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WorksheetsAdvanced Accounting - Chapter 24
Total questions: 24
Worksheet time: 19mins
Name
Class
Date
1.
Goods or services shipped out of a seller’s home country to a foreign country.
a)
exports
b)
imports
c)
drafts
d)
contracts
2.
A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount provided stated conditions are met.
a)
letter of crediability
b)
letter of intent
c)
letter of credit
d)
letter of acceptance
3.
A draft payable on sight when the holder presents it for payment.
a)
initial draft
b)
sight draft
c)
trade acceptance
d)
commercial invoice
4.
A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money, usually at a stated time in the future.
a)
trade acceptance
b)
trade alternative
c)
bill of lading
d)
commercial invoice
5.
A document that details all the terms agreed to by the seller and buyer for a sales transaction.
a)
time draft
b)
commercial invoice
c)
contract of trade
d)
contract of sale
6.
A statement prepared by the seller of merchandise addressedto the buyer, showing a detailed listing and description ofmerchandise sold, including prices and terms
a)
commercial invoice
b)
sales invoice
c)
purchase invoice
d)
invoice
7.
A written, signed, and dated order from one party ordering another party, usually a bank, to pay money to a third party.
a)
trade acceptance
b)
bill of lading
c)
draft
d)
time draft
8.
A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise.
a)
commercial invoice
b)
bill of lading
c)
letter of credits
d)
trade acceptance
9.
Credit card sales on the Internet are handled differently than other credit card sales.
a)
True
b)
False
10.
International transactions are all covered by the same universal commercial laws and the same accounting standards.
a)
True
b)
False
11.
A company’s website must be easy to navigate and safe to use.
a)
True
b)
False
12.
It is easy to determine an international customer’s financial condition or to take legal action if that customer does not pay.
a)
True
b)
False
13.
Domestic sales are much simpler than international sales.
a)
True
b)
False
14.
Selling merchandise to individuals or other businesses within one’s own country is generally referred to as domestic sales.
a)
True
b)
False
15.
The growth of information technology and trading relationships have made doing business internationally more complex.
a)
True
b)
False
16.
Internet sales must be done in cash rather than by using a credit card.
a)
True
b)
False
17.
International sales often specify a letter of credit as the method of payment.
a)
True
b)
False
18.
International sales are not a very important source of revenue for businesses through-out the world
a)
True
b)
False
19.
The entry to journalize an Internet cash sale is a debit to Cash and a credit to
a)
a. International Sales.
b)
b. Time Drafts Receivable.
c)
c. Sales.
d)
d. Internet Sales.
20.
The entry to journalize the receipt of a time draft for an international sale would be
a)
a. debit Time Drafts Receivable; credit Cash.
b)
b. debit Time Drafts Receivable; credit Sales.
c)
c. debit Sales; credit Time Drafts Receivable.
d)
d. debit Cash; credit Time Drafts Receivable.
21.
The entry to journalize the receipt of cash for the value of a time draft would be recorded in a
a)
a. cash payments journal.
b)
b. cash receipts journal.
c)
c. general journal.
d)
d. sales journal.
22.
The entry to journalize the receipt of cash for the value of a time draft would be
a)
a. debit Time Drafts Receivable; credit Cash.
b)
b. debit Time Drafts Receivable; credit Sales.
c)
c. debit Sales; credit Time Drafts Receivable.
d)
d. debit Cash; credit Time Drafts Receivable.
23.
The entry to journalize an international cash sale is a debit to Cash and a credit to
a)
a. International Sales.
b)
b. Time Drafts Receivable.
c)
c. Sales.
d)
d. Internet Sales.
24.
The entry to journalize an international cash sale would be recorded in a
a)
a. cash payments journal.
b)
b. cash receipts journal.
c)
c. general journal.
d)
d. sales journal.
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