Question 1

Proving the postings of a one-column purchases journal would involve comparing the

Accepted Answer

A)  general ledger posting to Accounts Payable to the debit postings of the accounts receivable subsidiary ledger. 
B)  general ledger debit posting to Accounts Payable to the general ledger credit posting to Inventory. 
C)  general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory. 
D)  debit postings to the accounts payable subsidiary ledger to the credit postings to the accounts payable subsidiary ledger. 
A)  general ledger posting to Accounts Payable to the debit postings of the accounts receivable subsidiary ledger. 
B)  general ledger debit posting to Accounts Payable to the general ledger credit posting to Inventory. 
C)  general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory. 
D)  debit postings to the accounts payable subsidiary ledger to the credit postings to the accounts payable subsidiary ledger.

Question 2

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

Accepted Answer

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

Question 3

If a company purchases merchandise for cash the transaction should be recorded in the

Accepted Answer

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

Question 4

Postings are made daily to the

Accepted Answer

A)  Accounts Receivable control account. 
B)  Accounts Payable control account. 
C)  Accounts Receivable subsidiary ledger. 
D)  control accounts in the general ledger. 
A)  Accounts Receivable control account. 
B)  Accounts Payable control account. 
C)  Accounts Receivable subsidiary ledger. 
D)  control accounts in the general ledger.

Question 5

The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following economic events would not be recorded in the cash receipts journal?

Accepted Answer

A)  Cash sales of merchandise 
B)  Collections of accounts receivable 
C)  Cash from sale of land 
D)  Cash purchases of merchandise 
A)  Cash sales of merchandise 
B)  Collections of accounts receivable 
C)  Cash from sale of land 
D)  Cash purchases of merchandise

Question 7

In the expanded purchases journal debits are made in which columns?

Accepted Answer

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

Question 8

A subsidiary ledger is

Accepted Answer

A)  used in place of the general ledger if the general ledger is destroyed or stolen. 
B)  a group of accounts used by branches and subsidiaries of a corporate business. 
C)  a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. 
D)  used to post excess transactions if a general ledger account becomes full during an accounting period. 
A)  used in place of the general ledger if the general ledger is destroyed or stolen. 
B)  a group of accounts used by branches and subsidiaries of a corporate business. 
C)  a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. 
D)  used to post excess transactions if a general ledger account becomes full during an accounting period.

Question 9

The entries recorded in the Other Accounts column of a cash payments journal

Accepted Answer

A)  are posted to the accounts payable subsidiary ledger daily. 
B)  are posted individually to accounts in the general ledger. 
C)  are not posted individually but are posted as a column total to the general ledger. 
D)  do not require posting. 
A)  are posted to the accounts payable subsidiary ledger daily. 
B)  are posted individually to accounts in the general ledger. 
C)  are not posted individually but are posted as a column total to the general ledger. 
D)  do not require posting.

Question 10

Special journals are used to record unique transactions which do not occur very often.

Accepted Answer

A) True 
 B)False

Question 11

If a customer takes a sales discount an entry is made in the

Accepted Answer

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

Question 12

A control account and subsidiary ledger can be established for inventory.

Accepted Answer

A) True 
 B)False

Question 13

When special journals are employed all postings must be monthly or daily but cannot be both.

Accepted Answer

A) True 
 B)False

Question 14

The reference column of a multi-column cash payments journal after posting

Accepted Answer

A)  will only contain check marks. 
B)  will be blank. 
C)  will only contain account numbers. 
D)  may contain either account numbers or check marks. 
A)  will only contain check marks. 
B)  will be blank. 
C)  will only contain account numbers. 
D)  may contain either account numbers or check marks.

Question 15

Poole Company maintains four special journals and a general journal to record its transactions. Using the code below indicate in the space provided the appropriate journal for recording the transactions listed. 
  
9. Purchased office equipment for cash.
10. Made an adjusting entry for store supplies used during the period.

Accepted Answer

The answer of Poole Company maintains four special journals and...

Question 16

Kappy Products uses both special journals and a general journal as described in this chapter. Kappy also posts customers' accounts in the accounts receivable subsidiary ledger. The postings for the most recent month are included in the subsidiary T accounts below.   Instructions
Determine the correct amount of the end-of-month posting from the sales journal to the Accounts Receivable control account.

Accepted Answer

$1410 ($310 + $290 + $220 + $230 + $360)

Question 17

A company will usually replace a manual accounting information system with an electronic system as the operations increase in

Accepted Answer

A)  efficiency. 
B)  complexity. 
C)  simplicity. 
D)  productivity. 
A)  efficiency. 
B)  complexity. 
C)  simplicity. 
D)  productivity.

Question 18

In which journal would a cash purchase of inventory be recorded?

Accepted Answer

A)  Purchases journal 
B)  General journal 
C)  Cash payments journal 
D)  None of these answer choices are correct. 
A)  Purchases journal 
B)  General journal 
C)  Cash payments journal 
D)  None of these answer choices are correct.

Question 19

The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is

Accepted Answer

A)  cost effectiveness. 
B)  flexibility. 
C)  useful output. 
D)  implementation. 
A)  cost effectiveness. 
B)  flexibility. 
C)  useful output. 
D)  implementation.

Question 20

The process of totaling the columns of a journal is termed

Accepted Answer

A)  ruling. 
B)  columnizing. 
C)  sizing. 
D)  footing. 
A)  ruling. 
B)  columnizing. 
C)  sizing. 
D)  footing.

Exam 7: Accounting Information Systems

Proving the postings of a one-column purchases journal would involve comparing the

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

If a company purchases merchandise for cash the transaction should be recorded in the

Postings are made daily to the

The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger.

Which of the following economic events would not be recorded in the cash receipts journal?

In the expanded purchases journal debits are made in which columns?

A subsidiary ledger is

The entries recorded in the Other Accounts column of a cash payments journal

Special journals are used to record unique transactions which do not occur very often.

If a customer takes a sales discount an entry is made in the

A control account and subsidiary ledger can be established for inventory.

When special journals are employed all postings must be monthly or daily but cannot be both.

The reference column of a multi-column cash payments journal after posting

A company will usually replace a manual accounting information system with an electronic system as the operations increase in

In which journal would a cash purchase of inventory be recorded?

The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is

The process of totaling the columns of a journal is termed

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

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