PURCHASES JOURNAL QUIZ---DECEMBER 9, 2020

Goods that a business purchases to sell are called

• Merchandise
• Wholesale
• Retail
• Stuff

A business from which merchandise, supplies, or another assets are purchased is called a 

• Vendor
• Ledger
• Accounts Payable
• Wal Mart

A transaction in which the items purchased are to be paid for later is called a

• purchase on account
• Cash purchase
• Debit card purchase
• Discount

Which account is debited in the following transaction:  Purchased merchandise on Account from McKell Supply.

• Purchases
• Accounts Payable McKell Supply
• Cash
• Misc. Expense

Which account is credited in the following transaction:  Purchased merchandise on account from McKell Supply.

• Accounts Payable McKell Supply
• Purchases
• Cash
• Misc. Expense

Purchases of Merchandise on credit are recorded in the

• Sales Journal

• Purchases Journal

• Cash Receipts Journal

• Cash Payments Journal

• General Journal

A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account.

• accounts payable ledger

• accounts payable account

• accounts receivable ledger

• accounts receivable account

The total amount owed to all vendors is summarized in a single general ledger account, Accounts Payable.

• True

• False

Calculate the total.

• 950

• 800

• 200

Calculate the total.

• 1000

• 1500

• 2000