45. Which of the following statements islare false about the steps in a purchase transaction? * 1. The operating cycle of merchandising besiness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. II. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Before approving the invoice for paymsent, the accounts payable department compates copies of the purchase requinition, purthase order, receiving report and invoice to ensure that quantities, description, and prices aree. O A. Il only O B. Il and I O C. II, III and IV O D. II, III, IV and V

45. Which of the following statements islare false about the steps in a purchase transaction? * 1. The operating cycle of merchandising besiness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. II. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Before approving the invoice for paymsent, the accounts payable department compates copies of the purchase requinition, purthase order, receiving report and invoice to ensure that quantities, description, and prices aree. O A. Il only O B. Il and I O C. II, III and IV O D. II, III, IV and V

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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31. Under a perpetual inventory system, a.a physical count is required to determine cost of merchandise on hand b.increases in inventory resulting from purchases are debited to Purchases c.accounting records continuously disclose the amount of inventory d.the purchases returns and allowances account is credited when goods are returned to vendors
Which of the following should be done first when a customer order is received? Pull the items from the warehouse and prepare them for shipping Check to see if the items orders are available in the warehouse Prepare a bill of lading Approve the customer's credit
III. IDENTIFICATION Directions: Identify the term/s being described. 1. It is the inventory system most applicable to sari-sari stores. 2 It is the business document commonly used as the basis of recording in the cash receipts journal. 3. It refers to the number of days from date of purchase that the supplier has given the business to pay its account. 4. It is the cost associated with transporting goods from seller's to buyer's place of business. 5. It is the business document issued by the buyer whenever there are returns and allowances.
The internal control questionnaire for purchases and accounts payable includes the following questions. Next to each of the questions, indicate the letter of the related transaction assertion.A. OccurrenceB. CompletenessC. AccuracyD. ClassificationE. Cutoff_______ 1. Are vendor's monthly statements reconciled with individual accounts payable accounts?_______ 2. Are all purchases made only on the basis of approved purchase requisitions?_______ 3. Are vendors' invoices listed immediately upon receipt?_______ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?_______ 5. Is the accounts payable customer ledger balanced periodically with the general ledger control account?_______ 6. Does the accounting manual give instructions to date purchase entries on the date of receipt of goods?_______ 7. Are shipping documents authorized and prepared for goods returned to vendors?_______ 8. Is the accounts payable department notified of goods…
A receiving report is filled out when we receive: An inventory shipment from a vendor. Items that a customer is authorized to return from a previous sale. A payment on a customer's account. a and b only. Answer is not the First option!
Compare and contrast a manual accounting system with a computerized accounting system for process vendors transactions. What uses are there for using tje vendor balance summary and AP aging summary reports? Explain why the balance in merchandise inventory different than in accounts payable? Be sure to include at least one reference from an online resource.
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Suppose you are being interviewed for a bookkeeping job for a retailer that uses a perpetual inventory system. The employer feels that the only way to determine whether or not the person being interviewed actually understands how to record transactions, is to ask them to provide an example showing the accounts (no amounts necessary) that would be debited and credited for the following: Purchase merchandise inventory on account. Sale of goods on account Return of part of the merchandise purchased in 1. above to the supplier. Payment to supplier, taking advantage of the discount that was offered. Return of goods by customer for credit. Payment received from customer, taking advantage of discount that was offered.
How does a price list get assigned to a sales order?a. It is copied from the business partner master to the sales order.b. Each warehouse has an associated price list.c. You have to manually assign a price list in the sales order.d. The main price list from the item master record is used in the sales order.
The Inventory module window has journal icons for Select one: O a. inventory sales and inventory purchases b. item assembly and inventory adjustments O c. inventory sales and inventory adjustments O d. all of the above Show Transcribed Text You should use the adjustments journal to record - Select one: O a. adjustments to inventory purchase prices from the supplier as an allowance for damages O b. adjustments to inventory sale prices to customers as an allowance for damages c. adjustments to inventory in stock for damaged goods O d. all of the above
Which of the following statements is true about a purchase order? O a. It is a company's written offer to buy goods. O b. It is recorded as a purchase on its issue date by the purchasing company. O c. It is approved only after a supplier indicates acceptance of an order. O d. It is issued to a Purchasing Department by a Manufacturing Department.