Recording and posting cash receipts transactions. 1) Net purchases are A) Purchases + P

Recording and posting cash receipts transactions. 1) Net purchases are A) Purchases + P

 Recording and posting cash receipts transactions.

 

1) Net purchases are

A) Purchases + Purchases Returns and Allowances.

B) Purchases - Purchases Discount - Purchases Returns and Allowances.

C) Purchases - Freight - Purchases Returns and Allowances.

D) Purchases + Freight-in.

2) When merchandise is bought for resale, which of the following accounts would be increased?

A) Store Equipment

B) Purchases

C) Cash

D) Capital

 

3) Purchases is a(n)

A) cost.

B) asset.

C) liability.

D) revenue.

 

4) A cost account is treated the same as

A) a liability.

B) Capital.

C) a revenue.

D) an expense.

 

5) Jackie's Online Service on April 30 has the following account balances:

Sales$20,000

Sales Returns and Allowances2,000

Purchases14,000

Freight-In1,000

Purchases Returns and Allow.2,000

Purchases Discounts1,400

 

Net purchases for the period are

A) $10,600.

B) $9,600.

C) $12,600.

D) $14,000.

6) Jackie's Online Service on April 30 has the following account balances:

Sales$20,000

Sales Returns and Allowances2,000

Purchases14,000

Freight-In1,000

Purchases Returns and Allow.2,000

Purchases Discounts???

 

If net purchases for the period are $11,000, what is the amount in the Purchases Discounts account?

A) $3,000

B) $4,000

C) 2,000

D) $1,000

 

7) Jackie's Online Service on April 30 has the following account balances:

Sales$20,000

Sales Returns and Allowances2,000

Purchases???

Freight-In1,000

Purchases Returns and Allow. 2,000

Purchases Discounts1,500

 

If net purchases for the period are $14,000, what is the amount of gross purchases?

A) $18,500

B) $15,500

C) $17,500

D) $16,500

 

8) A characteristic of Purchases Returns and Allowances is

A) it has a normal credit balance.

B) it increases when merchandise is returned.

C) it decreases cost.

D) All of the above are correct.

9) Clothes' R Us bought some new clothes for its fashion line and is required to pay the freight costs. The freight terms are

A) F.O.B. destination.

B) F.O.B. shipping point.

C) 2/10, n/30.

D) None of these are correct.

 

10) When the term F.O.B. shipping point is used, title passes

A) when goods reach the halfway point.

B) when goods reach the destination.

C) when goods are shipped.

D) when the buyer unpacks the goods