Question 1

When posting the sales journal's activity at the end of the month,its totals are:

Accepted Answer

A) Debited to Sales and credited to Accounts Receivable. 
B) Debited to Accounts Receivable and credited to Cash. 
C) Debited to Cash and credited to Accounts Receivable. 
D) Debited to Accounts Receivable and credited to Sales. 
E) Debited to Cash and credited to Sales. 
A) Debited to Sales and credited to Accounts Receivable. 
B) Debited to Accounts Receivable and credited to Cash. 
C) Debited to Cash and credited to Accounts Receivable. 
D) Debited to Accounts Receivable and credited to Sales. 
E) Debited to Cash and credited to Sales.

Question 2

___________________ processing of transactions enters and processes data as soon as source documents are available.

Accepted Answer

The answer of ___________________ processing of transactions enters and processes...

Question 3

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000.Two days later Doughton returned $2,000 of the merchandise due to damage.When Doughton pays for the merchandise minus the return,it would record the payment in the:

Accepted Answer

A) General journal. 
B) Cash receipts journal. 
C) Cash disbursements journal. 
D) Purchases journal. 
E) Accounts Payable controlling account. 
A) General journal. 
B) Cash receipts journal. 
C) Cash disbursements journal. 
D) Purchases journal. 
E) Accounts Payable controlling account.

Question 4

The Saginaw Company uses special journals for sales,purchases,cash receipts,cash disbursements,and uses a general journal.They operate with a perpetual inventory system.Record the following transactions related to sales and cash receipts that occurred during the month of August:   Record the above transactions into the appropriate journals that follow.

Accepted Answer

The answer of The Saginaw Company uses special journals for...

Question 5

An accounts receivable ledger is a:

Accepted Answer

A) Subsidiary ledger that contains an account for each supplier (creditor). 
B) List of the separate accounts that show the balances outstanding from credit customers. 
C) Book of original entry that is designed and used for recording only sales on credit. 
D) Ledger that contains all financial statement accounts of a business. 
E) Subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company. 
A) Subsidiary ledger that contains an account for each supplier (creditor). 
B) List of the separate accounts that show the balances outstanding from credit customers. 
C) Book of original entry that is designed and used for recording only sales on credit. 
D) Ledger that contains all financial statement accounts of a business. 
E) Subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

Question 6

A journal that is used to record and post transactions of a similar type is a(n):

Accepted Answer

A) Perpetual journal. 
B) Columnar journal. 
C) Special journal. 
D) General journal. 
E) All-purpose journal. 
A) Perpetual journal. 
B) Columnar journal. 
C) Special journal. 
D) General journal. 
E) All-purpose journal.

Question 7

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________________________ and __________________ for each sale.This column is used in the perpetual system but not in the periodic.
answers can be given in any order

Accepted Answer

cost of go

Question 8

Valley Company shows the following customer accounts in its subsidiary ledger and the Accounts Receivable account in the general ledger for the month of July.Prepare a schedule of accounts receivable as proof that the subsidiary ledger balances equals the Accounts Receivable controlling account balance.

Accepted Answer

The answer of Valley Company shows the following customer accounts...

Question 9

A company makes a cash sale of $24,000.The cost of the merchandise is $13,000.Identify the journal the transaction would be recorded in.

Accepted Answer

A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchase journal. 
E) General journal. 
A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchase journal. 
E) General journal.

Question 10

Gershwin Company uses four special journals: purchases,sales,cash receipts,and cash disbursements.The following sales and cash collections transactions were incurred during October:   Record these transactions in the appropriate special journals below.

Accepted Answer

The answer of Gershwin Company uses four special journals: purchases,sales,cash...

Question 11

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Accepted Answer

A) General journal. 
B) Cash receipts journal. 
C) Cash disbursements journal. 
D) Purchases journal. 
E) Sales journal. 
A) General journal. 
B) Cash receipts journal. 
C) Cash disbursements journal. 
D) Purchases journal. 
E) Sales journal.

Question 12

Climbers Unlimited uses special journals to record its daily transactions.They use the perpetual inventory system.Shown below is its cash receipts journal and selected ledger accounts.Post the cash receipts journal to the appropriate ledger accounts.

Accepted Answer

The answer of Climbers Unlimited uses special journals to record...

Question 13

A subsidiary ledger:

Accepted Answer

A) Includes transactions not covered by special journals. 
B) Is a listing of all of the accounts of a business. 
C) Is a listing of individual accounts and amounts with a common characteristic. 
D) Is also called a general ledger. 
E) Is also called a special journal. 
A) Includes transactions not covered by special journals. 
B) Is a listing of all of the accounts of a business. 
C) Is a listing of individual accounts and amounts with a common characteristic. 
D) Is also called a general ledger. 
E) Is also called a special journal.

Question 14

A company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.A perpetual inventory system is used.The following transactions were completed by the company during the current month of February:   Record these transactions in the appropriate journals that follow.

Accepted Answer

The answer of A company uses a sales journal,purchases journal,cash...

Question 15

If a company issues a check for $2,750 in payment of the salaries expense for the last half of the month,the transaction will be recorded in which journal?

Accepted Answer

A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal. 
A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal.

Question 16

The Skyview Company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.They use the periodic inventory method.The following purchase and cash payments transactions occurred during the month of December:   Record these transactions using the journals below.

Accepted Answer

The answer of The Skyview Company uses a sales journal,purchases...

Question 17

The flexibility principle of accounting information systems prescribes that the:

Accepted Answer

A) Benefits from an activity in the system outweigh the costs of the activity. 
B) System report useful,understandable,timely,and pertinent information for effective decision making. 
C) System aid managers in controlling and monitoring business activities. 
D) System be able to adapt to changes in the company,business environment,and needs of decision makers. 
E) System conforms to a company's activities,personnel,and structure. 
A) Benefits from an activity in the system outweigh the costs of the activity. 
B) System report useful,understandable,timely,and pertinent information for effective decision making. 
C) System aid managers in controlling and monitoring business activities. 
D) System be able to adapt to changes in the company,business environment,and needs of decision makers. 
E) System conforms to a company's activities,personnel,and structure.

Question 18

Enterprise-resource planning software:

Accepted Answer

A) Refers to programs that help manage a company's vital operations. 
B) Is another name for spreadsheet programs. 
C) Uses batch processing of business information. 
D) Is substantially declining in use. 
E) Is another name for database programs. 
A) Refers to programs that help manage a company's vital operations. 
B) Is another name for spreadsheet programs. 
C) Uses batch processing of business information. 
D) Is substantially declining in use. 
E) Is another name for database programs.

Question 19

Wildlife Wholesale Supply sold birdseed to a retailer for $860,receiving cash at the time of sale.The cost of the birdseed was $370.When recording the collection from the customer,in its cash receipts journal,Wildlife would enter:

Accepted Answer

A) $860 in the Cash Dr.column and $860 in the Accounts Receivable Cr.column. 
B) $370 in the Cash Dr.column and $370 in the Accounts Receivable Cr.column. 
C) $860 in the Cash Dr.column;$860 in the Sales Cr.column;and $370 in the Other Accounts Cr.column. 
D) $860 in the Accounts Receivable Dr.column,$860 in the Cash Cr.column;and $370 in the Cost of Goods Sold Dr./Inventory Cr.column. 
E) $860 in the Cash Dr.column;$860 in the Sales Cr.column;and $370 in the Cost of Goods Sold Dr./Inventory Cr.column. 
A) $860 in the Cash Dr.column and $860 in the Accounts Receivable Cr.column. 
B) $370 in the Cash Dr.column and $370 in the Accounts Receivable Cr.column. 
C) $860 in the Cash Dr.column;$860 in the Sales Cr.column;and $370 in the Other Accounts Cr.column. 
D) $860 in the Accounts Receivable Dr.column,$860 in the Cash Cr.column;and $370 in the Cost of Goods Sold Dr./Inventory Cr.column. 
E) $860 in the Cash Dr.column;$860 in the Sales Cr.column;and $370 in the Cost of Goods Sold Dr./Inventory Cr.column.

Question 20

Which of the following is not an output device?

Accepted Answer

A) Printers. 
B) Monitors. 
C) Projectors. 
D) Web communications. 
E) Bar code readers. 
A) Printers. 
B) Monitors. 
C) Projectors. 
D) Web communications. 
E) Bar code readers.

Exam 7: Accounting Information Systems

When posting the sales journal's activity at the end of the month,its totals are:

___________________ processing of transactions enters and processes data as soon as source documents are available.

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000.Two days later Doughton returned $2,000 of the merchandise due to damage.When Doughton pays for the merchandise minus the return,it would record the payment in the:

An accounts receivable ledger is a:

A journal that is used to record and post transactions of a similar type is a(n):

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________________________ and __________________ for each sale.This column is used in the perpetual system but not in the periodic. answers can be given in any order

A company makes a cash sale of $24,000.The cost of the merchandise is $13,000.Identify the journal the transaction would be recorded in.

Gershwin Company uses four special journals: purchases,sales,cash receipts,and cash disbursements.The following sales and cash collections transactions were incurred during October: Record these transactions in the appropriate special journals below.

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Climbers Unlimited uses special journals to record its daily transactions.They use the perpetual inventory system.Shown below is its cash receipts journal and selected ledger accounts.Post the cash receipts journal to the appropriate ledger accounts.

A subsidiary ledger:

If a company issues a check for $2,750 in payment of the salaries expense for the last half of the month,the transaction will be recorded in which journal?

The flexibility principle of accounting information systems prescribes that the:

Enterprise-resource planning software:

Wildlife Wholesale Supply sold birdseed to a retailer for $860,receiving cash at the time of sale.The cost of the birdseed was $370.When recording the collection from the customer,in its cash receipts journal,Wildlife would enter:

Which of the following is not an output device?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _______ and for each sale.This column is used in the perpetual system but not in the periodic. answers can be given in any order