Question 1

The one characteristic that all entries recorded in a cash receipts journal have in common is

Accepted Answer

A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account. 
A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account.

Question 2

The use of special journals often saves time in the _______________ process.

Accepted Answer

The answer of The use of special journals often saves...

Question 3

An accounting system has flexibility if it is able to be used by many different companies at the same time.

Accepted Answer

A) True 
 B)False

Question 4

Maggie Mize operates a small business and uses a manual system of accounting. Transactions are entered in the general journal and posted to accounts in the general ledger at the end of the month. Although the volume of transactions has increased significantly in the past year Ms. Mize does not feel that it would be cost-effective to install an electronic accounting system. She hires you as a consultant to make recommendations about how to record transactions more efficiently. Briefly describe the principles that you would consider in making recommendations to Ms. Mize.

Accepted Answer

In order for Ms. Mize to have a more eff

Question 5

If a company uses a multi-column purchases journal which of the following possible headings for debit columns of the journal would not be appropriate?

Accepted Answer

A)  Accounts Payable 
B)  Inventory 
C)  Supplies 
D)  Other Accounts 
A)  Accounts Payable 
B)  Inventory 
C)  Supplies 
D)  Other Accounts

Question 6

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Accepted Answer

A) True 
 B)False

Question 7

If an owner withdraws cash for personal use the transaction should be recorded in the

Accepted Answer

A)  sales journal. 
B)  cash receipts journal. 
C)  general journal. 
D)  cash payments journal. 
A)  sales journal. 
B)  cash receipts journal. 
C)  general journal. 
D)  cash payments journal.

Question 8

A company uses a sales journal cash receipts journal purchases journal cash payments journal and a general journal. A cash sales return would be recorded in the

Accepted Answer

A)  sales journal. 
B)  cash receipts journal. 
C)  cash payments journal. 
D)  general journal. 
A)  sales journal. 
B)  cash receipts journal. 
C)  cash payments journal. 
D)  general journal.

Question 9

Circle the correct answer to each situation. 
-(a) A sales journal will be used for:

$\begin{array}{llll} 
\text {Credit \quad Sales} & \text { Cash \quad Sales } &\text {Sales \quad Returns } \
\text {Yes \quad \quad No} &\text { Yes\quad  \quad No} &\text { Yes \quad\quad  No}
\end{array}$
(b) A single-column purchases journal will be used for:

$\begin{array}{lcccc}
\text { Cash \quad Purchases } & \text { Purchases \quad  on Account } & \text { Purchase\quad  Discounts } \
\text { Yes\quad \quad  No } & \text { Yes \quad \quad No } & \text { Yes\quad \quad  No}
\end{array}$

(c) A multi-column purchases journal will be used for:

$\begin{array}{llll} 
&\text {Supplies Purchased}&\text {Equipment Purchased}\
\text {Cash Purchases} &\text { on Account } &\text { on Account } \
\text {Yes\quad \quad No} &\text { Yes \quad \quad No} & \text {Yes\quad \quad No}
\end{array}$

(d) A cash payments journal will be used for:
$\begin{array}{lll} 
\text {Payments to} & \text {Purchases }&\text { Owner Cash } \
\text {Creditors} &\text { Discounts} & \text {Investment} \
\text {Yes\quad \quad No} &\text { Yes\quad \quad No }&\text { Yes\quad \quad No}
\end{array}$

(e) A cash receipts journal will be used for:

$\begin{array}{lcccc} 
\text { Owner Cash }\
 \text {Withdrawals} & \text {Purchases Discounts } & \text {Cash Sales } \
\text {Yes\quad \quad No} & \text {Yes\quad \quad No} &\text { Yes\quad \quad No}
\end{array}$

Accepted Answer

(a) Yes, No, No
(d)

Question 10

Companies record credit purchases of equipment or supplies in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  general journal. 
D)  one-column purchases journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  general journal. 
D)  one-column purchases journal.

Question 11

Which of the following is not a true statement about the daily posting of the sales journal?

Accepted Answer

A)  There is a debit posting to accounts in the accounts receivable subsidiary ledger. 
B)  There is no credit posting. 
C)  The reference column in the sales journal is checked when the posting is complete for each entry in the journal. 
D)  The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger. 
A)  There is a debit posting to accounts in the accounts receivable subsidiary ledger. 
B)  There is no credit posting. 
C)  The reference column in the sales journal is checked when the posting is complete for each entry in the journal. 
D)  The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.

Question 12

The basic principles of an accounting information system are cost awareness usefulness and fixed structure.

Accepted Answer

A) True 
 B)False

Question 13

Bradshaw Company has a balance in its Accounts Receivable control account of $13000 on January 1 2016. The subsidiary ledger contains three accounts: Brown Company balance $6000; Smith Company balance $2500 and Coco's Company. During January the following receivable-related transactions occurred. $$\begin{array} { l c c c } 
& \text { Credit Sales } & \text { Collections } & \text { Returns } \
\hline \text { Brown Company } & \$ 15,000 & \$ 8,000 & \$ - 0 - \
\text { Smith Company } & 9,000 & 4,500 & 1,000 \
\text { Coco's Company } & 8,500 & 6,500 & - 0 -
\end{array}$$ Instructions
(a) What is the January 1 balance in the Coco's Company subsidiary account?
(b) What is the January 31 balance in the control account?
(c) Compute the balances in the subsidiary accounts at the end of the month.
(d) Which January transaction would not be recorded in a special journal?

Accepted Answer

(a)   woul

Question 14

The individual amounts in the sales journal are posted to the accounts receivable subsidiary ledger

Accepted Answer

A)  daily. 
B)  weekly. 
C)  monthly. 
D)  yearly. 
A)  daily. 
B)  weekly. 
C)  monthly. 
D)  yearly.

Question 15

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The answer of Match the items below by entering the...

Question 16

A cash receipts journal can be used to record all transactions involving cash coming into the business regardless of the source.

Accepted Answer

A) True 
 B)False

Question 17

The basic principles in the development of an accounting information system are (1)________________ (2)________________ and (3)_______________.

Accepted Answer

cost effec

Question 18

Why would special journals used in different businesses not be identical in format? What type of business would maintain a cash receipts journal but not include a column for accounts receivable?

Accepted Answer

The purpose of special journals is to fa

Question 19

Posting a sales journal to the accounts in the general ledger requires a

Accepted Answer

A)  debit to Cash and a credit to Sales Revenue. 
B)  debit to Sales Revenue and a credit to Inventory. 
C)  debit to Accounts Receivable and a credit to Inventory. 
D)  debit to Accounts Receivable and a credit to Sales Revenue. 
A)  debit to Cash and a credit to Sales Revenue. 
B)  debit to Sales Revenue and a credit to Inventory. 
C)  debit to Accounts Receivable and a credit to Inventory. 
D)  debit to Accounts Receivable and a credit to Sales Revenue.

Question 20

An accounting information system involves data collection data processing and information dissemination.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

The one characteristic that all entries recorded in a cash receipts journal have in common is

The use of special journals often saves time in the _______________ process.

An accounting system has flexibility if it is able to be used by many different companies at the same time.

If a company uses a multi-column purchases journal which of the following possible headings for debit columns of the journal would not be appropriate?

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

If an owner withdraws cash for personal use the transaction should be recorded in the

A company uses a sales journal cash receipts journal purchases journal cash payments journal and a general journal. A cash sales return would be recorded in the

Companies record credit purchases of equipment or supplies in the

Which of the following is not a true statement about the daily posting of the sales journal?

The basic principles of an accounting information system are cost awareness usefulness and fixed structure.

The individual amounts in the sales journal are posted to the accounts receivable subsidiary ledger

Match the items below by entering the appropriate code letter in the space provided.

A cash receipts journal can be used to record all transactions involving cash coming into the business regardless of the source.

The basic principles in the development of an accounting information system are (1)________________ (2)________________ and (3)_______________.

Why would special journals used in different businesses not be identical in format? What type of business would maintain a cash receipts journal but not include a column for accounts receivable?

Posting a sales journal to the accounts in the general ledger requires a

An accounting information system involves data collection data processing and information dissemination.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

The basic principles in the development of an accounting information system are (1)__ (2) and (3)_.