Acct 300 Quiz

Topics: Balance sheet, Inventory, Accrual Pages: 6 (936 words) Published: February 22, 2014
Distinguish between internal and external sources of funds. Do corporations rely more on external or internal funds as sources of financing? Question 1 of 20 5.0/ 5.0 Points

Which transaction would be recorded in a cash basis system of accounting? A.Purchase of equipment by signing a note
B.Purchase of supplies on credit
C.Sale of goods against a note
Correct D.Sale of goods for cash

Answer Key: D

Question 2 of 20 0.0/ 5.0 Points

The credit terms of a sale are normally indicated on a(n):
A.purchase order.
B.invoice.
Incorrect C.bill of lading.
D.check.

Answer Key: B

Question 3 of 20 5.0/ 5.0 Points

Using accrual accounting, expenses are recorded and reported only: Correct A.when they are incurred, whether or not cash is paid. B.when they are incurred and paid at the same time.
C.if they are paid before they are incurred.
D.if they are paid after they are incurred.

Answer Key: A

Question 4 of 20 5.0/ 5.0 Points

Which of the following statements is true?
Correct A.The revenue activities of a service business involve providing services to customers. B.The revenue activities of a merchandising business involve the building of a product. C.The revenue activities of a service business involve the building of a product. D.The revenue activities of a merchandising business involve providing services to customers.

Answer Key: A

Question 5 of 20 5.0/ 5.0 Points

Sales discounts are granted by the seller to customers for payment at the end of the month. Correct
A. True
B. False

Answer Key: False

Question 6 of 20 5.0/ 5.0 Points

If payment is due by the end of the month in which the sale is made, the invoice terms are expressed as n/eom.Correct

A. True
B. False

Answer Key: True

Question 7 of 20 5.0/ 5.0 Points

Since merchandise inventory is normally sold within a year, how is it reported on the balance sheet? A.As a revenue
B.As the cost of merchandise sold
C.It does not appear on the balance sheet
Correct D.As a current asset

Answer Key: D

Question 8 of 20 5.0/ 5.0 Points

Using a perpetual inventory system, the purchase of $30,000 of merchandise on account would include a(n): A.increase in Sales.
Correct B.increase in Merchandise Inventory.
C.decrease in Merchandise Inventory.
D.decrease in Sales.

Answer Key: B

Question 9 of 20 5.0/ 5.0 Points

Merchandise is ordered on November 12; the merchandise is shipped by the seller and the invoice in prepared, dated, and mailed by the seller on November 15; the merchandise is received by the buyer on November 17; the transaction is recorded in the seller’s accounts on November 15. If the credit terms are 1/10, n/30, the discount period begins with what date? A.November 12

Correct B.November 15
C.November 17
D.November 22

Answer Key: B

Question 10 of 20 5.0/ 5.0 Points

The merchandise inventory account is found on the balance sheet.Correct

A. True
B. False

Answer Key: True

Question 11 of 20 5.0/ 5.0 Points

Accrued expenses are expenses that have been incurred and paid. Correct
A. True
B. False

Answer Key: False

Question 12 of 20 5.0/ 5.0 Points

Under the cash basis of accounting, expenses are recorded when paid.Correct

A. True
B. False

Answer Key: True

Question 13 of 20 5.0/ 5.0 Points

Land is an example of a current asset.
Correct
A. True
B. False

Answer Key: False

Question 14 of 20 5.0/ 5.0 Points

When someone purchases merchandise and incurs the cost of transportation, these costs of purchasing inventory are added to the cost of the inventory.Correct

A. True
B. False

Answer Key: True

Question 15 of 20 5.0/ 5.0 Points

Liabilities that will not be due for more than one year are called long-term liabilities.Correct

A. True
B. False

Answer Key: True...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • quiz Essay
  • ACCT 640 QUIZ 2 Essay
  • ACCT Essay
  • ACCT Project Essay
  • ACC 300 Final Exam Essay
  • ACC 300 Final Exam Essay
  • Quiz Essay
  • ACC 300 Final Exam Essay

Become a StudyMode Member

Sign Up - It's Free