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WorksheetsJournalizing - NC3
Total questions: 25
Worksheet time: 13mins
The discount period for credit terms of 1/10, n/30 is:
1 day
10 days
20 days
30 days
The difference between net sales and cost of merchandise sold for a merchandising business is:
Sales
Net Sales
Gross Profit
Gross Sales
When purchases of merchandise are made on account, the transaction would be recorded with the following entry:
Debit: Accounts Payable
Credit: Merchandise Inventory
Debit: Merchandise Inventory
Credit: Accounts Payable
Debit: Merchandise Inventory
Credit: Cash
Debit: Cash
Credit: Merchandise Inventory
Which of the following accounts is credited by the seller when merchandise purchases are paid for within the discount period?
Merchandise Inventory
Accounts Payable
Accounts Receivable
Sales Discounts
Gross Margin is calculated as:
Sales less cost of merchandise sold
Sales less merchandise inventory
Sales less expenses
Sales less operating expenses
For inventory that is shipped FOB destination, title transfers from the seller to the buyer once the seller ships the inventory.
True
False
Cost of goods sold is an asset reported in the balance sheet and inventory is an expense reported in the income statement.
True
False
Cost of Merchandise Sold would be classified as:
Asset
Expense
Liability
Revenue
The Sales Discounts account is an expense account.
True
False
If a company has beginning inventory of P15,000, purchases during the year of P75,000, and ending inventory of P20,000, cost of goods sold equals P70,000.
True
False
The owner withdrew cash for personal use.
Debit: Accounts Receivable
Credit: Cash
Debit: Cash
Credit: Drawings
Debit: Cash
Credit: Notes Payable
Debit: Drawings
Credit: Cash
Goods are purchased on credit terms?
Decrease in Asset
Decrease in Liability
Increase in Liability
Increase in Equity
Information for each transaction recorded in a journal
Entry
Journal
Sales Invoice
Source Document
A business paper from which information is obtained for a journal entry
Journal
Source Document
Sales Invoice
Check
Every business uses the same journal to record transactions
True
False
The Objective Evidence concept requires proof that a transaction did occur
True
False
A form describing the goods or services sold, the quantity, the price, and the terms of sale
Sales Invoice
Invoice
Receipt
Journal
Other term for Merchandising?
Trading
Dealings
Marketing
Commerce
It is the buying of goods and selling the same without change in form.
Service Business
Merchandising
Manufacturing
It is the art of analyzing financial transactions and economic events, recording them, classifying them into accounts, summarizing them, reporting, and interpreting the results.
Bookkeeping
Journalizing
Accounting
Auditing
Which of the following is an incorrect depiction of the accounting equation?
Assets = Liabilities + Owners' Equity.
Assets – Owners' Equity = Liabilities.
Assets – Liabilities = Owners' Equity.
Assets + Owner's Equity = Liabilities.
Unearned revenues are:
revenues.
liabilities.
accruals.
assets.
An accrued expense is
an expense which is recorded with the passage of time.
an expense that has been incurred but for which payment has not yet been made.
an expense for which cash is paid before the expense is incurred.
initially recorded as an asset.
The accounting cycle for a merchandiser is the same as the accounting cycle for a service firm.
True
False
The double-entry accounting system means
each transaction is recorded with two journal entries
each item is recorded in a journal entry, then in a general ledger account.
the dual effect of each transaction is recorded with a debit and a credit.
each journal entry must have one debit and one credit, or two debits and two credits.
