Flashcards in Exam Deck (80)
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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