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Accounting Ch 11
Reviewing concepts from Ch 11
Question | Answer |
---|---|
What is Accounts Payable? | Vendors (we buy from) |
What is Accounts Receivable? | Customers (we sell to) |
How many columns in an expanded journal? | 11 |
What is the column used in the journal for merchandise? | Purchases Debit |
What is a purchase invoice? | A source document for recording a purchase on account transaction |
What is a partnership? | Two or more persons combine their assets and skills |
What is a merchandising business? | A business that purchases and sells goods |
What are the Special Amount Columns added to the Journal this semester? | Accts Receivable, Sales Tax Payable, Accts Payable, Purchases |
What is the cost of merchandise? | The price a business pays for goods |
What is a vendor? | A business from which merchandise is purchases or supplies or other assets are bought. |
What is Purchases? | The account use for recording the cost of merchandise purchased to sell |
What is the normal balance side for Purchases? | Debit side |
What are the accounts used for purchase of merchandise for cash? | Purchases/Debit, Cash/Credit |
What is purchase of merchandise on account? | Merchandise purchased is to be paid for later |
What is the normal balance side for Accounts Payable? | Credit side |
What are the accounts used for cash payment on account? | Accounts Payable/Debit, Cash/Credit |
What are the accounts used for Merchandise withdrawal? | Owner Drawing/Debit, Purchases/Credit |
If an amount is journalized and posted in error as a debit to Miscellaneous expense instead of Advertising Expense, what is the correcting entry? | Advertising expense/Debit Misc Expense/Credit |