Question 2

A:

Most of the accounting cycle have journal entries that accompany activities of each cycle. Which of the below expenditure or revenue cycle activities will not have journal entries

Paying a supplier

1. Billing a customer
2. Returning inventory to supplies
3. Processing the sale order
4. Receiving payment from the customer.

B:

Which statement about Revenue Cycle is correct?

1. The sales order department prepares the invoice.
2. The billing department use the sales order and sipping documents to create the invoice.
3. The account receivable department use the sales order to update the account receivable subsidiary ledger.
4. The customer and account payable department get copies of the invoice.

C:

Which statement about the Expenditure Cycle is correct?

1. The blind copy of the purchase order goes to account receivables.
2. The three-way match contains the invoice, receiving report, and purchase order.
3. The purchasing agent counts and inspects the goods.
4. The purchase order is prepared by the sales order department.

D:

You are working for a company and pross a credit memo. This indicates that:

1. Merchandise was returned from the customer and the account receivable must be adjusted.
2. A sale took place and the accounts receivable must be adjusted.
3. A sales discount was given to a customer for payment received early.
4. Merchandise was returned to a supplier and the account payable must be adjusted.
5. Merchandize was purchased and inventory must be adjusted.