AAMI Accounting 2 Final Prep with all Correct & 100%
Verified Answers| Actual Complete Exam| Already
Graded A+
Is "accounts receivable" a permanent or temporary account? ✔Correct Answer-Permanent
Is "Accounts Payable" a permanent or a temporary account? ✔Correct Answer-Permanent
Which account gets closed first at the end of the accounting cycle ✔Correct Answer-Revenue
True or False? Purchase returns and allowances increase the cost of merchandise purchased
✔Correct Answer-False, it decreases
Purchases of merchandise for resale are debuted to a cost account called? ✔Correct Answer-
Merchandise purchases
True or False? When the seller collects sales tax, this is considered an asset? ✔Correct Answer-
False, it is a liability to the seller
Sales returns and allowances have a(n) _________effect on Owner's Equity ✔Correct Answer-
Negative
Freight is an______________ ✔Correct Answer-Expense
When making a purchase by cash that purchase is entered into the purchase journal ✔Correct
Answer-False
Merchandise purchases for resale are entered as DEBITS ✔Correct Answer-True
A special journal is one that is ✔Correct Answer-used for one type of transaction only
The left side of every account is the____________side ✔Correct Answer-credit
Freight in is a Liability ✔Correct Answer-false
The Purchase Journal contains entries for Sales Tax Payable ✔Correct Answer-False
Merchandise purchase's for resale are entered as ________ ✔Correct Answer-Expenses
When closing accounts, the Drawing Account gets closed to: ✔Correct Answer-Capital
When paying cash for merchandise, Accounts Payable is debited or credited or neither. ✔Correct
Answer-neither
The proper sequence for closing accounts is: ✔Correct Answer-revenue, expense and drawing
Income Summary account represents ✔Correct Answer-net income
Verified Answers| Actual Complete Exam| Already
Graded A+
Is "accounts receivable" a permanent or temporary account? ✔Correct Answer-Permanent
Is "Accounts Payable" a permanent or a temporary account? ✔Correct Answer-Permanent
Which account gets closed first at the end of the accounting cycle ✔Correct Answer-Revenue
True or False? Purchase returns and allowances increase the cost of merchandise purchased
✔Correct Answer-False, it decreases
Purchases of merchandise for resale are debuted to a cost account called? ✔Correct Answer-
Merchandise purchases
True or False? When the seller collects sales tax, this is considered an asset? ✔Correct Answer-
False, it is a liability to the seller
Sales returns and allowances have a(n) _________effect on Owner's Equity ✔Correct Answer-
Negative
Freight is an______________ ✔Correct Answer-Expense
When making a purchase by cash that purchase is entered into the purchase journal ✔Correct
Answer-False
Merchandise purchases for resale are entered as DEBITS ✔Correct Answer-True
A special journal is one that is ✔Correct Answer-used for one type of transaction only
The left side of every account is the____________side ✔Correct Answer-credit
Freight in is a Liability ✔Correct Answer-false
The Purchase Journal contains entries for Sales Tax Payable ✔Correct Answer-False
Merchandise purchase's for resale are entered as ________ ✔Correct Answer-Expenses
When closing accounts, the Drawing Account gets closed to: ✔Correct Answer-Capital
When paying cash for merchandise, Accounts Payable is debited or credited or neither. ✔Correct
Answer-neither
The proper sequence for closing accounts is: ✔Correct Answer-revenue, expense and drawing
Income Summary account represents ✔Correct Answer-net income
