Accounting Questions and Graded Answers.
The discount period is the time, (before/between) the invoice date and a specified date on which
the payment amount owed can be Unavailable (increased/reduced) because of early payment. -
between; reduced
Completing the trial balance section in four steps - Enter the general ledger account
names.
Transfer the general ledger account balances to the debit and credit column of the trial balance
section.
Total the debit and credit columns to prove that the trial balance is in the balance.
Place a double rule under each trial balance column to show that the work in that column is
complete
merchandise - goods that a merchandising business purchases to sell
merchandiser - earns net income by buying and selling merchandise
Net Income Equation - Net Income = Revenues - Expenses
Cost of Goods Sold - the amount of money a firm spent to buy or produce the products it
sold during the period to which the income statement applies
Merchandise Inventory - The goods a business has on hand for sale to customers
Operating Cycle - The time span during which cash is paid for goods and services, which
are then sold to customers from whom the business collects cash.
, perpetual inventory system - A detailed inventory system in which a company maintains
the cost of each inventory item, and the records continuously show the inventory that should be
on hand.
periodic inventory system - Inventory system that periodically adjusts for purchases and
sales of inventory at the end of the reporting period based on a physical count of inventory on
hand
Merchandise consists of___________that a company acquires to resell
to______________________ - products, goods, items, inventory, or assets
customers, consumers, or buyers
X-Mart purchased $300 of merchandise on account. Demonstrate the journal entry to record this
transaction, assuming the perpetual inventory system is used. - Debit Merchandise
Inventory $300; credit Accounts Payable $300.
true or false: Merchandise inventory is reported on the statement - false;It is reported on
the balance sheet.
true or false :Accounts receivable is included on the statement. - false; It is on the balance
sheet
true or false: - false: Net income is the last line.
Merchandise inventory can be described as: - products that a company owns and intends
to sell.
an account increased with a debit.
an asset account.
an account appearing on a balance sheet of a merchandiser.
The discount period is the time, (before/between) the invoice date and a specified date on which
the payment amount owed can be Unavailable (increased/reduced) because of early payment. -
between; reduced
Completing the trial balance section in four steps - Enter the general ledger account
names.
Transfer the general ledger account balances to the debit and credit column of the trial balance
section.
Total the debit and credit columns to prove that the trial balance is in the balance.
Place a double rule under each trial balance column to show that the work in that column is
complete
merchandise - goods that a merchandising business purchases to sell
merchandiser - earns net income by buying and selling merchandise
Net Income Equation - Net Income = Revenues - Expenses
Cost of Goods Sold - the amount of money a firm spent to buy or produce the products it
sold during the period to which the income statement applies
Merchandise Inventory - The goods a business has on hand for sale to customers
Operating Cycle - The time span during which cash is paid for goods and services, which
are then sold to customers from whom the business collects cash.
, perpetual inventory system - A detailed inventory system in which a company maintains
the cost of each inventory item, and the records continuously show the inventory that should be
on hand.
periodic inventory system - Inventory system that periodically adjusts for purchases and
sales of inventory at the end of the reporting period based on a physical count of inventory on
hand
Merchandise consists of___________that a company acquires to resell
to______________________ - products, goods, items, inventory, or assets
customers, consumers, or buyers
X-Mart purchased $300 of merchandise on account. Demonstrate the journal entry to record this
transaction, assuming the perpetual inventory system is used. - Debit Merchandise
Inventory $300; credit Accounts Payable $300.
true or false: Merchandise inventory is reported on the statement - false;It is reported on
the balance sheet.
true or false :Accounts receivable is included on the statement. - false; It is on the balance
sheet
true or false: - false: Net income is the last line.
Merchandise inventory can be described as: - products that a company owns and intends
to sell.
an account increased with a debit.
an asset account.
an account appearing on a balance sheet of a merchandiser.
