Acct 300 Quiz
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
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