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WorksheetsA2 Chapter 23 & 24 Review
Total questions: 30
Worksheet time: 23mins
The process of paying a partnership's liabilities and distributing remaining assets to the partners.
(a)
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)
Cash received from the sale of assets during liquidation of a
partnership.
(a)
A partnership financial statement showing net income or loss distribution to partners.
(a)
A draft that is payable at a fixed or determinable future time after it is accepted.
(a)
A written agreement setting forth the conditions under which a partnership is to operate.
(a)
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)
Goods or services shipped into the buyer’s home country from another country.
(a)
Goods or services shipped out of a seller’s home country to another country.
(a)
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)
Legally, a partnership agreement may be either written or oral.
True
False
When liquidating a partnership, after all noncash assets are sold and all creditors are paid, any remaining cash is distributed to the partners in the same proportions as the earnings are shared.
True
False
A trade acceptance is similar to a draft except a draft is generally paid by a bank and a trade acceptance is paid by the buyer.
True
False
The lack of uniform commercial laws among countries makes international sales simpler than domestic sales.
True
False
Sales taxes are normally paid only on sales to the final consumer.
True
False
Withdrawals could be recorded as debits to the partners’ capital accounts, but are normally recorded in separate accounts so that the total amounts are easily determined.
True
False
The transportation company sends the signed bill of lading to the buyer, so the seller does not know when the merchandise has been shipped.
True
False
The steps in preparing a distribution of net income statement are different depending on how earnings are shared.
True
False
The Assets and Liabilities sections of a balance sheet for a partnership are prepared in the same way as the Assets and Liabilities sections of a balance sheet for a proprietorship.
True
False
A seller generally has much more assurance of receiving payment from a buyer than from a bank.
True
False
The entry to journalize an international cash sale includes a
debit to Time Drafts Receivable and a credit to International Sales.
debit to International Sales and a credit to Time Drafts Receivable.
debit to Sales and a credit to Cash.
debit to Cash and a credit to Sales.
The journal entry to record an international cash sale would be recorded in a
cash receipts journal.
cash payments journal.
general journal.
purchases journal.
The documents that must be presented to a seller’s bank in order for the seller to collect payment for an international cash sale are
a bill of lading, a commercial invoice, and a draft.
an invoice and a shipping document.
a bill of lading and a draft.
a commercial invoice, a bill of lading, and a sales tax invoice.
The entry to journalize the receipt of a time draft for an international sale includes a
debit to Sales and a credit to Cash.
debit to Cash and a credit to Sales.
debit to Sales and a credit to Time Drafts Receivable.
debit to Time Drafts Receivable and a credit to Sales.
The journal entry to record the receipt of a time draft for an international sale would be recorded in a
cash payments journal.
cash receipts journal.
general journal.
purchases journal.
The entry to journalize the receipt of cash for the value of a time draft includes a
debit to Time Drafts Receivable and a credit to Cash.
debit to Cash and a credit to Time Drafts Receivable.
debit to Cash and a credit to Sales.
debit to Sales and a credit to Cash.
The journal entry to record the receipt of cash for the value of a time draft would be recorded in a
cash payments journal.
cash receipts journal.
general journal.
sales journal.
The journal entry to record an Internet credit card sale includes a
debit to Cash and a credit to Sales.
debit to Sales and a credit to Cash.
debit to Accounts Receivable and a credit to Sales.
debit to Sales and a credit to Accounts Receivable.
The journal entry to record an Internet credit sale would be recorded in a
cash payments journal.
cash receipts journal.
general journal.
sales journal.
A draft that is payable at a fixed or determinable future time after it is accepted is called a
sight draft.
future draft.
bill of lading draft.
time draft.
