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| 1 | |
An accounts receivable subsidiary ledger would be associated with which of the following journals? |
| | A) | Depreciation journal |
| | B) | Sales journal |
| | C) | Cash receipts journal |
| | D) | Purchases journal |
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| 2 | |
In a sales journal only one amount is recorded but that amount is posted by |
| | A) | Debiting cost of goods sold and crediting inventory |
| | B) | Debiting accounts receivable and crediting sales |
| | C) | Debiting cash and crediting sales |
| | D) | Debiting accounts receivable and crediting cash |
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| 3 | |
To identify the individuals and the amount they owe the company is the purpose of which of the following? |
| | A) | Sales Journal |
| | B) | Purchases Journal |
| | C) | Accounts Receivable Subsidiary Ledger |
| | D) | Accounts Payable Subsidiary Ledger |
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| 4 | |
The total of the accounts payable subsidiary ledger is equal to the balance in the accounts payable account in the general ledger: |
| | A) | At all times. |
| | B) | Only at the end of specified time periods. |
| | C) | Never |
| | D) | At random times during the year. |
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| 5 | |
Which of the following entries would not be associated with the use of a perpetual inventory system? |
| | A) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q5_opta.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]> |
| | B) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q5_optb.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]> |
| | C) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q5_optc.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (7.0K)</a>]]> |
| | D) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q5_optd.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]> |
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| 6 | |
Which of the following entries reflects the use of a perpetual inventory system? |
| | A) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q6_opta.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]> |
| | B) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q6_optb.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (8.0K)</a>]]> |
| | C) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q6_optc.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (8.0K)</a>]]> |
| | D) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q6_optd.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]> |
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| 7 | |
The gross method records the purchase discount. |
| | A) | When it is taken |
| | B) | When the inventory is purchased |
| | C) | When the inventory is sold |
| | D) | When the inventory is returned |
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| 8 | |
If a company uses the perpetual and net price inventory methods and it purchases inventory on account worth $6,000 with terms 1/10 n/30 what will be the cost of the inventory when the inventory is purchased? |
| | A) | $6,000 |
| | B) | $5,940 |
| | C) | $5,400 |
| | D) | $6,600 |
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| 9 | |
Which of the following is true about the purchase discount lost account? |
| | A) | It is used with the gross method and the periodic system and the terms of the discount are not met. |
| | B) | It is used when the net method is used with the perpetual system and the terms of the discount are met. |
| | C) | It is used when the gross method is used with the periodic system and the terms of the discount are not met. |
| | D) | It is used when the net method is applied to either the periodic or perpetual systems and the terms of the discount are not met. |
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| 10 | |
Which of the following entries is made when a discount is taken and the perpetual system uses the net method. |
| | A) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q10_opta.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (7.0K)</a>]]> |
| | B) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q10_optb.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (8.0K)</a>]]> |
| | C) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q10_optc.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (7.0K)</a>]]> |
| | D) |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078136601/794877/chapter8_q10_optd.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]> |
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| 11 | |
Which of the following is not deducted from gross pay to determine net pay? |
| | A) | FICA |
| | B) | Federal Income Taxes |
| | C) | Charitable Contributions |
| | D) | Unemployment Taxes |
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| 12 | |
Peeves Party Supply purchased $4,000 of merchandise on account, terms 2/15, n/30. Assuming Peeves uses the net price method to account for purchase discounts, the journal entry to record the purchase would include a: |
| | A) | debit to Inventory for $4,000 |
| | B) | credit to Accounts Payable for $3,920 |
| | C) | credit to Cash for $3,920 |
| | D) | credit to Purchase Discounts for $80 |
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| 13 | |
Markson & Pettyjohn (M&P) purchased $8,000 of merchandise on account for resale purposes. M&P plans to sell the merchandise for $14,000. If M&P returned $3,000 of merchandise for credit, the journal entry to record the return using the perpetual inventory system and the gross price method would include a: |
| | A) | credit to Accounts Payable for $3,000 |
| | B) | credit to Inventory for $3,000 |
| | C) | debit to Sales for $2,000 |
| | D) | debit to Cash for $3,000 |
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| 14 | |
Filipi Inc. reported wages expense of $617,000, wages payable of $132,000 at the beginning of the year, and wages payable of $91,700 at the end of the year. Cash payments for wages during the year were: |
| | A) | $617,000 |
| | B) | $393,300 |
| | C) | $576,700 |
| | D) | $657,300 |
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| 15 | |
Old Navy reported cost of goods sold of $1,065,000, beginning and ending inventory of $288,700 and $130,400, respectively, and beginning and ending accounts payable of $148,200 and $71,600, respectively. Cash payments for merchandise inventory during the year were: |
| | A) | $906,700 |
| | B) | $983,300 |
| | C) | $1,299,900 |
| | D) | $830,100 |
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