A buyer received an invoice for P 6,000 dated June 10. If terms are 2/10, n/30, and the buyer paid the invoice within the discount period, what amount will the seller receive? P 6,000 P 5,880 P 4,800 P 120
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
- A buyer received an invoice for P 6,000 dated June 10. If terms are 2/10, n/30, and the buyer paid the invoice within the discount period, what amount will the seller receive? P 6,000
- P 5,880
- P 4,800
- P 120
- The purchases discount account is a contra account to
- Account payable
- Purchases
- Sales
- Sales discount
- When a seller of merchandise allowed a customer a reduction from the original price for defective goods, the seller will issue to the customer a
- Credit memorandum
- Debit memorandum
- Official receipt
- Sales invoice
- When the seller advances the transportation cost and the terms of sales are FOB shipping point, the seller records the payment of the transportation cost by
- accounts
- accounts
- transportation
- The account that appears in the chart of accounts for a merchandising entity but not for a service entity is
Accounts receivable - Accumulated
depreciation - Advertising expense
- Sales return and allowances
- Olive Valenzuela Traders purchased merchandise from San Jose Suppliers for P 3,600 list price, subject to trade discount of 25%. The goods were purchased on terms of 2/10, m/30, O.B. destination. Valenzuela paid P100 transportation cost. Valenzuela returned P 400 (list price) of the merchandise to San Jose and later paid the amount due within the discount period. The amount paid is.
- P2,254
- P2,252
- P2,246
- P2,352
- Grace Ancheta company which uses the gross price method of recording purchases, and the periodic inventory system, brought merchandise for P8,000, terms 2/10, n/30. If Ancheta returns P2,000 of the goods to the vendor, the entry to the record the return should include
- Credit to purchases returns and allowance of P1,960.
- Debit to accounts payable of P2,000.
- Debit to discount lost
- Debit to purchases return and allowance of P1,960.
- The 31, 2018
trial balance for Aileen Maglana Company included the following purchases, P40,000; purchases returns and allowances, P2,000; transportation in, P3,000; ending inventory was P8,000. What was the cost of goods sold for 2018? - P39,000
- P33,000
- P38,000
- None of the above
- The basic differences between the financial statements of a merchandise entity and a service entity include the cost of goods sold sections of the income statement and
- Equity section of the balance
- Inclusion of merchandise inventory on the balance sheet as a current
- Other income section of the income
- Profit
- Which of the following items appear in both the income statement and the
statement of financial position of an entity?- Profit
- Drawings
- Account receivable
- Electricity expenses
- Inventory is recorded in the statement of financial position of an What kind of inventory is recorded in the statement of financial position?
- Opening inventory
- Closing inventory
- Average of the opening and closing inventory
- High of the opening or closing inventory
- Arrange the following current assets according to their liquidity, starting from the most liquid one:
- Cash, bank, inventory, accounts receivable
- Accounts receivable, inventory, bank, cash
- Bank, cash, accounts receivable, inventory
- Cash, bank, accounts receivable, inventory
- Which of the following accounts would appear on a worksheet for a merchandising entity that uses the perpetual inventory system?
- Cost of Goods sold
- Income Summary
- Purchases
- Purchases Returns and Allowances
- Which of the following accounts would not be closed by merchandising entity that uses the perpetual inventory system?
- Cost of goods sold
- Income summary
- Merchandise Inventory
- Sales returns and allowances
- Which of the following accounts would appear on a worksheet for a merchandising entity that uses periodic inventory system?
- Cost of goods sold
- Income summary
- Purchases returns and allowances
- All of these
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