1. A charge sale means that a customer will?
Pay at the time of the sale
Pay a month later when they receive an invoice
Have it charged to a credit card
Not have to pay at all
2. Colletctively all your charge sales are called?
accounts payable
stockholders' equity
cost of goods sold
accounts receivable
3. A form that you fill out when you complete as sale?
income statement
purchase order
invoice
expenses
4. Invoices typically are?
numbered sequentially
have no particular order
do not have numbers
are issued in alphabetical sequence
5. When filling our an invoice, you should?
leave the name of the customer off
just use the email address
fill in all the blanks
only get the customer's name and amount due
6. In the quantity column of an invoice?
just leave it blank
put the number of identical items ordered
divide the total by the sales tax and quantity
always use the number 1
7. The subtotal of an invoice represents?
the total of the items purchased before the sales tax
the total of the items purchased after the sales tax
the total of the invoice
there is no subtotal on an invoice
8. If the subtotal of an invoice was $575.00 and the tax was 7 3/4%, what is the total due on the invoice?
$44.56
$445.56
$619.56
$1,023.63
9. What is the amount of the sales tax if the subtotal of an invoice is $1,875.59 and the tax rate is 7 1/2%?
$87.50
$140.67
$1,406.70
$135.79
10. Amounts which a company owes to its creditors for goods and services purchased on credit is called?
accounts receivable
accounts payable
notes payable
depreciation
11. Accounts payable are classified as?
accounts receivable
liabilities
stockholders' equity
an invoice
12. When items are purchased on account for resale a/an ______ is issued?
invoice
purchase order
check
IOU
13. If the following items are listed on a purchase order, what is the total? 2 items @$375 and 4 items @ $425
$750.00
$1,900.00
$2,450.00
$3,500.00
14. What is the amount of sales tax on a purchase order, when the subtotal is $1,800 and the sales tax rate is 7 1/4%?
$130.50
There is no sales tax on a purchase order
$126.00
$135.00
15. What is the total amount of the following invoice 2 suits@$425.00 each, 2 silk ties @$25.00 each, sales tax is 7 3/4%?
$1,000.00
$1,007.46
$969.75
$1,200.00
Chapter 5 Accounting Test