U1 AOS 2 Subsidiary Records (Accounts Payable)

Question 1

What is an accounts payable schedule?

Answer 1

An accounts payable schedule is a list that outlines the amounts owed to suppliers and the due dates for those payments.

Question 2

True or False: The accounts payable schedule is used to track cash inflows.

Answer 2

False

Question 3

Fill in the blank: The accounts payable schedule helps businesses manage their ________ effectively.

Answer 3

liabilities

Question 4

Which of the following is NOT typically included in an accounts payable schedule? A) Supplier’s name, B) Payment due date, C) Sales revenue, D) Amount owed.

Answer 4

C) Sales revenue

Question 5

What is the primary purpose of maintaining an accounts payable schedule?

Answer 5

The primary purpose is to ensure timely payments to suppliers and to manage cash flow effectively.

Question 6

What is the primary purpose of a Purchases Journal?

Answer 6

To record all credit purchases of goods and services.

Question 7

True or False: A Cash Payments Journal is used to record all cash payments made by a business.

Answer 7

True

Question 8

Fill in the blank: The Purchases Journal typically includes columns for date, details, ________, and amount.

Answer 8

invoice number

Question 9

Which of the following is NOT typically recorded in a Cash Payments Journal? A) Cash purchases B) Credit purchases C) Cash disbursements

Answer 9

B) Credit purchases

Question 10

What are subsidiary records in the context of credit purchases?

Answer 10

Subsidiary records are detailed accounts that support the general ledger by providing information on specific transactions related to credit purchases.

Question 11

True or False: Subsidiary records are used to track individual customer balances for credit purchases.

Answer 11

True

Question 12

Fill in the blank: The primary purpose of subsidiary records for credit purchases is to provide __________ for financial reporting.

Answer 12

detailed transaction data

Question 13

Which of the following is typically included in a subsidiary record for credit purchases? A) Total sales B) Individual customer accounts C) Inventory levels D) Fixed assets

Answer 13

B) Individual customer accounts

Question 14

What is one benefit of maintaining subsidiary records for credit purchases?

Answer 14

They allow for easier tracking of customer credit limits and payment histories.