The major difference between a typical credit account and a debit-only transfer system is that in the debit-only transfer system, _____
a. interest is assessed from the billing date
b. the purchase price is immediately deducted from the consumer's bank account
c. no interest is charged if payment is made at the billing date
d. the consumer is billed monthly on the basis of the outstanding balance
b
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Park, Inc purchased merchandise from Jay Zee Music Company on June 5, 2016 . The goods were shipped the same day. The merchandise's selling price was $15,000 . The credit terms were 1/10, n/30 . The shipping terms were FOB shipping point. Park received the merchandise on June 10, 2016 . Park paid the amount due on June 13, 2016. Park uses the periodic inventory system. What effect does recording
the purchase of merchandise on June 5, 2016 have on Park's accounting equation? a. Liabilities and stockholders' equity decrease. b. Liabilities increase and stockholders' equity decreases. c. Assets and liabilities increase. d. Assets and stockholders' equity increase.
Which of the following factors is not a component of the fraud triangle?
A. Opportunity B. Rationalization C. Pressure D. All of the above are components of the fraud triangle.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is:
A. Debit Accounts Payable $1,800; credit Cash $1,800. B. Debit Merchandise Inventory $1,600; credit Cash $1,600. C. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. D. Debit Accounts Payable $1,600; credit Cash $1,600. E. Debit Cash $1,600; credit Accounts Payable $1,600.
How many failures can a service firm commit before the recovery paradox is wiped out?
a. One failure b. Two failures c. Three failures d. Four failures e. Five failures