Question : 131.A voucher system a set of procedures and approvals: A.Designed to : 1236998

Accounting

131.A voucher system is a set of procedures and approvals:

A.Designed to eliminate the need for subsidiary ledgers.

B.Designed to determine if the company is operating profitably.

C.Used almost exclusively by small companies.

D.Used to ensure that the company sells on credit only to creditworthy customers.

E.Designed to control cash disbursements and the acceptance of obligations.

132.The gross method of recording purchases refers to recording:

A.Purchases at the invoice price less any cash discounts.

B.Specified amounts and timing of payments that a buyer agrees to in return for being granted credit.

C.Purchases at the full invoice price, without deducting any cash discounts.

D.Inventory at its selling price.

E.Inventory at the lower of cost or market.

133.An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called:

A.Sales discounts.

B.Trade discounts.

C.Purchases discounts.

D.Discounts lost.

E.Discounts earned.

134.A company using the net method of recording purchases failed to take advantage of a discount available. When they pay the full (gross) amount of an invoice at the end of the credit period the journal entry will include a debit to:

A.Merchandise Inventory.

B.Sales Discounts.

C.Discounts Lost.

D.Cash.

E.Accounts Receivable.

135.A company that uses the net method of recording purchases made a purchase of $400 with terms of 2/10, n/30. The entry to record the purchase would be:

A.Debit Merchandise Inventory $392; credit Accounts Payable $392.

B.Debit Merchandise Inventory $400; credit Discounts Lost $8; credit Accounts Payable $392.

C.Debit Merchandise Inventory $392; credit Cash for $392.

D.Debit Merchandise Inventory $392; debit Discounts Lost $8; credit Accounts Payable $400.

E.Debit Accounts Payable $400; credit Discounts Lost $8; credit Cash $392.

136.Merchandise with an invoice price of $2,000 was purchased on February 3, terms 2/15, n/60. The company uses the net method to record purchases. The entry to record the cash payment of this purchase obligation on February 17 is:

A.Debit Accounts Payable $1,960; credit Cash $1,960.

B.Debit Accounts Payable $2,000; credit Cash $2,000.

C.Debit Accounts Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.

D.Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.

E.Debit Accounts Payable $2,000; credit Discounts Lost $40; credit Cash $1,960.

137.Merchandise with an invoice price of $2,000 was purchased on February 3, terms 2/15, n/60. The company uses the net method to record purchases. The entry to record the cash payment of this purchase obligation on February 27 is:

A.Debit Accounts Payable $1,960; credit Cash $1,960.

B.Debit Accounts Payable $2,000; credit Cash $2,000.

C.Debit Accounts Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.

D.Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.

E.Debit Accounts Payable $2,000; credit Discounts Lost $40; credit Cash $1,960.

138.A company records purchases using the net method. On February 1, they purchased merchandise inventory on account for $7,300 with terms of 1/10, n/30. The February 1 journal entry to record this transaction would include a:

A.Debit to Merchandise Inventory of $7,300.

B.Debit to Merchandise Inventory of $7,227.

C.Debit to Merchandise Inventory of $73.

D.Credit to Merchandise Inventory of $73.

E.Credit to Accounts Payable of $7,300.

139.Internal controls are crucial to companies that convert from U.S. GAAP to IFRS because of all of the following risks except:

A.Possible misstatement of financial information.

B.Possible fraud.

C.Controls are significantly different across the globe.

D.Ineffective communication of the change to investors, creditors, and others.

E.Management’s inability to certify the effectiveness of the controls.

140.All of the following are considered effective cash management principles except:

A.Encouraging collection of receivables by offering discounts for early payments.

B.Keeping only necessary levels of assets.

C.Planning expenditures.

D.Retaining excess cash for unexpected expenditures.

E.Delaying payment of liabilities until the last possible day.

Continue to order Get a quote

July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.