Accounting 1 DC Final Exam

A purchase of merchandise for cash would be posted.

• individually to Purchases and individually to Accounts Payable.

• individually to Purchases.

• as part of a column total to Purchases.

• as part of column totals to Purchases and Accounts Payable.

The total of accounts in the accounts payable subsidiary ledger equals the balance of the controlling account, Accounts Payable.

• True

• False

Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.

• True

• False

A special journal used to record only sales of merchandise on account is a payments journal.

• True

• False

Merchandise with a list price of $1,500.00 is purchased on account for $900.00 on August 1. Terms of sale are 2/10, n/30. Payment is made on August 17. The amount paid should be

• $1500

• $900

• $600

• $882

The Purchases account is classified as a(n)

• Expense

• Asset

• Liability

• Cost of Goods Sold

Supplies bought for use in a business are recorded in the

• Supplies Account

• Supplies Expense Account

An employee working with an account can trace a transaction back to the correct journal by using information in the

• Post. Ref. column.

• Item column.

• Purch. No. column

• Vendor column.

To replenish a $300.00 petty cash fund, if the petty cash custodian had receipts totaling $224.00 and cash of $74.00 in the petty cash box, one part of the journal entry is a

• credit to Cash for $224.00.

• debit to Cash Short and Over for $2.00.

• debit to Petty Cash for $224.00.

• credit to Cash Short and Over for $2.00.

Which scenarios below could describe the credit to cash

• Paid $10,000 to a vendor that you owed

• Paid $10,000 to the landlord for rent

• Received $10,000 from a customer