Multiple Choice Answers

Question 1
All unpaid vouchers are filed in an unpaid vouchers file in order of due date.

Question 2
Which of the following is an example of a deferred expense?

a. Prepaid advertising
b. Unearned revenue
c. Accounts payable
d. Accounts receivable

Question 3
On the bank’s accounting records, customers’ accounts are normally shown as:

a. revenue
b. expenses
c. an asset
d. a liability

Question 4
When the perpetual inventory system is used, the inventory sold is shown on the income statement as:

a. cost of merchandise sold
b. purchases
c. purchases returns and allowances
d. net purchases

Question 5 EFT:

a. means Efficient Funds Transfer
b. can process certain cash transactions at less cost than by using the mail
c. makes it easier to document purchase and sale transactions
d. means Effective Funds Transfer