Question :
Multiple Choice Questions
31. Which of the following statements not correct? A. In accounting, : 1202802
Multiple Choice Questions
31. Which of the following statements is not correct?
A. In accounting, the term “cash” includes checks, money orders, and funds on deposit in a bank as well as currency and coins.
B. The cash register proof is used to enter the cash sales and sales tax in the journal.
C. In a well managed business, most bills are paid by cash.
D. The petty cash account balance is usually listed separately from the Cash account on the Balance Sheet.
32. Upon collection of the amount due on an interest-bearing promissory note from a customer, the accountant would debit Cash, credit Notes Receivable, and
A. debit Interest Expense.
B. credit Interest Income.
C. credit Interest Expense.
D. debit Interest Income.
33. Beckett Co. sold merchandise on account for $10,600, terms 2/10, n/30. Freight charges of $250 were prepaid by the seller and added to the invoice. The customer returned $800 of merchandise before making the payment then paid the invoice within the discount period. What is the amount Beckett Co. received?
A. $9,854
B. $9,604
C. $9,849
D. $9,833
34. Merchandise is sold for $8,820, terms 1/10, n/30. Prior to payment, the customer returned $560 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is:
A. $82.60
B. $165.20
C. $88.20
D. $93.80
35. During the month a company paid $54.75 for office supplies and $63.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include
A. a debit to petty cash for 117.97
B. a debit to Cash for $117.97
C. a credit to cash for $117.97
D. a credit to office supplies for $54.75
36. Most businesses use the petty cash fund to pay for
A. small expenditures.
B. accounts payable.
C. internal expenses.
D. office lunches.
37. The entry to replenish a petty cash fund includes
A. a debit to Cash and a credit to Petty Cash.
B. a debit to Petty Cash Fund and a credit to Cash.
C. debits to various expense accounts and a credit to Petty Cash Fund.
D. debits to various expense accounts and a credit to Cash.
38. Which of the following statements is correct?
A. The entry to record the payment of an invoice within the cash discount period would include a debit to the Purchases Discounts account.
B. To record a cash purchase of merchandise, the accountant would debit Purchases and credit Cash.
C. A check is a written order signed by an authorized person, the drawee.
D. Purchase discounts is a contra revenue account.
39. The most appropriate form of endorsement of a check for business purposes is
A. the blank endorsement.
B. the restrictive endorsement.
C. the full endorsement.
D. no endorsement.
40. Merchandise costing $5,600 with terms of 1/10, n/30, with transportation costs of $320 included on the invoice (not included in the $5,600) is sold on account. If the bill is paid within ten days, the amount of the purchase discount is
A. $59.20
B. $3.20
C. $56.00
D. $52.80
