FNSACC321-322-421 Quiz 7 part 2 of 2

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Monarch Institute *

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321

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Business

Date

Jan 9, 2024

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3

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FNSACC321-322-421 Quiz 7 part 2 of 2 Question 16 Which of the following is not a tool to assess a customer's credit worthiness? Select one: a. Requesting credit references b. Checking the customer's website c. Performing a credit check through a credit reporting agency d. Reviewing copies of their financial statements Question 17 The source document that provides evidence of a credit sale is a: Select one: a. supplier tax invoice b. supplier credit note c. cheque butt d. customer tax invoice Question 18 The source document that provides evidence of a credit purchase is a: Select one: a. bank statement b. cheque butt c. customer tax invoice d. supplier tax invoice Question 19 There are two recognised types of inventory systems: Select one: a. Last in last out and Average b. Periodic and Perpetual c. First in first out and Last in last out d. Average and First in first out Question 20 A Payables Subsidiary Ledger: Select one: a. shows the amounts owing by customers b. is a main account in the General Ledger c. is a sub-account in the General Ledger d. enables the business to track amounts owing to its various individual suppliers Question 21 When posting a general journal for a credit sale transaction, what is recorded in the "Details" column of the Accounts Receivable ledger account? Select one: a. Debtors control b. Bank c. Expense d. Sales, GST Question 22
When posting a general journal for a credit purchase transaction, the entry to the GST Paid account would be a: Select one: a. Debit and credit b. No entry c. Debit d. Credit Question 23 When posting the Purchases Returns and Allowances Journal for the month, the date used is: Select one: a. the date of each transaction b. the date of the last transaction c. the end of the month d. the first of the month Question 24 Businesses that use the cash accounting system are usually small businesses that trade mostly in cash and do not have credit customers. Select one: True False Question 25 An adjustment note is a source document for both the supplier and the buyer. Select one: True False Question 26 The Periodic Inventory System is the inventory system used by the majority of large retailers. Select one: True False Question 27 Payments to Creditors (Accounts Payable) do not impact GST accounts. Select one: True False Question 28 Creditor (Accounts Payable) subsidiary ledgers normally have credit balances. Select one: True False Question 29 An Accounts Receivable (Debtors) subsidiary ledger normally has a credit balance. Select one: True False
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