1 ) Once journal entries are entered in the purchases journal, totals are posted to the general ledger.

	True
	False

2) A material requisition is initiated in order to request needed merchandise in a merchandising firm.

	True
	False

3) Buyers can sometimes receive a purchase discount if a timely payment is made.

	True
	False

4) Cash purchases are recorded in the cash disbursements journal or the general journal.

	True
	False

5) The Schedule of Accounts Payable is a list of accounts taken from the Accounts Payable subsidiary ledger with their balances and a total.

	True
	False

6) Merchandise inventory:

	Can include the cost of shipping the goods to the store and making them ready for sale.
	Equals cost of goods sold minus shipping costs.
	Only appears on the balance sheet of a service company.
	Refers to products a company owns but does not intend to sell.
	Is reported on the balance sheet as a fixed asset.

7) A trade discount is:

	A reduction in price below the list price.
	A reduction in price for prompt payment.
	Also called a rebate.
	A term used by a purchaser to describe a cash discount given to customers for prompt payment.
	A term used by a seller to describe a cash discount granted to customers for prompt payment.

8)Credit terms include the:

	Invoice date.
	Discount period.
	Discount amount.
	Credit period.
	All of the above

9) The credit terms 3/15, n/60 are interpreted as:

	60% discount if paid within 15 days.
	15% cash discount if the amount is paid within 3 days, with balance due in 60 days.
	3% discount if paid within 60 days.
	15% discount if paid within 60 days.
	3% cash discount if the amount is paid within 15 days, with the balance due in 60 days.

10) When a department needs products to sell, it prepares a:

	Balance Sheet.
	Purchase Order.
	Withdrawal Form.
	Purchase Requisition.
	Sales Invoice.