Which of the following activities is not a component of the operating cycle? a.

Q: Which of these transactions requires a debit entry to Cash?A. paid balance due to suppliersB. sold…

A: Cash is one of the asset held by the business, for which normal balance is debit balance. Any…

Q: Which of the following accounts is not normally part of the revenue and collection cycle?a. Sales.b.…

A: Revenue and collection cycle is business process related to the products delivery and collection of…

Q: Which of the following transaction will be correct in regards to Source document of a Business? O a.…

A: Source documents are sort of documents that are part of accounting and are created when any monetary…

Q: Describe each transaction. b. What was the invoice amount of the merchandise that was returned?

A: Accounts receivable:  It is a current asset of an organization. It is the amount due from customers…

Q: In recording the cost of merchandise sold for cash, based on data available from perpetual inventory…

A: Journal entry: It is a systematic record of a financial transaction that is recorded in…

Q: The revenue recognition principle requires retailers to recognise sales revenue when it is earned…

A: The accrual basis accounting system is considered a feature of the accrual base accounting system…

Q: The entry to record collection of trade receivables under cash basis of accounting is A. debit to…

A: Under cash basis of accounting only cash transections are recorded such as cash collection, Cash…

Q: Which of the following would not be an appropriate heading for a column in the cash receipts…

A: Cash receipt journal records the receipt of cash from sales to customers. Cash receipt journal…

Q: One-column sales journal may be used to record collection on account sales of goods for cash sales…

A: Sales Journal records all the entries related to the sales made to customers both for cash and on…

Q: When purchases of merchandise are made on account and the perpetual method is used, the transaction…

A: If a business entity purchases the merchandise Inventory on account, hereunder double-entry system…

Q: What type of account is Merchandise Inventory and on which financial statement is it found? Does it…

A: Merchandise inventory means goods or stock that the business has in its books or in its stock. This…

Q: What is the name of the account used to record purchases of merchandise inventory?

A: The concept of merchandise inventory is associated with cost of goods that is in hand and available…

Q: Cash paid for merchandise is an operating activity. Select one: a. FALSE b. TRUE

A: Operating activity: Operating activity can be defined as those business activities which are related…

Q: Which of following functions should be segregated?a. opening the mail and recording cash receipts in…

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: 6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following accounts does not belong in the purchases and disbursement cycle? A.…

A: Purchase Cycle: Purchase cycles (also known as buying cycles) refer to the steps that customers take…

Q: What effects on a retail store's accounting equation occur when it records merchandise purchased for…

A: Option (d) [ No net effect. ]  for explanation refer step 2

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid?…

A: Option Explanation a Unsold goods are included in the inventory b Cash is unspent money. c…

Q: 3. When purchasing merchandise for resale on account, record the transaction in the sales journal.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…

Q: Which term is applied to the excess of revenue from sales over the cost of merchandise sold? a.net…

A: Income statement: It refers to a financial statement that presents all the income earned by the…

Q: Which account will be debited to record the purchase of merchandise on credit under periodic…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: A company sells merchandise for cash. This transaction is recorded as: Group of answer choices A…

A: Golden Rules: There are three golden rules nominal, personal, and real. All financial transactions…

Q: If a customer purchases merchandise on credit and return the defective merchandise before payment,…

A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…

Q: A retail store received cash and issued gift certificates that are redeemable in merchandise. How…

A: Solution: When cash is received in lieu of gift certificates, deferred revenue is credited. When…

Q: Identify whether each of the following transactions, which are related to revenue recognition, are…

A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…

Q: Why should the function of requisitioning the purchase of goods be segregated from the function of…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: which of the following account will be least likely involved in the purhasing sub-process of the…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: Which of the following statement is FALSE for Merchandise inventory of the Business? a. It is a…

A: Merchandise inventory is classified as a current asset on the balance sheet. Assets normally have a…

Q: How do you determine the invoice of merchandise returned?

A: Merchandise return refers to the inventory that is returned by the customer to the seller for their…

Q: Match the terms with the definitions.     A journal designed for recording only certain kinds of…

A: In accounting specific journals are used for specific purposes to make the accounting process…

Q: he time between the acquisition of inventory and the collection of cash from receivables is which of…

A: The operating cycle(OC) is the time from the beginning of production process to collection of cash…

Q: It is used to who is responsible for paying shipping and when the title of the goods passes from…

A: The goods and services are usually exchanged between two parties. One is seller and the other is…

Q: Which of the following journal entry is correct for the transactions of goods returned by a…

A: When we make a sales to customer, we pass the following entry:- Trade receivables  Dr           To…

Q: Return of merchandise sold on account is recorded in the: A purchases journal B either sales or…

A: Merchandise is very important asset for the business. Purchase and sale of merchandise is recorded…

Q: Which of the following account will be least likely involved in the purchasing sub-process of the…

A: The purchasing sub-process of the purchasing and disbursement cycle starts with authorization of…

Q: The type of transaction that would appear in sales journal would be a sale of

A: Sales Journal is a daybook to record the sales on credit to customers

Q: Transactions involved in the purchases and cash disbursements cycle include: A Debit inventory,…

A: Purchases and disbursements cycle is one of the important cycle used in accounting information…

Q: True or False: The posting of purchase transactions to the general ledger is done in the same manner…

A: Purchase transactions are the transactions relating to the procurement of goods from the party…

Q: ich of the following account will be least likely involved in the purchasing sub-process of the…

A: Solution: Purchasing and disbursement cycle is the cycle in which purchasing needs of a business are…

Q: When merchandise is bought for​ resale, which of the following accounts would be​ increased?   A.…

A: Merchandise: It can be defined as any type of manufactured goods which may include commercial or…

Q: Which of the following documents associated with the purchases and cash disbursements cycle is most…

A: Answer:-  Journal entry meaning:- A journal entry is the act of recording or keeping track of any…

Q: To determine cash payments for merchandise for the statement of cash flows using the direct method,…

A: Cash flow statement shows all cash inflows and cash outflows of the business during the particular…