Chapter 9 Test Review
description
Transcript of Chapter 9 Test Review
![Page 1: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/1.jpg)
Chapter 9Test Review
Ms. CooleyAccounting
![Page 2: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/2.jpg)
An organization with the legal rights of a person and which may be owned by many persons
Corporation
![Page 3: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/3.jpg)
Each unit of ownership in a corporation
Share of Stock
![Page 4: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/4.jpg)
Total shares of ownership in a corporation
Capital Stock
![Page 5: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/5.jpg)
A form prepared by the customer showing the price deduction taken by the customer for returns and allowances
Debit Memorandum
![Page 6: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/6.jpg)
A merchandising business that sells to those who use or consume the goods
Retail Merchandising Business
![Page 7: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/7.jpg)
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable.
Purchases Return
![Page 8: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/8.jpg)
A cash discount on purchases taken by a customer
Purchases Discount
![Page 9: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/9.jpg)
An invoice used as a source document for recording a purchase on account transaction
Purchase Invoice
![Page 10: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/10.jpg)
A deduction that a vendor allows on the invoice amount to encourage prompt payment
Cash Discount
![Page 11: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/11.jpg)
A journal used to record only one kind of transaction
Special Journal
![Page 12: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/12.jpg)
TRUE or FALSE?TRUE or FALSE?When several journals are used, an abbreviation is used in the Post.Ref. column of a ledger to show the journal from which the posting is made
![Page 13: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/13.jpg)
TRUE or FALSE?TRUE or FALSE?The purchases account is increased by a credit and decreased by a debit
![Page 14: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/14.jpg)
TRUE or FALSE?TRUE or FALSE?Purchases Returns and Allowances is a contra account to Cost of Merchandise
![Page 15: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/15.jpg)
TRUE or FALSE?TRUE or FALSE?Trade discounts normally are recorded in the purchases discount account
![Page 16: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/16.jpg)
TRUE or FALSE?TRUE or FALSE?The terms of sale 1/10, n/30 mean that the customer may deduct 1% of the invoice amount if payment is made within 30 days of the invoice date
![Page 17: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/17.jpg)
TRUE or FALSE?TRUE or FALSE?Purchases Discount is increased by a credit entry
![Page 18: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/18.jpg)
TRUE or FALSE?TRUE or FALSE?If the actual petty cash on hand is $53.00 but the records show that $55.00 should be on hand, the petty cash fund is said to be over.
![Page 19: Chapter 9 Test Review](https://reader036.fdocuments.net/reader036/viewer/2022062301/56815bef550346895dc9df33/html5/thumbnails/19.jpg)
TRUE or FALSE?TRUE or FALSE?When purchases are recorded at their cost, including any related shipping costs and taxes, the Historical Cost accounting concept is being applied