Need help with 4 multiple choice accounting questions please?

NetherCraft 0

1. If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the

a. Merchandise Inventory account will be increased.

b. Merchandise Inventory account will not be affected.

c. carrier will bear the freight cost.

d. seller will bear the freight cost.

  1. Freight costs paid by a seller on merchandise sold to customers will cause an increase

a. to a contra-revenue account of the seller.

b. in operating expenses for the seller.

c. to the cost of goods sold of the seller.

d. in the selling expense of the buyer.

  1. The one characteristic that all entries recorded in a cash receipts journal have in common is

a. that they all represent collections from customers.

b. a debit to the Cash account.

Also Check This  What is the theme of “Snake” poem by D.H. Lawrence?

c. a credit to the Cash account.

d. that they originate from the sales of merchandise.

  1. The one characteristic that all entries recorded in a multi-column purchases journal have in common is a

a. credit to the Accounts Payable account.

b. credit to the Cash account.

c. debit to the Cash account.

d. debit to the Accounts Payable account.

Please if someone can help me that would be great.

Thank you very much Buz

3 Answers

  • 1) a – FOB shipping point means that title to the inventory transfers to the buyer when it leaves the seller’s premises

    2) b – freight paid on good sold are an operating expense of the seller

    3) b – all entries involve a debit to cash

    4) a – credit to Accounts Payable

  • between the great inquiries to ask a brokerage at the same time as starting a figuring out to purchase and promoting account is the position their server is placed. when you’re figuring out to purchase and promoting futures and that is someplace except the futures floor, there’ll be extra lag in getting an order placed. absolutely everyone who’s traded futures is acquainted with that as low as a a million 2d lag can value you, so imagine if it takes extra time than that. i have been educated on commerce Station yet discover it quite clunky–and expensive. i comprehend distinctive individuals who use Ninja dealer and picture Or Swim yet no one appears ‘married’ to both. Infinity Futures is yet another solid source when you’re fullyyt figuring out to purchase and promoting futures (like i’m). If I were you, i ought to open a inventory figuring out to purchase and promoting account first. outstanding position to lessen your teeth figuring out to purchase and promoting on-line. circulate in futures and overseas funds is, perchance, somewhat too quick for a newbie. My 2 cents’ well worth.

  • A


Leave a Reply

Your email address will not be published. Required fields are marked *