1-The buyer received an invoice from the seller for merchandise with list price of RO 7500 and credit terms of 2/10 and n/30. The number 10 in the credit term is:

a. Trade discount

b. Percentage of Cash Discount

c. Credit period

d. Discount period

2-Which account will be credited to record the purchase of merchandise on credit under periodic inventory method?

a. Accounts Payable

b. Purchase

c. Accounts receivable

d. Cash

3-Business received dividend income of OMR 12,500 from Oman Cement Company. Which of the following specialized journals will record this transaction?

a. Cash payment journal

b. Sales journal

c. Purchase journal

d. Cash receipt journal

4-Which of the following is an example of Current Asset of a Merchandise Business?

a. Accounts payable

b. Accounts receivable

c. Salary and Wages paid by the business

d. Interest expense

5-Muscat Supplies LLC returned goods worth OMR 2,800. Which books of prime entry will record the above transaction?

a. Purchase journal

b. Sales journal

c. Cash disbursement journal

d. General journal