Page 4 of 10 13. Goodwill can be recorded a. When customers keep returning because they are satisfied with the company's products. b. When the company acquires a good location for its business. c. When the company has exceptional management. d. Only when there is an exchange transaction involving the purchase of an entire business. Page 4 of 11

Page 4 of 10 13. Goodwill can be recorded a. When customers keep returning because they are satisfied with the company's products. b. When the company acquires a good location for its business. c. When the company has exceptional management. d. Only when there is an exchange transaction involving the purchase of an entire business. Page 4 of 11

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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1. Please explain whether the item is an example of IPE from a transaction process, and 2. Please explain why or why not in some level of detail: Item IPE? Why or why not? A. A payroll exception report prepared by ADP B. A report containing new vendors approved by the purchasing department C. An unpaid vendor invoice D. A list of product liability claims from customers E. The allocation of overhead to various products in production F. Warranty conditions provided to customers on sales contracts G. The bank reconciliation prepared by the Company's bank
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1. When merchandise is shipped FOB (free on board) Destination: Select one: A. The buyer pays for the shipment. B. Title passes to buyer when merchandise is shipped. C. Title passes to buyer when merchandise is delivered. D. None of the above 2. Which of the following is NOT an element of internal control? Select one: A. Control environment B. Control procedures C. Management risk D. Risk assessment 3. In a merchandising business, when merchandise sold on account, a journal entry is booked to Debit to Accounts Receivable and Credit to Sales. In addition: Select one: A. Cost of goods sold is debited and Merchandise inventory is credited. B. Cost of goods sold is credited and Merchandise inventory is debited. C. Accounts Receivable is credited and Sales is debited. D. None of the above. 4. One of the primary objectives of inventory controls is: Select one: A. Safeguarding inventory from damage or theft. B. Selling inventory at an affordable price C. Both A &…
Which of the following accounts is used in merchandising but not in service type of business? a. allowance for bad debts b. purchase discounts c. depreciation expense d. sales returns and allowances
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Question 2 The purchase order, usually in writing, is a legal document that is... Select one: An offer to buy. All the answers are correct. Not enforceable if it is not in writing. A binding agreement between client and supplier.
QUESTION 3 The following type of marketing involves sending out mails, fliers, testers, and DVDs to consumers? a. Direct-response marketing b. Direct-mail marketing c. Direct-mobile marketing d. Kiosk marketing e. Online marketing
llar unless stated otherwise. E5-18 Using accounting vocabulary Match the accounting terms with the corresponding definitions. Learn 1. Credit Terms a. The cost of the merchandise inventory that the business has sold to customers. 2. FOB Destination b. An amount granted to the purchaser as an incentive to keep goods that are not "as ordered." c. A type of merchandiser that buys merchandise either from a manufacturer or a wholesaler and then sells those goods to 3. Invoice 4. Cost of Goods Sold 5. Purchase Allowance consumers. d. A situation in which the buyer takes ownership (title) at the delivery destination point. e. A type of merchandiser that buys goods from manufacturers and then sells them to retailers. 6. FOB Shipping Point 7. Wholesaler 8. Purchase Discount f. A discount that businesses offer to purchasers as an incentive for early payment. 9. Retailer g. A situation in which the buyer takes title to the goods after the goods leave the seller's place of business. h. The terms…
Question 1-4
Ways on how the law of sales and negotiable instrument can be applied in daily lives.
Question 20 The acquisition and expenditure cycle involves a number of important functions including: purchasing, receiving, accounts payable and recording or maintaining the fixed asset ledgers. Having the purchasing function pay vendor invoices would increase efficiency and not cause a separation of duties problem. True False
23- When the goods are sent on consignment, the goods are recorded in the books of a. Business as a sale of goods b. Nobody till the goods are sold c. Business who have sent the goods, as closing stock d. Business have possession of the goods as closing stock