1. What type of account is accounts receivable?

1. Revenue
2. Asset
3. Equity

2. An entry to post a vendor invoice debits Accounts Payable and credits an Expense account

1. True
2. False

3. When and why would it be appropriate to accrue an AP Invoice?

Complete the sentence using one phrase from both column A and column B

When _______________________________________________________ and

________________________________________________________________

Column A Column B

• Goods are ordered
• Goods are received
• You are under budget
• Goods are shipped

• an invoice has not been received for payment
• you have received an invoice
• you are under budget

4. The caf has credit card sales of $1,000, and the processing fee payable to the credit card company is 2%. The cash register is linked directly to the credit card company. The cash is received immediately with a deduction taken for the fee.

Match the terms in column A with the appropriate items in column B to complete the journal entry

Column A

Cash

Credit Card Expense, Fee

Credit Card Sales

Column B

Debit: $20

Credit: $20

Debit: $980

Credit: $980

Debit: $1,000

Credit: $1,000