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Chapter 17 - Special Journals: Purchases and Cash Payments

Total questions: 19

Worksheet time: 10mins

Name
Class
Date
1.

Goods that a business purchases in order to sell.

a)

merchandise

b)

vendor

c)

services

d)

supplies

2.

Accounts Payable are ____________.

a)

customers

b)

vendors

3.

An account in a general ledger that summarizes all accounts in a subsidiary ledger.

a)

contra account

b)

controlling account

c)

charter

d)

stocks

4.

A special journal used to record only purchases of merchandise on account.

a)

cash payments

b)

general

c)

sales

d)

purchases

5.

2/10, n30 means....

a)

the bill is due in 2 days

b)

2% discount if paid within 30 days

c)

10% discount if paid in 2 days, net due 30 days

d)

2% discount if paid in 10 days, net due 30 days

6.

A special journal used to record only cash payment transactions.

a)

sales

b)

purchases

c)

cash payments

d)

cash receipts

7.

An account that reduces a related account on a financial statement.

a)

debit

b)

credit

c)

contra

d)

controlling

8.

A list of vendor accounts, account balances, and the total amount due to all vendors.

a)

Schedule of Accounts Payable

b)

Schedule of Accounts Receivable

c)

Trial Balance

d)

Work Sheet

9.

Purchases is a _________ account.

a)

sales

b)

liability

c)

subsidiary

d)

cost

10.

Supplies bought for use in a business are recorded in the

a)

Supplies Expense account

b)

Supplies account

c)

Purchases account

d)

Cash account

11.

An employee working with an account can trace a transaction back to the correct journal by using information in the

a)

Post. Ref. column

b)

Item column

c)

Purch. No. column

d)

Vendor column

12.

What is the source document for merchandise purchased on account?

a)

Check

b)

Purchase invoice

c)

Memorandum

d)

Receipt

13.

What is the source document when merchandise is purchased for cash?

a)

Check

b)

Purchase invoice

c)

Memorandum

d)

Receipt

14.

What is the source document when a business pays for advertising?

a)

Check

b)

Purchase invoice

c)

Memorandum

d)

Receipt

15.

Purchases is classified as a(n) __ account.

a)

expense

b)

cost of merchandise

c)

liability

d)

asset

16.

Purchases of Merchandise on credit are recorded in the

a)

Sales Journal

b)

Purchases Journal

c)

Cash Receipts Journal

d)

Cash Payments Journal

e)

General Journal

17.

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

a)

accounts payable ledger

b)

accounts payable account

c)

accounts receivable ledger

d)

accounts receivable account

18.

A listing of vendor accounts, accounts balances, and total amount due all vendors.

a)

controlling account

b)

subsidiary ledger

c)

schedule of accounts receivable

d)

schedule of accounts payable

19.

What is the corresponding journal entry of the transaction?


Purchased merchandise on account costing Php 10,000 from Indian Palace. Term: 2/10, N/30.

a)

Debit: Accounts Receivable, Credit: Sales

b)

Debit: Purchases, Credit: Accounts Payable

c)

Debit: Accounts Payable, Credit: Purchases

d)

Debit: Accounts Payable, Credit: Purchase Discount