Ms. Cooley Accounting. An organization with the legal rights of a person and which may be owned by...
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Transcript of Ms. Cooley Accounting. An organization with the legal rights of a person and which may be owned by...
![Page 1: Ms. Cooley Accounting. An organization with the legal rights of a person and which may be owned by many persons.](https://reader034.fdocuments.net/reader034/viewer/2022051401/56649efb5503460f94c0d93b/html5/thumbnails/1.jpg)
Chapter 9Test Review
Ms. CooleyAccounting
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An organization with the legal rights of a person and which may be owned by many persons
Corporation
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Each unit of ownership in a corporation
Share of Stock
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Total shares of ownership in a corporation
Capital Stock
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A form prepared by the customer showing the price deduction taken by the customer for returns and allowances
Debit Memorandum
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A merchandising business that sells to those who use or consume the goods
Retail Merchandising Business
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Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable.
Purchases Return
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A cash discount on purchases taken by a customer
Purchases Discount
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An invoice used as a source document for recording a purchase on account transaction
Purchase Invoice
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A deduction that a vendor allows on the invoice amount to encourage prompt payment
Cash Discount
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A journal used to record only one kind of transaction
Special Journal
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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
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TRUE or FALSE?TRUE or FALSE?
The purchases account is increased by a credit and decreased by a debit
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TRUE or FALSE?TRUE or FALSE?
Purchases Returns and Allowances is a contra account to Cost of Merchandise
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TRUE or FALSE?TRUE or FALSE?
Trade discounts normally are recorded in the purchases discount account
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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
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TRUE or FALSE?TRUE or FALSE?
Purchases Discount is increased by a credit entry
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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.
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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