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ACTG M12

Total questions: 29

Worksheet time: 20mins

Name
Class
Date
1.

entity that earns profit by buying and selling of goods.

(a)  

2.

is the one who buys in bulk from manufacturer or another wholesaler and sells them in bulk ro other wholesaler or retailer.

(a)  

3.

buys merchandise from the manufacturer or wholesaler and sells them by piece to ultimate consumers.

(a)  

4.

BUYS PRODUCTS BUT MAY NOT BE THE END USER.

(a)  

5.

ANYONE WHO USES OR CONSUMES THE PRODUCTS.

(a)  

6.

Whenever we buy we can used the Account Title

(a)  

7.

Whenever we sell we can used the Account Title

(a)  

8.

DEDUCTIONS FROM THE INVOICE PRICE WHEN PAYMENT IS MADE WITHIN THE DISCOUNT PERIOD.

(a)  

9.

THE PURPOSE OF CASH DISCOUNT IS TO ENCOURAGE ______ _______

(a)  

10.

POINT OF VIEW OF THE BUYER

a)

Purchase Discount

b)

Sales Discount

11.

POINT OF VIEW OF THE SELLER

a)

Purchase Discount

b)

Sales Discount

12.

PERIOD OF TIME ALLOWED FOR PAYMENT.

a)

Credit Period

b)

Discount Period

13.

PERIOD OF TIME COVERED BY THE DISCOUNT

a)

Credit Period

b)

Discount Period

14.

DEDUCTIONS FROM THE LIST PRICE OR CATALOG PRICE IN ORDER TO ARRIVE AT THE INVOICE PRICE WHICH IS THE AMOUNT ACTUALLY CHARGE TO THE BUYER.

(a)  

15.

FOB

a)

FREE OF BOARD

b)

FREE ON BOARD

c)

FREE ON BILL

d)

FREE OF BILL

16.

ownership of goods purchased is transferred upon shipment of the goods, and therefore, the goods in transit are the property of the buyer.

a)

FOB Shipping Point

b)

FOB Destination

c)

Freight Prepaid

d)

Freight Collect

17.

ownership of goods purchased is transferred only upon receipt of the goods by the buyer at the point of destination and therefore the goods in transit are property of the seller.

a)

FOB Shipping Point

b)

FOB Destination

c)

Freight Prepaid

d)

Freight Collect

18.

this means that the freight charge on the goods shipped is already paid by the seller.

a)

FOB Shipping Point

b)

FOB Destination

c)

Freight Prepaid

d)

Freight Collect

19.

this means that the freight charge on the goods shipped is not yet paid.

a)

FOB Shipping Point

b)

FOB Destination

c)

Freight Prepaid

d)

Freight Collect

20.

Freight Terms: FOB Destination, Freight Prepaid

a)

Seller, Seller

b)

Buyer, Buyer

c)

Seller, Buyer

d)

Buyer, Seller

21.

Freight Terms: FOB Shipping Point, Freight Collect

a)

Seller, Seller

b)

Buyer, Buyer

c)

Seller, Buyer

d)

Buyer, Seller

22.

Freight Terms: FOB Destination, Freight Collect

a)

Seller, Seller

b)

Buyer, Buyer

c)

Seller, Buyer

d)

Buyer, Seller

23.

Freight Terms: FOB Shipping Point, Freight Prepaid

a)

Seller, Seller

b)

Buyer, Buyer

c)

Seller, Buyer

d)

Buyer, Seller

24.

refers to the transportation cost associated with the delivery of goods from a supplier to the receiving entity.

(a)  

25.

refers to the transportation cost associated with the delivery of goods from a supplier to its customers.

(a)  

26.

the sales discounts accounts has accumulated all the sales discount for the period. The account is considered a

(a)  

27.

decrease the amount and physical volume of the goods sold.

a)

Returns

b)

Allowances

c)

Credit Memorandum

28.

decrease the amount but not the physical volume of the goods sold.

a)

Returns

b)

Allowances

c)

Credit Memorandum

29.

formal acknowledgment that the seller has reduced the amount owed by the customer.

a)

Returns

b)

Allowances

c)

Credit Memorandum