1. A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount. True or False
2. The petty cash account Cash Short and Over is a temporary account.
True or False
3. A corporation can own property, incur liabilities, and enter into contracts in its own name.
True or False
4. A corporation exists independent of its owners.
True or False
5. The terms of sale 1/10, n/30 means that 1/10, or 10%, of the invoice amount may be deducted if paid within 30 days.
True or False
6. The total of accounts in the accounts payable subsidiary ledger equals the balance of the controlling account, Accounts Payable.
True or False
7. The contra account Purchases Discount has a normal debit balance.
True or False
8. A merchandising business places Purchases in the Operating Expenses section of the income statement.
True or False
9. The periodic inventory method does not require records of the quantity and cost of individual goods.
True or False
10. The total of a schedule of accounts payable less purchases discounts taken during the month will equal the total of Accounts Payable.
True or False