The Unearned revenue account represents the amount of ________.
A) cash paid to customers during the period
B) cash collected from customers during a period
C) goods and services sold to customers during a period
D) goods and services that a company owes its customers
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Q. 2) Which of the following is a control goal regarding master data?
a. ensure input validity
b. ensure update accuracy
c. ensure input accuracy
d. ensure input completeness
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Q. 3) A purchase allowance ________.
A) is the amount of cash the purchasing manager is allowed to spend
B) increases the cost of inventory purchased
C) represents the cost of merchandise returned to the vendor
D) is a cost reduction for keeping merchandise that is damaged or defective
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Q. 4) When words such as for deposit only or pay to the order of are added to a blank endorsement, it becomes a(n) ____________________.
Fill in the blank(s) with correct word
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Q. 5) During May, Team Shirts spent 4,000 to buy 800 T-shirts and sold 300 of them for 15 each. Team Shirts should recognize ________ as expense for May.
A) 4,500
B) 1,500
C) 3,750
D) 4,000
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Q. 6) A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, 3,600; Freight In, 650; Purchases, 10,700; Purchases Returns and Allowances, 1,950; Purchases Discounts, 330 . The cost of merchandise purchased is equal to
a. 12,670
b. 9,070
c. 8,420
d. 17,230
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