FABM II REVIEW

Sales returns are debited in order to record returns of customers or allowances for such returns.

• TRUE

• FALSE

Loan is the amount of goods bought during the current accounting period of time.

• TRUE

• FALSE

Selling Expenses is the account used to record transportation costs of merchandise purchased by the company.

• TRUE

• FALSE

Contra Purchases is an account that is credited being “contrary” to the normal balance of Purchases account.

• TRUE

• FALSE

Sales discount is where discounts given to customers who pay early are recorded.

• TRUE

• FALSE

A report form of the SFP that shows asset accounts first and then liabilities and owner’s equity accounts after. (Haddock, Price, & Farina, 2012)

• TRUE

• FALSE

Statement of Financial Position contains information about a revenues and expenses earned and incurred by the business.

• TRUE

• FALSE