Chapter 08 – Accounting for Purchases and Accounts Payable
Chapter 08
Accounting for Purchases and Accounts Payable
1. The use of a purchases journal strengthens the audit trail.
2. Individual amounts in the purchases journal are posted to the general ledger during the
month.
3. The supplier’s invoice is the source document for a purchase on credit transaction.
8-6
© 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
18. Whenever a sales department needs goods, it sends the purchasing department a form
called a(n) ____________________.
19. The discounts that are offered by suppliers to encourage quick payment of invoices by
customers are known as ____________________ discounts.
20. The Freight In account should have a(n) ____________________ balance.
8-11
© 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
33. Which of the following statements is not correct?
34. Which of the following statements is correct?
