AAMI Accounting 2 Final Prep exam with verified answers

AAMI Accounting 2 Final Prep exam with verified answers Is "accounts receivable" a permanent or temporary account? -Correct Answer-Permanent Is "Accounts Payable" a permanent or a temporary account? -Correct Answer-Permanent Which account gets closed first at the end of the accounting cycle -Correct Answer-Revenue True or False? Purchase returns and allowances increase the cost of merchandise purchased -Correct Answer-False, it decreases Purchases of merchandise for resale are debuted to a cost account called? -Correct Answer-Merchandise purchases True or False? When the seller collects sales tax, this is considered an asset? -Correct Answer-False, it is a liability to the seller Sales returns and allowances have a(n) _________effect on Owner's Equity -Correct Answer-Negative Freight is an______________ -Correct Answer-Expense When making a purchase by cash that purchase is entered into the purchase journal -Correct Answer-False Merchandise purchases for resale are entered as DEBITS -Correct Answer-True A special journal is one that is -Correct Answer-used for one type of transaction only The left side of every account is the____________side -Correct Answer-credit Freight in is a Liability -Correct Answer-false The Purchase Journal contains entries for Sales Tax Payable -Correct Answer-False Merchandise purchase's for resale are entered as ________ -Correct Answer-Expenses When closing accounts, the Drawing Account gets closed to: -Correct Answer-Capital When paying cash for merchandise, Accounts Payable is debited or credited or neither. -Correct Answer-neither