ACC 1 Chapter 9 Test Review

Front

A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount.

Back

False

Front

Is the petty cash account Cash Short and Over a temporary account?

Back

True

Front

A corporation can own property, incur liabilities, and enter into contracts in its own name.

Back

True

Front

A corporation exists independent of its owners.

Back

True

Front

The terms of sale 1/10, n/30 means that 1/10 or 10% of the invoice amount may be deducted if paid within 30 days.

Back

False

Front

The total of accounts in the accounts payable subsidiary ledger equals the balance of the controlling account, Accounts Payable.

Back

True

Front

A merchandising business places Purchases in the Operating Expenses section of the income statement.

Back

False

Front

The periodic inventory method does not require records of the quantity and cost of individual goods.

Back

True

Front

The total of a schedule of accounts payable less purchases discounts taken during the month will equal the total of Accounts Payable.

Back

False

Front

A purchase of merchandise for cash would be posted: individually to purchases and individually to accounts payable, individually to purchases, as part of a column total to purchases, as part of column totals to purchases and accounts payable

Back

individually to purchases