Self Assessment Quizzes

CHAPTER 15: Section 3 Analyzing and Recording Cash Payments

	1.	When the supplier pays the shipping cost to the buyer`s destination or location it is called

		a.	FOB destination
		b.	FOB shipping point
		c.	FOB supplier
		d.	shipping charge

	2.	Bankcard fee is

		a.	a revenue account
		b.	an expense account
		c.	a liability account
		d.	an asset account

	3.	The cost of insurance protection is called

		a.	a policy
		b.	an installment
		c.	a premium
		d.	a loan

	4.	To record the cash payment of a shipping charge, the journal entry is

		a.	debit Accounts Payable and credit Transportation In
		b.	debit Transportation In and credit Accounts Payable
		c.	debit Cash in Bank and credit Transportation In
		d.	debit Transportation In and credit Cash in Bank

	5.	The purchase of insurance is recorded in

		a.	Insurance Expense
		b.	Prepaid Insurance
		c.	Supplies
		d.	Miscellaneous Expense

	6.	Insurance, when purchased, is considered

		a.	an expense
		b.	an asset
		c.	a liability
		d.	owner`s equity