Question :
41. When a payment due determined by the invoice date and A. credit : 1202787
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. 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.
43. Which of the following statements is correct?
A. Freight In is subtracted from Purchases to arrive at delivered cost of purchases.
B. Another name that may be used for the Freight In account is “Transportation In.”
C. Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.
D. None of these statements is correct.
44. Which of the following accounts has a normal debit balance?
A. Purchases
B. Purchase Returns
C. Accounts Payable
D. Sales
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. Which of the following 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.
48. 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.
49. The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid and added to the invoice is:
A. debit Purchases $965; credit Accounts Payable $965.
B. debit Accounts Payable $965, debit Freight in $65; credit Purchases $900.
C. debit Purchases $900, debit Freight In $65; credit Accounts Payable $965.
D. debit Accounts Receivable $965; credit Sales $965.
50. The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is:
A. debit Purchases $2,750; credit Accounts Payable $2,750.
B. debit Accounts Payable $2,875, debit Freight in $125; credit Purchases $2,750.
C. debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875.
D. debit Accounts Receivable $2,875; credit Sales $2,875.
