Self Assessment Quizzes

CHAPTER 15: Section 1 Purchasing Items Needed by a Business

	1.	An offer to charge customers to reduce their sale for early payment is called a

		a.	sales discount
		b.	purchases discount
		c.	revenue reduction
		d.	merchandise discount

	2.	Information placed on an invoice that outlines a set of steps to be followed in preparing the invoice for payment is

		a.	a processing stamp
		b.	an invoice
		c.	a packing slip
		d.	a purchase order

	3.	A written offer to a supplier to buy certain items is called a

		a.	purchase order
		b.	merchandise request
		c.	process order
		d.	purchase requisition

	4.	The journal entry for recording purchases of merchandise for cash is

		a.	debit Cash in Bank and credit Purchases
		b.	debit Purchases and credit Cash in Bank
		c.	debit Accounts Receivable and credit Purchases
		d.	debit Purchases and credit Accounts Receivable

	5.	The account used to record the cost of merchandise purchased during the fiscal period is the

		a.	Cost of Merchandise account
		b.	Merchandise account
		c.	Purchases account
		d.	Sales account

	6.	A discount on merchandise purchased is calculated by

		a.	adding the discount rate to the purchase amount
		b.	dividing the purchase amount by the discount rate
		c.	subtracting the discount rate from the purchase amount
		d.	multiplying the purchase amount by the discount rate

	7.	A form that lists the items included in shipment is called a

		a.	shipping slip
		b.	laundry list
		c.	packing slip
		d.	requisition slip

	8.	a written request that a certain item be purchased is called a

		a.	purchase order
		b.	merchandise request
		c.	process order
		d.	purchase requisition