Questions Questions Ask question Search Order By: ActiveCategoryClear Filter 0 Votes 1 Ans The accounts Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight In are found on the balance sheet. 834 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Computerized systems can be used to capture accounting information such as accounts receivable, inventory items, accounts payable, and sales 776 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Because many companies use computerized accounting systems, periodic inventory is widely used 691 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The ratio of net sales to assets measures how effectively a business is using its assets to generate sales 770 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Closing entries for a merchandising business are not similar to those for a service business 792 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The adjusting entry to record inventory shrinkage would generally include a debit to Cost of Merchandise Sold 844 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the general ledger. 811 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer 858 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOB shipping point 794 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Title to merchandise shipped FOB shipping point passes to the buyer upon delivery of the merchandise to the buyer’s place of business 758 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans A business using the perpetual inventory system, with its detailed subsidiary records, does not need to take a physical inventory 871 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The buyer will include the sales tax as part of the cost of items purchased for use 751 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The seller records the sales tax as part of the sales amount 796 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The seller may prepay the freight costs even though the terms are FOB shipping point 766 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Most companies will not take a purchases discount, because 1% or 2% discounts are insignificant 757 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans When companies use a perpetual inventory system, the recording of the purchase of inventory will include a debit to purchases 727 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans There is no difference between the recording of cash sales and the recording of MasterCard or VISA sales 1.03K viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The chart of accounts for a merchandise business would include an account called Delivery Expense 908 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans If merchandise costing $3,500, terms FOB destination, 2/10, n/30, with prepaid freight costs of $125, is paid within 10 days, the amount of the purchases discount is $70 1.25K viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans When the terms of sale are FOB shipping point, the buyer should pay the freight charges 725 viewsDarshita Changed status to publish February 14, 2020 « Previous 1 2 … 14 15 16 17 18 … 128 129 Next »
