Acc 291 Week 3

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
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)
The total of the purchases journal money column is posted to the general ledger as a debit to the Purchases account and a credit to the Accounts Payable account. A) True B) False

18. The Purchases Returns and Allowances account is contra to the Purchases account. A) True B) False

19. Which column in the cash payments journal requires posting to both the general ledger and the subsidiary ledger? A) Cash Debit column B) Cash Credit column C) Purchases Discounts Credit column D) Accounts Payable Debit column

20. An invoice in the amount of $100 is dated April 3 with terms 2/10,n/30. Payment is made on April 14. The entry to record the payment is A) debit Accounts Payable $100 and credit Cash $100. B) debit Accounts Payable $98 and credit Cash $98. C) debit Accounts Payable $100, credit Purchases Discounts $2, and credit Cash $98. D) debit Accounts Payable $100 and credit Cash $98.

21. In the purchases journal, single-transaction amounts are posted A) in summary to the accounts payable ledger. B) individually to the Purchases account in the general ledger. C) individually to the accounts payable ledger. D) individually to the Accounts Payable account in the general ledger.

22. A purchase requisition is shipped with the goods from the seller to the buyer. A) True B)