9/15/2015
Quick View
Name: __________________
Class: Date: _____________
(First Page)
Name: __________________
Class: Date: _____________
(Subsequent Pages)
1. Merchandise returned by a customer for a refund is called a sales discount.
a. True
b. False
2. Purchases Returns and Allowances is the contra­purchases account to which purchases returns and purchases allowances are debited.
a. True
b. False
3. The first document created in the purchasing process normally is the purchase requisition.
a. True
b. False
4. An invoice is never subject to both trade and cash discounts.
a. True
b. False
5. (Appendix) The purchases discounts lost account is only used with the gross­price method of recording purchases.
a. True
b. False
6. The types of special journals a business uses should depend on the types of transactions that occur most frequently for a business.
a. True
b. False
7. Transactions that are similar in type and recorded frequently are likely to have a special journal.
a. True
b. False
8. Special journals enable a substantial time savings and make for a more efficient posting process.
a. True
b. False
9. After the posting of the accounts receivable ledger and the general ledger is completed, the total of the accounts receivable ledger balances
should equal the Accounts Receivable balance in the general ledger.
a. True
b. False
10. Individual amounts for purchases returns and allowances are recorded in the General Debit column of the cash payments journal.
a. True
b. False
11. A business that purchases clothing, furniture, computers, or other products to sell to customers is a
a. wholesale business.
http://sjc.instructor.cengagenow.com/ilrn/bca/instr/test­printing/153458422/html­print?sel=153458422
1/5
9/15/2015
Quick View
b. retail business.
c. service business.
d. not­for­profit business.
12. The source document of a sales transaction is called a
a. purchase receipt.
b. purchase order.
c. sales return.
d. sales ticket.
13. Total sales less the sales price of any goods returned by customers, less any reduction in price given to customers, less cash discounts allowed
by the seller, is called
a. net sales.
b. cost of goods sold.
c. gross margin.
d. gross profit.
14. A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a
a. purchase invoice.
b. purchase order.
c. receiving report.
d. purchase requisition.
15. An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms of 3/10, n/30. The amount of the trade discount would
be
a. $91.60.
b. $27.48.
c. $24.73.
d. $824.40.
16. Which of the following indicates that the shipment is free on board at the point of origin of shipment and the buyer must pay all transportation
costs?
a. FOB destination
b. COD
c. FOB shipping point
d. 4/10, EOM
17. An invoice of $237.50 dated April 2 is subject to credit terms of 2/10, n/30. If the invoice is paid on April 14, the amount to be paid would be
a. $232.75.
b. $23.75.
http://sjc.instructor.cengagenow.com/ilrn/bca/instr/test­printing/153458422/html­print?sel=153458422
2/5
9/15/2015
Quick View
c. $4.75.
d. $237.50.
18. A journal that is not used by a business is a
a. cash flow journal.
b. purchase journal.
c. cash receipts journal.
d. sales journal.
19. Which of the following is NOT true about posting the cash receipts journal information at the end of the month?
a. Insert the date in the Date column and "CR" and the page number in the Posting Reference column of each ledger account.
b. Total the amount columns, prove the total of debits equal to credits, and rule the columns.
c. Post the individual amounts from the General Credit column to the appropriate general ledger accounts.
d. Post each column total except the General Credit column total to the general ledger accounts.
20. After the posting of the accounts payable ledger and general ledger is completed, the total of the accounts payable ledger balances should equal
the general ledger balance of
a. Accounts Payable.
b. Purchases.
c. Accounts Receivable.
d. Purchases Returns and Allowances.
21. Match the terms with the definitions.
Transportation charges are paid by the
seller.
purchases
A written order to buy goods from a
specific vendor (supplier).
FOB shipping point
An alphabetical or numerical listing of
supplier accounts and balances, usually
prepared at the end of the month.
purchase order
http://sjc.instructor.cengagenow.com/ilrn/bca/instr/test­printing/153458422/html­print?sel=153458422
3/5
9/15/2015
Quick View
The difference between net sales and
cost of goods sold.
cost of goods sold
A separate ledger containing an
individual account payable for each
supplier.
schedule of accounts payable
A report indicating what has been
received.
FOB destination
The difference between the goods
available for sale and the ending
inventory.
purchase invoice
A form used to request the purchase of
merchandise or other property.
receiving report
Transportation charges are paid by the
buyer.
gross profit
A reduction from the list or catalog price
offered to different classes of customers.
trade discount
A document prepared by the seller as a
bill for the merchandise shipped.
accounts payable ledger
purchase requisition
Merchandise acquired for resale to
customers.
PAGE 1 (First Page) PAGE 1 (Subsequent Pages)
http://sjc.instructor.cengagenow.com/ilrn/bca/instr/test­printing/153458422/html­print?sel=153458422
4/5
9/15/2015
Quick View
http://sjc.instructor.cengagenow.com/ilrn/bca/instr/test­printing/153458422/html­print?sel=153458422
5/5