Exam Flashcards Preview

Accounting > Exam > Flashcards

Flashcards in Exam Deck (80)
Loading flashcards...
1

what are the three types of businesses?

Service, merchandising, manufacturing

2

periodic versus perpetual

periodic method is a physical inventory count perpetual is automatically in the system

3

what is transportation in?

and I can't use record the transportation charges on merchandise purchased

4

perpetual inventory method

A continuous record of all merchandise on hand

5

periodic inventory method

requires that a count be made of all inventory at the end of the fiscal period

6

physical inventory

A count of all goods on hand

7

The 500s are cost of goods sold accounts

600s are expenses

8

on the return is store sales returns and allowances credit or debit?

debit

9

Store sales returns and allowances is

normally debited

10

Credit invoice

The source document issued by the seller to indicate the amount of credit allowed to a customer for returned or defective goods

11

sales discount

offered to encourage early payment of customer account balances

12

purchases

The cost of merchandise purchased for resale is recorded in this account

13

purchases returns and allowances

used by the buyer to record the return of goods

14

delivery expense

used to record the cost of delivering merchandise to customers

15

how is cash purchase of merchandise dealt with on periodic versus perpetual

periodic uses purchases account

perpetual uses merchandise inventory

16

how does the return work on a perpetual inventory system?

cash is debited, merchandise inventory is credited

17

how is a purchase discount recorded on perpetual system?

instead of using purchase discount account merchandise inventory is credited

18

sale of merchandise on perpetual inventory system

cash is debited, sales credited

in a different entry,

cost of goods sold is debited merchandise inventory is credited

19

how was sales of merchandise recorded in periodic system?

cash is debited
sales are credited

20

how does the sales return work using a perpetual system?

sales returns and allowances is debited cash is credited

merchandise inventory is debited cost of goods sold is credited

21

how to record inventory storage

only occur on perpetual inventory system's


inventory shortage is debited merchandise inventory is credited

22

what provinces use HST?

Newfoundland and Labrador
New Brunswick
Nova Scotia and
Ontario

nova Scotia has 15% the rest are 13%

23

What percent is the GST?

5%

24

what percentage is PST?

7 in British Columbia and Manitoba,
5 in Saskatchewan,
9.5 in Quebec,
10% in Prince Edward Island

25

what does GST stand for?

goods and services tax

26

what does HST stand for?

harmonized sales tax combines GST and PST

27

what is input tax credit?

The amount of GST a business pays other businesses when it buys goods or services

28

how do you pay the monthly amount of GST/HST?

GST payable is debited GST refundable and cash are credited

29

what does PST stand for?

provincial retail sales tax

30

how do you record a sale with tax?

cash debited, GST payable and sales credited