Chapter 14-17 Flashcards

0
Q

A merchandising business produces revenue through a series of transactions called the…

A

Operating cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Sale recorded on account, what is Debit?

A

Debit Accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

At the beginning of the accounting period,The dollar amount of merchandise in stock is indicated by..

A

A debit in the merchandise inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Goods bought for resale

A

Merchandise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Items of merchandise a business has in stock

A

Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Normal balance of sales account is

A

Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A business that sells to the consumer is a..

A

Retailer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The time allowed for payment to be made on a credit sale is called its

A

Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Journal entry for a cash refund is…

A

Debit sales return and allowances, credit cash in bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Sales tax is recorded as a

A

Credit to sales tax expense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The form that lists the details of a sale is called

A

A sales slip

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A price reduction granted for damaged good kept by the customer is called a

A

Sales allowance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Charge customers balances are recorded in a ledger called

A

Accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A book that contains detailed data summarized to a controlling accounting in the general ledger is called a

A

Subsidiary ledger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

To make a purchase, charge customers may use…

A

A credit card

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Any merchandise returned for credit or a cash refund is called a…

A

Sales return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The sale of merchandise that will be paid for at a later date is called a

A

Sale on account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

A transaction in which money comes in to a business is referred to as a

A

Cash receipt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A levy imposed by most states on the retail sales price of goods and services is a

A

Sales tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When a customer pays on account, the accounts affected are

A

Cash in bank and accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Visa, MasterCard, and discover are known as

A

Bank cards

21
Q

When a business receives full payment for the merchandise at the time of the sale, it is called a

A

Cash sale

22
Q

If a company sold for cash a file cabinet it was no longer using the accounts affected would be

A

Cash and office furniture

23
Q

The accounts affected in a bank card sale are

A

Cash, sales and sales tax payable

24
Q

The amount a customer can deficit from the amount owned for purchased merchandise if payment is made within a specified time is called a

A

Sales discount

25
Q

A merchandise discount is calculated by

A

Multiplying the amount of the sale by the discount rate

26
Q

An offer to charge customers to reduce their sale for early payment is called a

A

Purchases discount

27
Q

The account used to record the cost of merchandise purchased during the fiscal period is the

A

Purchases account

28
Q

A written request that a certain item be purchased is called a

A

Purchase requisition

29
Q

The journal entry for recording purchases of merchandise for cash is

A

Debit purchases

Credit cash

30
Q

A written offer to a supplier to buy certain items is called a

A

Purchase order

31
Q

A form that liars the items included in shipment is called a

A

Packing slip

32
Q

Information placed on a invoice that outlines a set of steps to be followed in preparing the invoice for payment is

A

A processing stamp

33
Q

A discount on merchandise purchased is calculated by

A

Multiplying the purchase amount by the discount rate

34
Q

To record a purchase return the accounting affected would be

A

Account payable, accounts payable subsidiary, purchase returns and allowances

35
Q

The journal entry for the purchase of merchandise on account is

A

Debit purchases

Credit accounts payable

36
Q

A notice to suppliers of a return or to request an allowance is called

A

A debit memorandum

37
Q

When a business keeps less than satisfactory merchandise and pays a reduced price it is called a

A

Purchase allowance

38
Q

The date an invoice is to be paid is called its

A

Due date

39
Q

The purchase of insurance is recorded in

A

Prepaid insurance

40
Q

Bank card fee is

A

An expense account

41
Q

When the supplier pays the shipping cost to the buyers destination or location it is called

A

FOB destination

42
Q

To record the cash payment of a shipping charge, the journal entry is

A

Debit transportation in

Credit cash

43
Q

The cost of insurance protection is called

A

A premium

44
Q

If a charge customer owes $1000 and is given a 2% cash discount of $20, the amount to be recorded in the accounts receivable credit column of the cash receipts journal is

A

$1000

45
Q

The amount of cash actually received in a transaction is recorded on the cash receipts journal in the

A

Cash in bank debit column

46
Q

For each line of the cash receipts journal

A

The debit and credit entries should be equal

47
Q

When recording cash receipts, accounts for which there is no special column are recorded in the

A

General credit column

48
Q

Every transaction recorded in the cash receipts journal requires a

A

Debit to the cash in bank account

49
Q

Entries to the general debit column are posted

A

Daily

50
Q

Each transaction in the cash payments journal affects

A

Cash in bank