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The Accounts Payable account in the general ledger is known as a A) suspense account. B) nominal account. C) controlling account. D) temporary account.

2. A schedule of accounts payable includes a list of A) customers. B) both creditors and customers. C) neither creditors nor customers. D) creditors.

3. A purchase of store supplies on account is recorded as a debit to the Purchases account and a credit to the Accounts Payable account. A) True B) False

4. A subsidiary ledger containing only creditors’ accounts is called the accounts payable ledger. A) True B) False

5. Fast Lane Automotive received merchandise that had an invoice value of $6,500. The journal entry to record the receipt of these goods is A) debit Purchases $6,500 and credit Accounts Payable $6,500. B) debit Purchases $6,500 and credit Supplies $6,500. C) debit Accounts Payable $6,500 and credit Cash $6,500. D) debit Supplies $6,500 and credit Accounts Payable $6,500.

6. The journal entry to record Springhill Office Supply buying $2,100 of merchandise on account is A) debit Office Supplies $2,100 and credit Accounts Payable $2,100. B) debit Purchases $2,100 and credit Accounts Payable $2,100. C) debit Accounts Payable $2,100 and Credit Purchases $2,100. D) debit Purchases $2,100 and credit Cash $2,100.

7. The purchasing agent prepares a receiving report indicating the specific goods received and the quantity of goods. A) True B) False

8. Trade discounts are recorded in the accounting records of both the buyer and the seller. A) True B) False

9. How is the money column of the purchases journal posted? A) By debiting the Cash account and crediting the Purchases account B) By debiting the Purchases account and crediting the Accounts Payable account C) By debiting the Purchases account and crediting the Cash account D) By debiting the Purchases Returns and Allowances account and crediting the Accounts Payable account

10. After a purchase order is approved and goods have been...
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