Quiz 4: Vendors and Inventory

The Balance Sheet shows the accounting equation.

Bills are entered to record an expense or purchase of assets.

Use products and services to enter consistent transaction descriptions, prices and rates.

In Chapter 4, checking Expense and Sales transactions and the October 30^th trial balance is the starting point for your data.

QBO_Student Name receives bank statements at the end of the quarter.

Using the Bank Statement, go to the Journal to reconcile checking account activity.

Before you reconcile, the check register balance does not include the bank's service charge.

QBO organizes and monitors accounts payable.

When you enter bills for a vendor, Accounts Payable and the vendor are debited.

The account reconciled in Chapter 4 is Accounts Receivable?

The money a company owes to a supplier or vendor is called: A)Accounts payable. B)Accounts receivable. C)Sales. D)Purchases. E)None of these.

__________ are purchases on account from vendors. A)Transfer transactions. B)Accounts receivable transactions. C)Accounts payable transactions. D)Chart of accounts transactions. E)None of these.

The process of bringing the balance of the bank statement and balance of the checking account into agreement is called: A)Accounts payable. B)Accounts receivable. C)Bank reconciliation. D)Audit Log. E)All of these.

__________ report economic information about the business. A)Journal transactions. B)Financial statements. C)Transaction registers. D)Account distributions. E)All of these.

In QBO, an up-to-date record of inventory is maintained and tracked.This is called: A)Perpetual inventory. B)Periodic inventory. C)Sales and cost of goods sold. D)Account payable and customer accounts. E)None of these.

A product that is purchased from vendors for sale to customers is called a/an: A)Account receivable. B)Trial balance. C)Activity transaction. D)Inventory item. E)All of these.

When QBO_Student Name purchases and receives inventory, they are: A)Subtracted from inventory. B)Added to inventory. C)Added to customer accounts. D)Subtracted from customer accounts. E)All of these.

A report that breaks the analysis into operating, investing, and financing activities is called: A)Trial Balance. B)Profit and Loss. C)Balance Sheet. D)Statement of Cash Flows. E)All of these.

The account distribution for purchases of inventory on account is: A)Debit Checking and Merchandise Inventory;credit Accounts Receivable/customer. B)Debit Merchandise Inventory and Accounts Receivable;credit Sales. C)Debit Accounts Receivable/Customer;credit Accounts Payable/vendor. D)Debit Merchandise Inventory;credit Accounts Payable/vendor. E)None of these.

The account distribution for sales of inventory on account is: A)Debit Merchandise Inventory and Accounts Receivable;credit Cost of Goods Sold and Sales. B)Debit Accounts Receivable/customer and Cost of Goods Sold;credit Sales and Merchandise Inventory. C)Debit Accounts Payable/vendor and Cost of Goods Sold;credit Accounts Receivable/customer and Checking. D)None of these.