JournalSpecial Amount ColumnPurchases Journal
- 10. Multiple ChoiceThe retail price listed in a catalog or on an Internet site.retail pricewholesale pricelist priceterms of sale
- 11. Multiple ChoiceA business from which merchandise is purchased or supplies or other assets are bought.VendorRetail merchandising businesswholesale merchandising businessCustomer
- 12. Multiple ChoiceCredit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable.Purchase discountsCash discountsPurchase returnsTrade discounts
- 13. Multiple ChoiceAn organization with the legal rights of a person and which many persons may own.ProprietorshipPartnershipCorporationFranchise
- 14. Multiple ChoiceA form prepared by the customer showing the price deduction taken by the customer for returns and allowances.Special JournalCash PaymentPurchase InvoiceDebit Memorandum
- 15. Multiple ChoiceGoods that a business purchases to sell.merchandiseretail merchandisingServiceswholesale merchandise
- 16. Multiple Choice
A deduction that a vendor allows on the invoice amount to encourage prompt payment.
Trade discount
Cash discount
Purchases Allowance
Purchase Discount
- 17. Multiple ChoiceAn owner of one or more shares in a corporation.StockRetail MerchandiserStockholderDividends
- 18. Multiple ChoiceA special journal used to record only cash payments.General JournalPurchases JournalCash PaymentsAccounts Payable Journal
- 19. Multiple ChoiceTotal shares of ownership in a corporation.Capital StockShare of StockBoard of DirectorsDividends
- 20. Multiple ChoiceA transaction in which the merchandise purchased is to be paid for later.Debit MemorandumPurchase on AccountPurchases ReturnPurchases Allowance
- 21. Multiple ChoiceA special journal used to record only purchases of merchandise on account.Cash Payments JournalAccounts Payable journalPurchases journalGeneral Journal
- 22. Multiple ChoicePurchases returns and allowancesincrease the amount of purchases.decreases the amount of purchases.do not affect the amount of purchases.affect the cash flow.
- 23. Multiple ChoiceIf merchandise is purchased for $1,000 on August 1, with terms of sale of 2/10, n/30 the amount due to the vendor on August 9 is$1,000$990.00$980.00$20.00
- 24. Multiple ChoiceThe source document for a cash purchase isa memoranduman invoicea receipta check
- 25. Multiple ChoiceMerchandise with a list price of $1,500 is purchased on account for $900 on August 1. Terms of sale are 2/10, n/30. Payment is made on August 17. The amount paid should be$1,500$900$600$882
- 26. Multiple ChoiceSince contra accounts are offsets to their related accounts, contra accounts normal balances aredebitscreditsopposite the normal balance of their related accountsthe same as the normal balances of their related accounts.
- 27. Multiple Choiceto replenish a $300 petty cash fund, if the petty cash custodian had receipts totaling $224 and cash of $74 in the petty cash box, one part of the journal entry is adebit to cash short and over for $2Credit to cash for $224Debit to Petty Cash for $224Credit to cash short and over for $2
- 28. Multiple ChoiceSupplies bought for use in a business are recorded in thesupplies expense accountpurchases accountssupplies accountcash account
- 29. Multiple ChoiceThe amount added to the cost of merchandise to establish the selling price iscosts of goods soldcost of merchandisemarkupcost of sales
- 30. Multiple ChoiceAn agreement between a buyer and a seller about payment for merchandise is the _______________.Purchase invoicecorrecting entrySales invoiceterms of sale
- Answer choicesTagsAnswer choicesTags