Self Assessment Quizzes

CHAPTER 15: Section 2 Analyzing and Recording Purchases on Account

	1.	A notice to suppliers of a return or to request an allowance is called

		a.	a debit memorandum
		b.	a credit memorandum
		c.	a purchase allowance
		d.	a discount memorandum

	2.	A file used as a reminder of invoice due dates is called a

		a.	tickler file
		b.	tickle me Elmo
		c.	reminder folder
		d.	due date file

	3.	When a business keeps less than satisfactory merchandise and pays a reduced price it is called a

		a.	purchase discount
		b.	debit memorandum
		c.	purchase allowance
		d.	a subsidiary return

	4.	The date an invoice is to be paid is called its

		a.	payment date
		b.	arrival date
		c.	date of entry
		d.	due date

	5.	To record a purchase return the accounts affected would be

		a.	Accounts Payable and Purchases Returns and Allowances
		b.	Accounts Payable, Accounts Payable subsidiary and Purchases Returns and Allowances
		c.	Accounts Payable, Accounts Payable subsidiary and Sales
		d.	Accounts Receivable, Accounts Receivable subsidiary and Sales

	6.	The journal entry for the purchase of merchandise on account is

		a.	debit Accounts Payable and credit Purchases
		b.	debit Purchases and credit Accounts Payable
		c.	debit Purchases and credit Accounts Receivable
		d.	debit Accounts Receivable and credit Purchases

	7.	Purchases on account are recorded in the

		a.	accounts receivable subsidiary ledger
		b.	accounts payable subsidiary ledger
		c.	general ledger
		d.	purchase order file