5 Interactive Quiz B

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Interactive Quiz B http://highered.mcgraw-hill.com/sites/0072996536/student_view0/chapter5/interactive_quiz_b.html[6/22/2010 6:39:37 PM] Interactive Quiz B (See related pages) Results Reporter Out of 30 questions, you answered 13 correctly with a final grade of 43% 13 correct (43%) 17 incorrect (57%) 0 unanswered (0%) Your Results: The correct answer for each question is indicated by a . 1 CORRECT A perpetual inventory system updates the Merchandise Inventory account after each purchase or sale of inventory. A) True B) False Feedback: The perpetual inventory system updates the Merchandise Inventory account after each purchase and sale of inventory. INCORRECT When a merchandiser buys inventory on credit and takes advantage of any credit terms it is called a sales discount; when a customer buys our merchandise on credit and takes advantage of the credit terms we offer, it is called a purchase discount. A) True B) False Feedback: Purchase discounts occur when the entity purchases inventory on credit and takes advantage of any discount terms; sales discounts occur when our customers buy goods on credit from us and take advantage of any discount terms. INCORRECT A customer buys an inventory item from us on credit but it is the wrong color. Instead of returning the item to us, we agree to reduce the customer's account payable balance by $20. This transaction is called a purchase allowance. A) True B) False Feedback: Since it is one of our customers returning the item, it is called a sales allowance, not a purchase allowance. 4 CORRECT FOB shipping point means that the buyer must pay any necessary shipping costs and must assume any responsibility for lost or damaged goods. A) True B) False Feedback: FOB shipping point means that the buyer must pay any necessary shipping costs and must assume any responsibility for lost or damaged goods. 5 CORRECT When a company is taking its physical inventory at the end of the year, goods still in transit shipped FOB shipping point will be included in the buyer's inventory and goods still in transit shipped FOB destination will not be included in the buyer's inventory. A) True B) False Feedback: It is true that goods still in transit shipped FOB shipping point will be included in the buyer's inventory and goods still in transit shipped FOB destination will not be included in the buyer's inventory. 6 CORRECT Although the perpetual inventory method and the periodic inventory method require different journal entries and procedures, the procedures for recording sales returns, sales discounts, and sales allowance are the same under both systems. A) True B) False Feedback: Course-wide Content MH Enhanced Cartridge Sample Study Guide Working Paper Sample Generic Working Papers Student ALEKS Video Library Cogg Hill Practice Set Student Learning Tools NetTutor Appendices Text Updates Tech Support Chapter 5 Quizzes Interactive Quiz A Interactive Quiz B More Resources Glossary Flashcards PowerPoint Presentations Narrated Slides Excel Templates BusinessWeek Articles More Taking it to the . ..
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This note was uploaded on 08/01/2010 for the course ACC 101 taught by Professor Layvand during the Spring '09 term at Thomas Edison State.

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5 Interactive Quiz B - Interactive Quiz B Home > Chapter...

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