ACCT 2401 Chapter 4 Timed Quiz Study Guide | Financial Accounting Review & Practice
Questions
If there is a difference between the physical count and the perpetual record, the account in
which the difference is recorded is: - ✔✔Cost of Goods Sold.
Physical inventory counts must be done: - ✔✔regardless of inventory system.
If damaged goods are received by the merchandiser and are kept with a reduction in price, the
account to be credited by the merchandiser for the reduction in price under a perpetual
inventory system is: - ✔✔Inventory.
Torres, Inc. purchases $4,800 of inventory on account from Leo Corp. The journal entry to
record this purchase for Torres under a perpetual inventory system is: - ✔✔debit Inventory;
credit Accounts Payable−Leo
If an invoice reads n/10, it means that: - ✔✔the company has 10 days to pay the bill in full.
If an invoice states 2/10, n/45, the 10 refers to the: - ✔✔days in the discount period
Which of the following credit terms allows a discount of 4% if payment is made within 20 days
of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from the
date of the invoice? - ✔✔4/20, n/30
A record to keep the amount owed to each supplier is called a(n): - ✔✔Accounts Payable
subsidiary ledger.
The time period within which an invoice may be paid early to receive a discount is called the: -
✔✔discount period.
Questions
If there is a difference between the physical count and the perpetual record, the account in
which the difference is recorded is: - ✔✔Cost of Goods Sold.
Physical inventory counts must be done: - ✔✔regardless of inventory system.
If damaged goods are received by the merchandiser and are kept with a reduction in price, the
account to be credited by the merchandiser for the reduction in price under a perpetual
inventory system is: - ✔✔Inventory.
Torres, Inc. purchases $4,800 of inventory on account from Leo Corp. The journal entry to
record this purchase for Torres under a perpetual inventory system is: - ✔✔debit Inventory;
credit Accounts Payable−Leo
If an invoice reads n/10, it means that: - ✔✔the company has 10 days to pay the bill in full.
If an invoice states 2/10, n/45, the 10 refers to the: - ✔✔days in the discount period
Which of the following credit terms allows a discount of 4% if payment is made within 20 days
of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from the
date of the invoice? - ✔✔4/20, n/30
A record to keep the amount owed to each supplier is called a(n): - ✔✔Accounts Payable
subsidiary ledger.
The time period within which an invoice may be paid early to receive a discount is called the: -
✔✔discount period.
