Chapter 14-17

Question 0

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

Answer 0

Operating cycle

Question 1

Sale recorded on account, what is Debit?

Answer 1

Debit Accounts receivable

Question 2

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

Answer 2

A debit in the merchandise inventory

Question 3

Goods bought for resale

Answer 3

Merchandise

Question 4

Items of merchandise a business has in stock

Answer 4

Inventory

Question 5

Normal balance of sales account is

Answer 5

Credit

Question 6

A business that sells to the consumer is a..

Answer 6

Retailer

Question 7

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

Answer 7

Term

Question 8

Journal entry for a cash refund is…

Answer 8

Debit sales return and allowances, credit cash in bank

Question 9

Sales tax is recorded as a

Answer 9

Credit to sales tax expense

Question 10

The form that lists the details of a sale is called

Answer 10

A sales slip

Question 11

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

Answer 11

Sales allowance

Question 12

Charge customers balances are recorded in a ledger called

Answer 12

Accounts receivable

Question 13

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

Answer 13

Subsidiary ledger

Question 14

To make a purchase, charge customers may use…

Answer 14

A credit card

Question 15

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

Answer 15

Sales return

Question 16

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

Answer 16

Sale on account

Question 17

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

Answer 17

Cash receipt

Question 18

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

Answer 18

Sales tax

Question 19

When a customer pays on account, the accounts affected are

Answer 19

Cash in bank and accounts receivable

Question 20

Visa, MasterCard, and discover are known as

Answer 20

Bank cards

Question 21

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

Answer 21

Cash sale

Question 22

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

Answer 22

Cash and office furniture

Question 23

The accounts affected in a bank card sale are

Answer 23

Cash, sales and sales tax payable

Question 24

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

Answer 24

Sales discount

Question 25

A merchandise discount is calculated by

Answer 25

Multiplying the amount of the sale by the discount rate

Question 26

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

Answer 26

Purchases discount

Question 27

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

Answer 27

Purchases account

Question 28

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

Answer 28

Purchase requisition

Question 29

The journal entry for recording purchases of merchandise for cash is

Answer 29

Debit purchases

Credit cash

Question 30

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

Answer 30

Purchase order

Question 31

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

Answer 31

Packing slip

Question 32

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

Answer 32

A processing stamp

Question 33

A discount on merchandise purchased is calculated by

Answer 33

Multiplying the purchase amount by the discount rate

Question 34

To record a purchase return the accounting affected would be

Answer 34

Account payable, accounts payable subsidiary, purchase returns and allowances

Question 35

The journal entry for the purchase of merchandise on account is

Answer 35

Debit purchases

Credit accounts payable

Question 36

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

Answer 36

A debit memorandum

Question 37

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

Answer 37

Purchase allowance

Question 38

The date an invoice is to be paid is called its

Answer 38

Due date

Question 39

The purchase of insurance is recorded in

Answer 39

Prepaid insurance

Question 40

Bank card fee is

Answer 40

An expense account

Question 41

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

Answer 41

FOB destination

Question 42

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

Answer 42

Debit transportation in

Credit cash

Question 43

The cost of insurance protection is called

Answer 43

A premium

Question 44

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

Answer 44

$1000

Question 45

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

Answer 45

Cash in bank debit column

Question 46

For each line of the cash receipts journal

Answer 46

The debit and credit entries should be equal

Question 47

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

Answer 47

General credit column

Question 48

Every transaction recorded in the cash receipts journal requires a

Answer 48

Debit to the cash in bank account

Question 49

Entries to the general debit column are posted

Answer 49

Daily

Question 50

Each transaction in the cash payments journal affects

Answer 50

Cash in bank