Deck 7: Payables and Purchases: Inventory, Bills, Payments, and Discounts

Question 1

A credit card purchase is recorded on a(n) form.

A)Invoice
B)Bill
C)Expense
D)Credit Card

Answer 1

C

Question 2

The Sales Tax Liability report is prepared in the .

A)Manage Payables section of Reports
B)Review Expenses and Purchases section of Reports
C)Accountant Reports section of Reports
D)Sales Tax Center

Answer 2

D

Question 3

A bill may be paid using cash, a check, or a company credit card.

Answer 3

True

Question 4

When you do not receive all the inventory items ordered, the original purchase order remains open for the remaining items.

Question 5

A Purchase Order is prepared to order inventory items to sell.

Question 6

When recording an early payment discount on inventory items, you use the account.

A)Purchases Discount
B)Merchandise Discount
C)Sales Discount
D)Discount Expense

Question 7

The Payee is the person or company making a payment.

Question 8

A purchase return paid for by credit card is recorded as a Vendor Credit.

Question 9

If you ordered an inventory item, 15 cans of dog food at $2.00 per can and the sales tax rate is 8 percent, you would pay in sales tax.

A)$32.40
B)$0.00
C)$2.40
D)None of the above

Question 10

When taking an early payment discount, the discount amount is recorded on the .

A)Bill
B)Make Payment
C)Check
D)Discount Form