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Chapter 15: Purchases and Cash Payments

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1.
1 point
The account used to record the cost of merchandise purchased during the fiscal period is the ____.
2.
1 point
Shipping terms of ____ means that the buyer pays the shipping charge from the supplier's shipping point.
3.
1 point
A(n) ____ contains invoices to be paid, arranged by their due dates.
4.
1 point
A written offer to a supplier to buy certain items is called a(n) ____.
5.
1 point
Every purchase on account results in a debit to Accounts Payable.
6.
1 point
Purchases Discounts is a contra account of Purchases.
7.
1 point
The ____ is the actual cost to the business of the merchandise sold to customers.
8.
1 point
A(n) ____ is a written request that a certain item or items be ordered.
9.
1 point
The balance of the Purchases Returns and Allowances account increases the Purchases account.
10.
1 point
The Transportation In account is classified as a cost of merchandise account.
11.
1 point
The source document prepared by the buyer to notify the seller that the seller's account is to be decreased is called a(n) ____.
12.
1 point
A purchases returns and allowances transaction is posted only to the accounts payable subsidiary ledger.
13.
1 point
Information placed on an invoice that outlines a set of steps to be followed in processing the invoice for payment is a(n) ____.
14.
1 point
An invoice with terms of 2/10, n/30, dated June 17, must be paid by July 17 in order to take advantage of the cash discount.
15.
1 point
A cash discount that suppliers often offer credit customers for early payment is a(n) ____.
16.
1 point
The Purchases account is a permanent account.
17.
1 point
The amount paid for insurance is called the ____.
18.
1 point
A tickler file contains folders for each day of the month so invoices can be placed in the folders according to their due dates.
19.
1 point
The form that lists the items included in a shipment is called a(n) ____.
20.
1 point
An amount charged by a bank for handling a business's bankcard sales slips is a(n) ____.
21.
1 point
A ledger that contains accounts for all creditors and the amount that is owed to each is the ____.
22.
1 point
When the supplier pays the shipping cost to the buyer's destination or location, the term is called ____.
23.
1 point
Merchandise returned by the buyer to the supplier for full credit is a(n) ____.
24.
1 point
The date an invoice must be paid is called the ____.
25.
1 point
The decrease side of the Purchases Returns and Allowances account is a credit.
26.
1 point
The Purchases account is increased by debits.
27.
1 point
A discount period begins on the date the charge customer receives the invoice.
28.
1 point
The period of time within which an invoice must be paid in order to receive an amount off the invoice price is called a(n) ____.
29.
1 point
A(n) ____ is a document that lists the credit terms and the quantity, description, unit price, and total cost of the items shipped to the buyer.
30.
1 point
A business receives a(n) ____ when it keeps unsatisfactory merchandise, but pays less than the original price.
31.
1 point
Shipping/transportation charges are considered to be a cost of merchandise.
32.
1 point
The Purchases account is used only to record the purchases of merchandise for resale.
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