Deck 24: Recording International and Internet Sales

Question 1

Credit card sales on the Internet are handled differently than other credit card sales.

Answer 1

False

Question 2

International transactions are all covered by the same universal commercial laws and the same accounting standards.

Answer 2

False

Question 3

A company's website must be easy to navigate and safe to use.

Answer 3

True

Question 4

It is easy to determine an international customer's financial condition or to take legal action if that customer does not pay.

Question 5

Domestic sales are much simpler than international sales.

Question 6

Selling merchandise to individuals or other businesses within one's own country is generally referred to as domestic sales.

Question 7

The growth of information technology and trading relationships have made doing business internationally more complex.

Question 8

Internet sales must be done in cash rather than by using a credit card.

Question 9

International sales often specify a letter of credit as the method of payment.

Question 10

International sales are not a very important source of revenue for businesses throughout the world.

Question 11

The entry to journalize the receipt of a time draft for an international sale would be recorded in a

A) cash payments journal.
B) cash receipts journal.
C) general journal.
D) sales journal.

Question 12

The entry to journalize an Internet cash sale is a debit to Cash and a credit to

A) International Sales.
B) Time Drafts Receivable.
C) Sales.
D) Internet Sales.

Question 13

The entry to journalize the receipt of a time draft for an international sale would be

A) debit Time Drafts Receivable; credit Cash.
B) debit Time Drafts Receivable; credit Sales.
C) debit Sales; credit Time Drafts Receivable.
D) debit Cash; credit Time Drafts Receivable.

Question 14

The entry to journalize the receipt of cash for the value of a time draft would be recorded in a

A) cash payments journal.
B) cash receipts journal.
C) general journal.
D) sales journal.

Question 15

The entry to journalize the receipt of cash for the value of a time draft would be

A) debit Time Drafts Receivable; credit Cash.
B) debit Time Drafts Receivable; credit Sales.
C) debit Sales; credit Time Drafts Receivable.
D) debit Cash; credit Time Drafts Receivable.

Question 16

The entry to journalize an international cash sale is a debit to Cash and a credit to

A) International Sales.
B) Time Drafts Receivable.
C) Sales.
D) Internet Sales.

Question 17

The entry to journalize an international cash sale would be recorded in a

A) cash payments journal.
B) cash receipts journal.
C) general journal.
D) sales journal.

Question 18

Select the one term that best fits each definitio

-Goods or services shipped out of a seller's home country to a foreign country.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 19

Select the one term that best fits each definitio

-A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount provided stated conditions are met.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 20

Select the one term that best fits each definitio

-A draft payable on sight when the holder presents it for payment.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 21

Select the one term that best fits each definitio

-A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money, usually at a stated time in the future.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 22

Select the one term that best fits each definitio

-Goods or services shipped into the buyer's home country from another country.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 23

Select the one term that best fits each definitio

-A document that details all the terms agreed to by the seller and buyer for a sales transaction.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 24

Select the one term that best fits each definitio

-A statement prepared by the seller of merchandise addressed to the buyer, showing a detailed listing and description of merchandise sold, including prices and terms.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 25

Select the one term that best fits each definitio

-A written, signed, and dated order from one party ordering another party, usually a bank, to pay money to a third party.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 26

Select the one term that best fits each definitio

-A draft that is payable at a fixed or determinable future time after it is accepted.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance

Question 27

Select the one term that best fits each definitio

-A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise.

A) bill of lading
B) commercial invoice
C) contract of sale
D) draft
E) exports
F) imports
G) letter of credit
H) sight draft
I) time draft
J) trade acceptance