Question 1

If merchandise is bought with a list price of $3,500, subject to a 25 percent trade discount and a cash discount of 2/10, n/30, the amount credited to Accounts Payable is $2,625.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accounts normally has a debit balance?

Accepted Answer

A)  Sales
B)  Sales Discounts
C)  Sales Tax Payable
D)  Sales and Sales Tax Payable
E)  Sales Discounts and Sales Tax PayableF) A) and E)
G) B) and D)

Question 3

Match the terms below with the correct definitions.
 
-Reduction from the invoice price for prompt payment as recorded on the books of the buyer

Accepted Answer

The answer of Match the terms below with the correct...

Question 4

Individual amounts in the Accounts Receivable Credit column of a cash receipts journal are

Accepted Answer

A)  posted monthly to the accounts receivable ledger.
B)  posted monthly to the general ledger.
C)  posted daily to the accounts receivable ledger.
D)  posted daily to the general ledger.
E)  not posted.F) B) and D)
G) C) and E)

Question 5

Column titles for a cash receipts journal may be

Accepted Answer

A)  Cash Debit, Sales Discounts Debit, Sales Credit, Accounts Receivable Credit, and Other Accounts Debit.
B)  Cash Debit, Sales Discounts Debit, Sales Credit, Accounts Receivable Credit, and Other Accounts Credit.
C)  Cash Debit, Sales Discounts Credit, Sales Credit, Accounts Receivable Debit, and Other Accounts Credit.
D)  Cash Debit, Sales Discounts Debit, Sales Debit, Accounts Receivable Credit, and Other Accounts Credit.
E)  Cash Credit, Accounts Receivable Credit, and Other Accounts Debit.F) B) and E)
G) All of the above

Question 6

Match the terms below with the correct definitions.
 
-Large reduction from the list price that is not recorded on the books of the buyer

Accepted Answer

The answer of Match the terms below with the correct...

Question 7

The following transactions were completed by Fox and Company during the second half of December for the current year. Terms of sale are 2/10, n/30 using a periodic inventory system.
  Instructions:

Accepted Answer

The answer of The following transactions were completed by Fox...

Question 8

On October 30, goods with a list price of $9,200 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on December 11. The amount of cash received on December 11 is

Accepted Answer

A)  $6,160.
B)  $8,770.
C)  $2,640.
D)  $6,036.
E)  $6,900.F) All of the above
G) A) and B)

Question 9

The Sales Discounts account is recorded on the books of the seller.

Accepted Answer

A) True 
 B)False

Question 10

The entry to purchase a one-year insurance policy for cash would be recorded in the cash payments journal in the

Accepted Answer

A)  Cash Debit column and the Accounts Payable Debit column.
B)  Other Accounts Debit column and the Cash Credit column.
C)  Accounts Payable Debit column and the Cash Credit column.
D)  Cash Debit column and the Other Accounts Credit column.
E)  Accounts Payable Debit column and the Other Accounts Credit column.F) C) and E)
G) A) and B)

Question 11

Baylor Company purchased merchandise on account, $3,000, with terms 2/10, n/30. The entry required of Baylor Company to record the transaction in the cash payments journal, assuming payment is made within the discount period, is

Accepted Answer

A)  debit Accounts Payable, $3,000; credit Sales Discounts, $60; credit Cash, $2,940.
B)  debit Accounts Payable, $2,940; credit Cash, $2,940.
C)  debit Accounts Payable, $3,000; credit Cash, $3,000.
D)  debit Accounts Payable, $3,000; credit Purchases Discounts, $60, credit Cash, $2,940.
E)  credit Accounts Payable, $3,000; credit Cash $3,000.F) A) and B)
G) C) and D)

Question 12

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash payments journal.

Accepted Answer

The answer of Indicate the appropriate columns in which each...

Question 13

Match the terms below with the correct definitions.
 
-The time period within which the buyer should pay for his or her charge purchase

Accepted Answer

I

Question 14

Stryker Company issued a check for June rent in the amount of $650. In what journal would this transaction be recorded.

Accepted Answer

A)  Sales Journal
B)  Cash Payment Journal
C)  Cash Receipt Journal
D)  General JournalE) B) and D)
F) B) and C)

Question 15

An (X) below a column means the total is not to be posted.

Accepted Answer

A) True 
 B)False

Question 16

When a general journal and four special journals are in use, the entries in the Cash account will generally be posted from

Accepted Answer

A)  two special journals and the general journal.
B)  only two of the four special journals.
C)  all the books of original entry.
D)  only three of the four special journals.
E)  only the general journal.F) A) and B)
G) All of the above

Question 17

If merchandise bought on account has a list price of $5,000, with a trade discount of 25% and credit terms of 1/10, n/30, what is the amount to be credited to Accounts Payable?

Accepted Answer

A)  $5,000
B)  $3,750
C)  $3,712.50
D)  $3,787.50E) A) and D)
F) B) and C)

Question 18

Match the terms below with the correct definitions.
 
-Reduction from the invoice price for prompt payment

Accepted Answer

The answer of Match the terms below with the correct...

Question 19

Which of the following statements is true about a purchase made with the credit terms of 2/10, n/30?

Accepted Answer

A)  If a company does not make payment within 10 days, the discount will not apply.
B)  If the company makes a payment within 30 days, a 2% discount will apply.
C)  If a company makes a payment between 10 and 30 days, a 2% discount applies.
D)  None of these statements are true.E) B) and C)
F) C) and D)

Question 20

A withdrawal of cash by the owner for personal use is recorded in the purchases journal.

Accepted Answer

A) True 
 B)False  False

Exam 10: Cash Receipts and Cash Payments

If merchandise is bought with a list price of $3,500, subject to a 25 percent trade discount and a cash discount of 2/10, n/30, the amount credited to Accounts Payable is $2,625.

Correct AnswerverifiedShow Answer

Which of the following accounts normally has a debit balance?

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Reduction from the invoice price for prompt payment as recorded on the books of the buyer

Correct AnswerverifiedShow Answer

Individual amounts in the Accounts Receivable Credit column of a cash receipts journal are

Correct AnswerverifiedShow Answer

Column titles for a cash receipts journal may be

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Large reduction from the list price that is not recorded on the books of the buyer

Correct AnswerverifiedShow Answer

The following transactions were completed by Fox and Company during the second half of December for the current year. Terms of sale are 2/10, n/30 using a periodic inventory system. Instructions:

Correct AnswerverifiedShow Answer

On October 30, goods with a list price of $9,200 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on December 11. The amount of cash received on December 11 is

Correct AnswerverifiedShow Answer

The Sales Discounts account is recorded on the books of the seller.

Correct AnswerverifiedShow Answer

The entry to purchase a one-year insurance policy for cash would be recorded in the cash payments journal in the

Correct AnswerverifiedShow Answer

Baylor Company purchased merchandise on account, $3,000, with terms 2/10, n/30. The entry required of Baylor Company to record the transaction in the cash payments journal, assuming payment is made within the discount period, is

Correct AnswerverifiedShow Answer

Indicate the appropriate columns in which each of the following transactions would be recorded in the cash payments journal.

Correct Answerverified11eaaaf0_63c2_4391_a4b8_03e72cf9fa9a_TB5749_00

Match the terms below with the correct definitions. -The time period within which the buyer should pay for his or her charge purchase

Correct AnswerverifiedI

Stryker Company issued a check for June rent in the amount of $650. In what journal would this transaction be recorded.

Correct AnswerverifiedShow Answer

An (X) below a column means the total is not to be posted.

Correct AnswerverifiedShow Answer

When a general journal and four special journals are in use, the entries in the Cash account will generally be posted from

Correct AnswerverifiedShow Answer

If merchandise bought on account has a list price of $5,000, with a trade discount of 25% and credit terms of 1/10, n/30, what is the amount to be credited to Accounts Payable?

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Reduction from the invoice price for prompt payment

Correct AnswerverifiedShow Answer

Which of the following statements is true about a purchase made with the credit terms of 2/10, n/30?

Correct AnswerverifiedShow Answer

A withdrawal of cash by the owner for personal use is recorded in the purchases journal.

Correct AnswerverifiedFalse

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