Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
Which of the following statements is not correct?
A)Cash purchases of merchandise are not recorded in the purchases journal.
B)A credit purchase of equipment for use in the business would be recorded in the purchases journal.
C)The Purchases account has a normal debit balance.
D)The invoice date and credit terms must be carefully recorded in the purchases journal because they determine when payment is due.
2
Which of the following statements is correct?
A)The purchase requisition is the form sent to a supplier to order goods.
B)The Purchases account is reported as an asset on the balance sheet.
C)To the customer, a supplier's invoice is a purchase invoice.
D)The terms 2/10, n/30, mean a 2% discount is available if the invoice is paid within 10 days but that, in any case, the full amount due must be paid within 30 days.
3
After a supplier of merchandise is selected, the purchasing department issues a form called
A)a purchase invoice.
B)a purchase order.
C)a sale invoice.
D)a purchase requisition.
4
The entry to record a purchase of merchandise on credit includes
A)a debit to Purchases and a credit to Accounts Receivable.
B)a credit to Purchases and a credit to Accounts Payable.
C)a debit to Accounts Payable and a credit to Purchases.
D)a debit to Purchases and a credit to Accounts Payable.
5
Freight charges on merchandise purchases should be debited to
A)the Purchases account.
B)the Accounts Payable account.
C)the Freight In account.
D)the creditor's account in the subsidiary ledger.
6
The Purchases account is
A)a permanent account.
B)a temporary account.
C)a subsidiary account.
D)a liability account.
7
Purchases of merchandise on credit should be recorded in
A)the purchases journal.
B)the general journal.
C)the cash payments journal.
D)the sales journal.
8
The source document for recording a purchase of merchandise on credit is
A)the purchase order.
B)the purchase invoice.
C)the receiving report.
D)the purchase requisition.
9
Credit purchases of supplies that are to be used in the business are entered in
A)the purchases journal.
B)the general journal.
C)the cash payments journal.
D)the cash receipts journal.
10
When the sales department needs goods, it sends the purchasing department a form called
A)a purchase invoice.
B)a purchase order.
C)a purchase requisition.
D)a sales invoice.





To learn more about the book this website supports, please visit its Information Center.
(c)2007 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Price 11/eOnline Learning Center

Home > Chapter 8 > Multiple Choice Quiz