5 Written questions
5 Matching questions
- Cash Short
- Retained Earnings
- Credit Memorandum
- a A petty cash on hand amount that is less than a recorded amount.
- b goods that a merchandising business purchases to sell.
- c the quantity of goods on hand.
- d form or letter sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account.
- e an amount earned by a corporation and not yet distributed to stockholders.
5 Multiple choice questions
- closing out all the transactions on the system that were processed for a particular day.
- each unit of ownership in a corporation.
- Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable.
- A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account.
- each member of a partnership.
5 True/False questions
Cost of Merchandise → goods that a merchandising business purchases to sell.
Current Assets → Assets that will be used for a number of years in the operation of a business.
Trade Discount → a reduction in the list price granted to customers.
Plant Assets → Assets that will be used for a number of years in the operation of a business.
Sales Allowance → credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable.