Simpson Micro Owns Warehouses That Stock Computer Software

question 63

Multiple Choice

Simpson Micro owns warehouses that stock computer software. It offers net terms to retail stores, offers specials and promotions, and provides customer service. Simpson Micro is a(n) ____ wholesaler.

• A) general-specialty
• B) general-merchandise
• C) rare-service
• D) specialty-line
• E) agent

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Definitions:

Journalizing

The procedure of logging company transactions in a journal, forming a part of the cycle of accounting.

Debit

An accounting entry showing an increase in assets or expenses or a decrease in equity, liabilities, or revenue.

Credit

An accounting entry that increases liabilities or equity, or decreases assets, reflecting the value of transactions where goods, services, or cash are received.

Cash Account

A financial account that tracks the amount of cash inflows and outflows, representing the company's liquid assets.