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1 ) Once journal entries are entered in the purchases journal, totals are posted to the general ledger. True False 2) A material requisition is
1 ) Once journal entries are entered in the purchases journal, totals are posted to the general ledger.
True | |
False |
True | |
False |
True | |
False |
True | |
False |
True | |
False |
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. |
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. |
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