Homework answers / question archive / 1) Purchased inventory on Terms of 2/5, N30 from ABC Company worth $2,500, what Special Journal must I use?                                                                                                             2) Shrinkage refers to inventory kept not refrigerated for more than 10 days

1) Purchased inventory on Terms of 2/5, N30 from ABC Company worth $2,500, what Special Journal must I use?                                                                                                             2) Shrinkage refers to inventory kept not refrigerated for more than 10 days

Accounting

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1) Purchased inventory on Terms of 2/5, N30 from ABC Company worth $2,500, what Special Journal must I use?                                                                                                            

2) Shrinkage refers to inventory kept not refrigerated for more than 10 days.      True         False

3) When using the Sales Journal, the two columns that show most efficiency are? 

                                                                                      and                                                                                       

                                                                                      and                                                                                       

4 An NSF cheque is caught by the Book side of the Bank Reconciliation.       True      False 

5 How does journalizing adjustments, help to make Financial Statements correct?                                                                                                                    .

6 In the LIFO, FIFO and the Weighted Average Cost methods, which one has the potential for increasing the cost of inventory?                                                         Why?                                                                                                                            

                                                                                                                                                                                                                                                                       

7 Who is likely to pay the freight if the FOB is at the halfway point between the Seller and the Buyer?

1. The accountant or bookkeeper will notice a customer's cheque that hasn't got a proper signature and take to the bank for verification.      True        False

 

8 Calculate a Current Ratio from the following balances:
Supplies $4,000, Furniture $12,000, Unearned Revenue $12000, Equipment $1,300, Rental Expense $3000, Mortgage $2,000, Prepaid Insurance $6,000, Accounts Payable $7,500, Sales Return & Allowances $8,000.   What does the Current Ratio mean?                                                                                                                                                                      

                                                                                                                                                                      

 

9 The Cost Principle is a GAAP that tells the Accountant items in inventory must remain at the Historical Cost and he/she must follow this rule regardless of circumstances.       True       False

 

10 How can the term EOM be used effectively by a smart entrepreneur?                                                                                    

                                                                                                                                                                                                                                                                                                                                                          

12 The accountant forgot to record some work he did for a client when doing an accrual, which account/s will be understated, and which will be overstated; if any?                                                                                       

 

13 When would you use a volume discount?