Question :
41.When a payment due determined by the invoice date and
A.credit : 1220598
41.When a payment is due is determined by the invoice date and
A.credit terms.
B.accounting cycle.
C.delivery date.
D.transportation schedule.
42.The total of the individual creditor accounts in the subsidiary ledger must ________ the balance of the Accounts Payable control account.
A.be greater than
B.be less than
C.be equal to
D.be subtracted from
43.The objective of internal control of purchases is to
A.create written proof that purchases and payments are authorized.
B.create a disciplined work environment.
C.make the sales process more complex.
D.create more organized invoices.
44.Which of the following statements is correct?
A.Purchases should be made only after proper authorization has been given in writing.
B.The person who ordered the goods should also authorize payment.
C.Computations on an invoice are assumed to be correct if computer generated.
D.Purchase requisitions do not need to be printed on pre-numbered forms.
45.Credit terms of 1/10, n/30 mean
A.only that payment in full is due 10 days after date of the invoice.
B.only that payment in full is due 30 days after date of the invoice.
C.if the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total amount is due in 20 days.
D.if the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total amount is due in 30 days.
46.Credit terms of 2/10, n/45 mean
A.payment in full is due 2 days after date of the invoice.
B.if the invoice is paid within 10 days of its date, a 2% discount may be taken; otherwise the total amount is due in 45 days.
C.if the invoice is paid within 10 days of its date, a 2% discount may be taken; otherwise the total amount is due in 35 days.
D.only that payment in full is due 45 days after date of the invoice.
47.Postings to the accounts payable ledger should be made
A.daily.
B.weekly.
C.monthly.
D.at the end of the fiscal period.
48.Which of the following statements is correct?
A.Purchases Discounts is a contra expense account and carries a credit balance.
B.Purchases Discounts is an expense account and carries a debit balance.
C.Purchases Discounts is an asset account and carries a credit balance.
D.Purchases Discounts is an expense account and carries a credit balance.
49.Assuming a periodic inventory system is used, to record a return of merchandise purchased on credit, the accountant would
A.debit Purchases Returns and Allowances and credit Accounts Receivable.
B.debit Purchases Returns and Allowances and credit Purchases.
C.debit Accounts Payable and credit Purchases Returns and Allowances.
D.debit Purchases and credit Purchases Returns and Allowances.
50.The total of the balances in the creditors’ accounts should agree with the balance of
A.the Purchases account in the general ledger.
B.the Accounts Receivable account in the general ledger.
C.the Accounts Payable account in the general ledger.
D.the Sales account in the general ledger.
