Financial Accounting 1

FOB shipping point means ...

• buyer pays freight cost

• seller pays freight cost

• buyer and seller didn't pay anything

• seller pays buyer

NSF stands for ...

How do you read 5/10, n/30 term ...

• 10 percent discount if paid in 30 days

• 5 percent discount if paid in 10 days

• 5 percent discount if paid in 30 days

• get a discount if paid in 30 days

Which inventory tracking method is more accurate?

• periodic

• LIFO

• perpetual

• average

FOB destination point means ...

• buyer pays freight cost

• seller pays buyer

• seller gets discount

• seller pays fright cost

Fraud means ...

• Dishonest act by an employee that results in personal benefit to the employee at a cost to the employer

• Dishonest act by a manager that results in personal benefit to the manager at a cost to the CEO.

• the quality of having strong moral principles ; honesty and decency.

• the condition of being unified, unimpaired, or sound in construction.

In merchandising operation using perpetual systems, when a person purchases goods or services, we can write it as ...

• (d) supplies

  (cr) cash / account payable

• (d) supplies

  (cr) account receivable

• (d) inventory

  (cr) cash / account payable

• (d) purchases

  (cr) supplies

Three factors that contribute to fraudulent activity, except ...

• Opportunity

• Financial Pressure

• Rationalization

• Integrity

what is included in the income statement in worksheet ?

• drawings and owner's equity

• all revenues and expenses

• all assets

• accumulated depreciation and account payable

In closing entries, there are several accounts that are not closed, except ...

• all asset accounts

• all liability accounts

• all revenue account

• owner's capital accounts