Deck 7: Payables, Purchases, and Inventory

Question 1

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

Answer 1

False

Question 2

The Payee is the person or company making a payment.

Answer 2

False

Question 3

When you do not receive all of the inventory items ordered, you prepare a Purchase Order for the amount on backorder.

Answer 3

True

Question 4

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 5

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

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

Question 6

If you ordered an inventory item, 10 cans of dog food at $2.00 per can and the sales tax rate is 8 percent, you would pay in sales tax.

A) $1.60
B) $21.60
C) $0.00
D) None of the above

Question 7

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

Question 8

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

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

Question 9

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

Question 10

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