Transactions Quiz

What have the transactions dealt with so far, according to the learning material?

• Credit transactions

• Barter transactions

• Cash transactions

• Digital transactions

What does Figure 9.1 illustrate in the context of transactions?

• The process of a barter system

• The flow of goods and services in a credit transaction

• The exchange of goods and services for cash

• The digital payment system

Which of the following characteristics are important in upholding for source documents for credit transactions?

• Verifiability and Faithful representation

• Transparency and Efficiency

• Accuracy and Speed

• Completeness and Timeliness

What does the term "2/7, n/30" on a source document usually indicate?

• A discount of 2% is available if the payment is made within 7 days, otherwise the net amount is due within 30 days.

• A discount of 7% is available if the payment is made within 2 days, otherwise the net amount is due within 30 days.

• A discount of 2% is available if the payment is made within 30 days, otherwise the net amount is due within 7 days.

• A discount of 30% is available if the payment is made within 2 days, otherwise the net amount is due within 7 days.

Based on the source document provided, is this document illustrating a credit sale or a credit purchase?

• Credit sale

• Credit purchase

• Cash sale

• Cash purchase

What are customers known as when they owe the business for inventory that has been sold to them on credit?

• Debtors

• Creditors

• Accounts Payable

• Accounts Receivable

What are suppliers known as when a business owes them for inventory purchased on credit?

• Accounts Receivable

• Debtors

• Accounts Payable

• Creditors

What is the main difference in transactions when inventory is sold or purchased on credit compared to cash transactions?

• The inventory is not delivered on the same day.

• The cash is exchanged on the same day as the inventory.

• The cash is not exchanged on the same day as the inventory.

• Different principles apply to the transaction.

What occurs when a business buys inventory from a supplier on credit?

• The business must pay immediately.

• The business is not required to pay until a later date.

• The business exchanges services instead of payment.

• The business pays with a different type of credit.

What are the cash receipts journal and cash payments journal used to summarize?

• Credit transactions only.

• Non-cash transactions.

• Cash transactions.

• Inventory management.