Deck 4: Vendors and Inventory

Question 1

____________________________________report economic information about the business.

A)Journal transactions.
B)Financial statements.
C)Transaction registers.
D)Account distributions.
E)All.

Answer 1

B

Question 2

When you enter bills for a vendor,Accounts Payable and the vendor are debited.

Answer 2

False

Question 3

The account distribution for sales of inventory on account is:

A)Debit Merchandise Inventory and Accounts Receivable; credit Cost of Goods Sold and Sales.
B)Debit Accounts Receivable/customer and Cost of Goods Sold; credit Sales and Merchandise Inventory.
C)Debit Accounts Payable/vendor and Cost of Goods Sold; credit Accounts Receivable/customer and Checking.
D)None.

Answer 3

B

Question 4

Use products and services to enter consistent transaction descriptions,prices and rates.

Question 5

The account distribution for purchases of inventory on account is:

A)Debit Checking and Merchandise Inventory; credit Accounts Receivable/customer.
B)Debit Merchandise Inventory and Accounts Receivable; credit Sales.
C)Debit Accounts Receivable/Customer; credit Accounts Payable/vendor.
D)Debit Merchandise Inventory; credit Accounts Payable/vendor.
E)None.

Question 6

_______________________________________are purchases on account from vendors.

A)Transfer transactions.
B)Accounts receivable transactions.
C)Accounts payable transactions.
D)Chart of accounts transactions.
E)None.

Question 7

In QBO,an up-to-date record of inventory is maintained and tracked.This is called:

A)Perpetual inventory.
B)Periodic inventory.
C)Sales and cost of goods sold.
D)Account payable and customer accounts.
E)None

Question 8

Cash basis accounting means you count income or expenses as soon as you invoice or receive a bill and before you actually receive or pay money.

Question 9

Cloud_Ware receives bank statements at the end of the quarter.

Question 10

QBO organizes and monitors accounts payable.

Question 11

Before you reconcile,your check register balance does not include the bank's service charge.

Question 12

The Balance Sheet shows the accounting equation.

Question 13

Using the Bank Statement,go to the Transaction Journal to reconcile checking account activity.

Question 14

The money a company owes to a supplier or vendor is called:

A)Accounts payable.
B)Accounts receivable.
C)Sales.
D)Purchases.
E)None.

Question 15

Bills are entered to record an expense or purchase of assets.

Question 16

The process of bringing the balance of the bank statement and balance of the checking account into agreement is called:

A)Accounts payable.
B)Accounts receivable.
C)Bank reconciliation.
D)Debits and credits.
E)All.

Question 17

In Chapter 4,checking the October 30th trial balance is the starting point for your data.

Question 18

In QBO when Cloud_Ware purchases and receives inventory,they are:

A)Subtracted from inventory.
B)Added to inventory.
C)Added to customer accounts.
D)Subtracted from customer accounts.
E)All.

Question 19

A report that breaks the analysis into operating,investing,and financial activities is called:

A)Trial Balance.
B)Profit and Loss.
C)Balance Sheet.
D)Statement of Cash Flows.
E)All.

Question 20

A product that is purchased from vendors for sale to customers is called a/an:

A)Account receivable.
B)Trial balance.
C)Activity transaction.
D)Inventory item.
E)All.