Question : MULTIPLE CHOICE 3.              Which of the following not part of the : 1369961

 

MULTIPLE CHOICE

 

3.              Which of the following is not part of the expenditure process?

A)Determine the need for goods/services

B)Receive cash from sales during the period

C)Receive goods and services

D)Pay suppliers of goods and services

 

 

4.              Which of the following is not a special journal?

A)Depreciation journal

B)Sales journal

C)Cash receipts journal

D)Purchases journal

 

 

5.              In a purchases journal only one amount is recorded but that amount is posted by

A)Debiting Accounts Payable and crediting Inventory

B)Debiting Inventory and crediting cash

C)Debiting cash and crediting accounts payable

D)Debiting inventory and crediting accounts payable

 

 

 

6.              The purpose of the account payable subsidiary ledgers is:

A)Keep track of the various products being manufactured

B)Monitor the balance in the various cash accounts at banks

C)Identify individuals and companies who the company owes money

D)Identify the cash inflow expected from people who owe money to the company

 

 

7.              The total of the accounts payable subsidiary ledger is equal to:

A)The balance in the general ledger purchases account

B)The balance in the general ledger accounts receivable account

C)The total amount the company owes to those provided inventory to the company

D)The total amount of the liabilities in the general ledger

 

 

8.              Which of the following entries reflects the use of a periodic inventory system?

A)

B)

C)

D)

 

 

9.              Which of the following entries reflects the use of a perpetual inventory system?

A)

B)

C)

D)

 

 

 

 

10.              Which of the following entries reflects the use of a periodic inventory system?

A)

B)

C)

D)

 

11.              Which of the following entries reflects the use of a perpetual inventory system?

A)

B)

C)

D)

 

12.              The gross method records the purchase discount.

A)When it is taken

B)When the inventory is purchased

C)When the inventory is sold

D)When the inventory is returned

 

13.The net method records

A)  The purchase discounts lost

B)  The purchased discounts taken

C)  Both purchase discounts lost and taken

D)  Only returns taken at a discount

14.              If a company uses the perpetual inventory method and it purchases inventory on account worth $2,000 with terms 2/10 n/30 what will be the cost of the inventory when the inventory is purchased if it is using the net method?

A)$2,000

B)$1,800

C)$1,960

D)$2,200

 

 

15.              The purchase discount lost accounts is used when with –

A)The gross method is used with periodic system and the terms of the discount are not met.

B)The net method is used with the perpetual system and the terms of the discount are met.

C)The gross method is used with the periodic system the terms of the discount are not met.

D)The net method applied to either the periodic or perpetual systems and the terms of the discount are not met.

 

 

16.              Which of the following entries is made when a discount is taken and the perpetual system uses the gross method?

A)

APXXXX

CashXXXX

Inventory XXXX

B)

Cost of Goods Sold XXXX

Purchase discountXXXX

C)

Purchase Discount XXXX

InventoryXXXX

D)

A/PXXXX

Purchase DiscountXXXX

CashXXXX

 

 

17.   Which of the following entries is made when a discount is not taken and the perpetual system uses the net method?

A)

APXXXX

CashXXXX

Inventory XXXX

B)

Cost of Goods Sold XXXX

Purchase discountXXXX

C)

Purchase Discount XXXX

InventoryXXXX

D)

A/PXXXX

Purchase Discount LostXXXX

CashXXXX

 

18.A company, using the net method, purchased inventory for $3,000 and term 2/10 net 30 but did not pay the bill in time to take advantage of the discount.  The cost recorded in the inventory account after this event would be?

A)  $3,000

B)  $2,940

C)  $3,060

D)  Not enough data to determine

 

19.              Which of the following entries is made when a discount is taken and the periodic system uses the gross method?

A)

B)

C)

D)

 

 

 

 

20.              Which of the following is the entry used to determine cost of goods sold when the periodic inventory system is used?

A)

B)

C)

D)

 

21.              Net pay is equal to:

A)Gross pay plus FICA

B)Gross pay plus all deductions

C)Gross pay minus all deductions

D)Gross pay less all deductions plus employer payroll taxes

 

22.Which of the following could not be net pay?

A)   Gross pay less FICA, union dues, income tax withheld

B)    Gross pay less FICA, health insurance, income tax withheld

C)    Gross pay less FICA, income tax withheld

D)    Gross pay less FICA, income tax withheld, federal unemployment taxes