UniPASS Intro to Acct Practice Quiz #2!

The Accounting Cycle begins by recording ________ in the form of journal entries?

T-Accounts

Business Transactions

Financial Information

Assets

After journal entries are recorded, they can be posted to:

Financial Statements

Ledger Accounts

Expense Reports

General Journals

Which financial statement displays the revenues and expenses of a company over a period of time?

Balance Sheet

Cash Flow Statement

Income Statement

Statement of Changes in Equity

The accrual basis of Accounting records revenues when they are:

Collected

Contracted

Earned

Readily available for use

Which of the following is not a liability account?

Accounts Payable

Unearned Revenue

Accrued Expenses

Accrued Revenues

It is necessary to take which fraction of a GST-inclusive price to calculate the amount of GST?

11/10

10/11

1/10

1/11

Under the perpetual inventory system, what is the correct entry to record the income from the sale of 2 electric guitars sold to a customer at $550 per guitar including GST? The guitars were originally purchased on credit at $250 each, plus GST of $25 per guitar.

Debit accounts receivable $1000; debit GST collections $100; credit sales $1100

Debit credit sales $1000; debit GST collections $100; credit accounts receivable $1100

Debit accounts receivable $1100; credit sales $1100

Debit accounts receivable $1100; credit sales $1000; credit GST collections $100

Under the perpetual inventory system, what is the correct entry to record the cost of the sale of 2 electric guitars sold to a customer at $550 per guitar including GST? The guitars were originally purchased on credit at $250 each plus GST of $25 per guitar.

Debit cost of sales $1000; credit inventory $1000

Debit cost of sales $500; credit inventory $500

Debit cost of sales $500, debit GST outlays $50; credit inventory $550

Debit cost of sales $1100; credit sales $1100

The discount which is calculated on the list price of the goods is called:

Cash discount

Discount

Rebate

Trade Discount

A company initially sells inventory on credit, and the customer then pays within the discount period. When recording the journal entry to reflect this, which account is not debited?

Discount allowed

Cash

Accounts Receivable

GST Collection

UniPASS Intro to Acct Practice Quiz #2!

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