ACCOUNTING - CHAPTER 14 PRE-TEST

A business that buys goods and then sells those goods to customers for a profit is called a(n)

• Merchandising Business

• Wholesale Business

• Good business

• Retail Business

A reduction in the sales price of an item that is given to a customer for prompt payment is a ____ or ____

• Cash Discount or Sales Price

• Sale Price or Cash Discount

• Cash Discount or Sales Discount

• Sales Allowance or Cash Discount

The customer to whom a sale on account is made is call a (n)

• Sales Customer

• Contra Customer

• Charge Customer

• Bad Customer

A(n) ______ occurs when a customer buys an item with a promise to pay for it later.

• Sale on Account

• Sales Allowance

• Sales Discount

• Charge Allowance

A business that sells to the final user is known as a ____

• Normal Business

• Retailer

• Wholesale Business

• Merchandising Business

Charge customers often use a (n) ___ when they make a purchase on account.

• Debit Card

• Credit Card

• Gold Card

• Sales Card

A levy imposed by most states on the retail sales price of goods and services is a(n) ____.

• Retail Tax

• Government Tax

• Federal Tax

• Sales Tax

Full credit or a cash refund granted by a merchant to a customer for unsatisfactory merchandise is a(n) ___.

• Refund Return

• Sales Return

• Merchant Return

• Sales Allowance

____ refers to the items of merchandise a business has in stock.

• Inventory

• Merchandise Stock

• Business Stock

• Credit Merchandise

The balance of a (n) ____must agree with the balance of the accounts in its related subsidiary ledger.

• Contra Account

• Controlling Account

• Accounts Receivable Account

• Temporary Account