← Chapter 7 Test
5 Written Questions
5 Matching Questions
- Schedule Accounts Payable
- Purchase journal
- Purchase Account
- Retail Businesses
- a A temporary owner's equity account that is used to record the cost of merchandise purchased for resale. Other possible titles include merchandize Purchases of Merchandise.
- b Those who own business such as groery stores, drugstores, and restaurants, which sell directly to consumerss.
- c A listiong of the indicidual creditor balances in the accounts payable ledger.
- d A special journal used only to record credit purchases of merchandise. (Some businesses design a multicolumn puchases journal that is used to record all credit purchases. not just merchandise.
- e Goods held for sale to customers. Also called Stock in Trade.
5 Multiple Choice Questions
- A special journal used for recording all disbursement of cash.
- A written request from a buyer of goods to the seller, listing irems needed and a description of the goods.
- A contra purchases account that is used to record returns and allowances on merchandise purchases.
- A written request for gooods to be purchased. It is usually prepared by a department head or manager and sent to a firm's purchasing department.
- A ledger containing the financial statement accounts.
5 True/False Questions
Invoice → The Price appering in a price catalog issued by the seller.
Subsidiary Ledgers → Ledgers that contain only one type of account; the example in this chapter is the accounts payable ledger.
Cash Discounts → A percentage reduction from the list price of merchandise.
Merchandising Buisness → A buisness that earns it revenue by buying goods and then reselling those goods. Also called a trading buisness.
Freight In Account → An account in the general ledger that summariezes accounts