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- Download: http://solutionzip.com/downloads/20-mcq-jackson-purchased-500-of-goods-and-received-credit-terms/
- Question 1 of 20 5.0 Points
- Jackson purchased $500 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?
- A. $450
- B. $510
- C. $500
- D. $490
- Question 2 of 20 5.0 Points
- When the term F.O.B. shipping point is used, title passes when the
- A. goods reach the halfway point.
- B. goods reach the destination.
- C. goods are shipped.
- D. buyer unpacks the goods.
- Question 3 of 20 5.0 Points
- A debit memorandum increases which account on the buyer’s books?
- A. Accounts Payable
- B. Purchases Returns and Allowances
- C. Sales Returns and Allowances
- D. Accounts Receivable
- Question 4 of 20 5.0 Points
- Medeco bought goods for $250 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount it should pay?
- A. $250
- B. $204
- C. $196
- D. $200
- Question 5 of 20 5.0 Points
- On April 30, Miller’s Bike Goods purchased $600 of merchandise on account from the Spark Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Spark Company and added to the invoice. The amount to record in the Purchases account is
- A. $650.
- B. $640.
- C. $550.
- D. $450.
- Question 6 of 20 5.0 Points
- To prove that the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a
- A. debit memorandum.
- B. schedule of accounts payable.
- C. purchase order.
- D. schedule of accounts receivable.
- Question 7 of 20 5.0 Points
- The Accounts Payable subsidiary ledger
- A. lists accounts alphabetically.
- B. lists accounts for which the company owes money.
- C. has a controlling account in the general ledger.
- D. All of the above
- Question 8 of 20 5.0 Points
- The normal balance for Purchases Returns and Allowances is
- A. a debit.
- B. a credit.
- C. zero.
- D. It doesn’t have a normal balance.
- Question 9 of 20 5.0 Points
- If merchandise was returned under the periodic inventory method, this will be recorded with a
- A. debit to Accounts Payable and a credit to Purchases Returns and Allowances.
- B. debit to Merchandise Inventory and a credit to Purchases.
- C. credit to Accounts Payable and a debit to Merchandise Inventory.
- D. debit to Accounts Payable and a credit to Merchandise Inventory.
- Question 10 of 20 5.0 Points
- A debit memorandum decreases which account on the seller’s books?
- A. Accounts Payable
- B. Purchases Returns and Allowances
- C. Sales Returns and Allowances
- D. Accounts Receivable
- Question 11 of 20 5.0 Points
- On February 12, Clare purchased $400 of merchandise on account from Larsen’s Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is
- A. $392.
- B. $408.
- C. $400.
- D. $440.
- Question 12 of 20 5.0 Points
- If a display rack was purchased for the store, which account would be increased?
- A. Store Equipment
- B. Purchases
- C. Cash
- D. Capital
- Question 13 of 20 5.0 Points
- Heidi’s Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment (within the discount period) would include a credit to
- A. Cash for $477.
- B. Cash for $468.
- C. Accounts Receivable for $477.
- D. Accounts Receivable for $468.
- Question 14 of 20 5.0 Points
- On November 30, Janoch’s Dog Kennel purchased $600 of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Ganster Company and added to the invoice. The amount to record in the Purchases account is
- A. $600.
- B. $640.
- C. $560.
- D. $550.
- Question 15 of 20 5.0 Points
- When merchandise is bought for resale, which account would be decreased?
- A. Store Equipment
- B. Purchases
- C. Cash
- D. Capital
- Question 16 of 20 5.0 Points
- Hardware Restoration had net purchases of $50,000. If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500, what are gross purchases?
- A. $38,500
- B. $50,000
- C. $61,500
- D. $40,000
- Question 17 of 20 5.0 Points
- The entry to record a purchase of $5,000 on account, terms of 2/10, n/30, would include a
- A. debit to Purchases Discount for $100.
- B. credit to Accounts Payable for $5,000.
- C. debit to Accounts Payable for $5,000.
- D. credit to Cash for $5,000.
- Question 18 of 20 5.0 Points
- A. O.B. shipping point means
- B. the buyer pays for the freight.
- C. the seller pays for the freight.
- D. the title passes at time of shipment.
- E. Both A and C*
- *Note: It looks like the actual question is in choice A and the answers go from B-E. Answer E would be correct if it went from A-D. This would be the probably answer.
- Question 19 of 20 5.0 Points
- Merchandise paid for within the discount period for a Cash refund was returned. This will be recorded with a
- A. credit to a liability.
- B. credit to an asset.
- C. debit to a liability.
- D. debit to an asset.
- Question 20 of 20 5.0 Points
- Purchases are a/an
- A. cost.
- B. asset.
- C. liability.
- D. revenue.
- Download: http://solutionzip.com/downloads/20-mcq-jackson-purchased-500-of-goods-and-received-credit-terms/
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