Question

1. In the terms 2/10, n30, what does the 10 represent?

   	a.	closing period
   	b.	discount period
   	c.	due date
   	d.	credit period

1 points   

QUESTION 22

1. When assets are purchased, they are recorded at

   	a.	market value
   	b.	cash paid at time of purchase
   	c.	normal sales price
   	d.	cost

1 points   

QUESTION 23

1. In what journal does the seller of merchandise record the payment?

   	a.	cash disbursements journal
   	b.	purchase journal
   	c.	cash receipts journal
   	d.	sales journal

1 points   

QUESTION 24

1. The capital balance on the adjusted trial balance equals the

   	a.	beginning capital balance
   	b.	beginning capital balance plus net income
   	c.	ending capital balance
   	d.	beginning capital balance plus investments this period

1 points   

QUESTION 25

1. When unearned revenue is earned, what journal entry is made?

   	a.	debit revenue, credit unearned revenue
   	b.	debit unearned revenue, credit revenue
   	c.	debit unearned revenue, credit A/R
   	d.	debit A/R, credit revenue

1 points   

QUESTION 26

1. Allocating the cost of an asset over its expected useful life is called

   	a.	residual value
   	b.	book value
   	c.	A/D
   	d.	depreciation

1 points   

QUESTION 27

1. How is net income calculated for a merchandising business?

   	a.	gross sales minus C/G/S minus operating expenses
   	b.	gross sales minus C/G/S
   	c.	net sales minus operating expenses
   	d.	net sales minus C/G/S minus operating expenses

1 points   

QUESTION 28

1. What is the definition of equity?

   	a.	all are equity
   	b.	assets - liabilities
   	c.	amount that belongs to the owner
   	d.	residual amount

1 points   

QUESTION 29

1. The accounts payable subsidiary ledger must reconcile to

   	a.	A/R ledger
   	b.	A/P ledger
   	c.	A/R control account
   	d.	A/P control account

1 points   

QUESTION 30

1. Net sales for a merchandiser equals

   	a.	net income minus C/G/S
   	b.	gross sales minus purchase discounts minus purchase returns and allowances
   	c.	gross sales minus sales discounts minus sales returns and allowances
   	d.	gross sales minus C/G/S

Answer 1