Question 1

The reference column of the accounts in the accounts payable subsidiary ledger after posting may show

Accepted Answer

A)  only P references. 
B)  CP P or G references. 
C)  G P or S references. 
D)  only CP references. 
A)  only P references. 
B)  CP P or G references. 
C)  G P or S references. 
D)  only CP references.

Question 2

Listed below are various column headings that may appear in special journals. Using the following code letters identify for each column heading (1) the special journal where the column heading would appear and (2) whether the amounts entered under the column heading would be posted in total individually or both in total and individually. (Note: column headings may appear in more than one special journal)

Accepted Answer

The answer of Listed below are various column headings that...

Question 3

The Other Accounts column of a multi-column journal is often referred to as the

Accepted Answer

A)  Sundry Accounts column. 
B)  Controlling Account column. 
C)  Credit Account column. 
D)  Debit Account column. 
A)  Sundry Accounts column. 
B)  Controlling Account column. 
C)  Credit Account column. 
D)  Debit Account column.

Question 4

A one column purchases journal indicates that

Accepted Answer

A)  only purchases of merchandise on account can be recorded. 
B)  all purchases of merchandise can be recorded. 
C)  all acquisitions on account can be recorded. 
D)  another column must be added so that debits and credits can be recorded. 
A)  only purchases of merchandise on account can be recorded. 
B)  all purchases of merchandise can be recorded. 
C)  all acquisitions on account can be recorded. 
D)  another column must be added so that debits and credits can be recorded.

Question 5

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

Accepted Answer

A)  Cash column 
B)  Sales Discounts column 
C)  Accounts Receivable column 
D)  Other Accounts column 
A)  Cash column 
B)  Sales Discounts column 
C)  Accounts Receivable column 
D)  Other Accounts column

Question 6

Entries in a sales journal are

Accepted Answer

A)  posted only to accounts in an accounts receivable subsidiary ledger. 
B)  posted only to accounts in the general ledger. 
C)  posted to accounts in an accounts receivable subsidiary ledger and to accounts in the general ledger. 
D)  never posted. 
A)  posted only to accounts in an accounts receivable subsidiary ledger. 
B)  posted only to accounts in the general ledger. 
C)  posted to accounts in an accounts receivable subsidiary ledger and to accounts in the general ledger. 
D)  never posted.

Question 7

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Accepted Answer

A)  Accounts Receivable; accounts receivable subsidiary accounts 
B)  Accounts receivable subsidiary accounts; Sales Revenue 
C)  Accounts Receivable; Sales Revenue 
D)  Accounts Receivable; Purchases 
A)  Accounts Receivable; accounts receivable subsidiary accounts 
B)  Accounts receivable subsidiary accounts; Sales Revenue 
C)  Accounts Receivable; Sales Revenue 
D)  Accounts Receivable; Purchases

Question 8

Indicate whether each of the following accounts would be shown in the general ledger or subsidiary ledger.

Accepted Answer

1. General ledger 4. Subsidiar

Question 9

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an advantage of a subsidiary ledger?

Accepted Answer

A)  Shows transactions affecting one customer or one creditor in a single account. 
B)  Helps locate errors in individual accounts. 
C)  Puts greater detail in the general ledger. 
D)  Makes possible a division of labor. 
A)  Shows transactions affecting one customer or one creditor in a single account. 
B)  Helps locate errors in individual accounts. 
C)  Puts greater detail in the general ledger. 
D)  Makes possible a division of labor.

Question 11

In developing an accounting system cost effectiveness does not imply that

Accepted Answer

A)  the benefits obtained from the system outweigh the costs. 
B)  an electronic system must be cheaper than the system it is replacing. 
C)  the system should be cost effective. 
D)  the value of an accounting report should be at least equal to the cost of producing it. 
A)  the benefits obtained from the system outweigh the costs. 
B)  an electronic system must be cheaper than the system it is replacing. 
C)  the system should be cost effective. 
D)  the value of an accounting report should be at least equal to the cost of producing it.

Question 12

A one-column purchases journal is used to record purchases of merchandise on account.

Accepted Answer

A) True 
 B)False

Question 13

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Accepted Answer

A)  a signature of the accountant doing the posting. 
B)  a date under the double-line total. 
C)  the general ledger account numbers under the double-lined total. 
D)  inspecting the postings in the accounts payable subsidiary ledger. 
A)  a signature of the accountant doing the posting. 
B)  a date under the double-line total. 
C)  the general ledger account numbers under the double-lined total. 
D)  inspecting the postings in the accounts payable subsidiary ledger.

Question 14

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

Accepted Answer

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

Question 15

Credit sales of assets other than merchandise are recorded in the

Accepted Answer

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

Question 16

A student should recognize a need to study manual accounting systems because

Accepted Answer

A)  the structure of electronic systems differs greatly from manual systems. 
B)  all small companies only use manual accounting systems. 
C)  the software and hardware of electronic systems vary greatly which makes manual procedures more practical to study. 
D)  companies that use manual systems hire more accountants. 
A)  the structure of electronic systems differs greatly from manual systems. 
B)  all small companies only use manual accounting systems. 
C)  the software and hardware of electronic systems vary greatly which makes manual procedures more practical to study. 
D)  companies that use manual systems hire more accountants.

Question 17

The entry to record the granting of credit to a customer for a sales return is posted to

Accepted Answer

A)  the accounts receivable subsidiary ledger only. 
B)  the general ledger only. 
C)  both the accounts receivable subsidiary ledger and the general ledger. 
D)  both the accounts payable subsidiary ledger and the general ledger. 
A)  the accounts receivable subsidiary ledger only. 
B)  the general ledger only. 
C)  both the accounts receivable subsidiary ledger and the general ledger. 
D)  both the accounts payable subsidiary ledger and the general ledger.

Question 18

An accounting information system should be cost effective; that is the benefits of the information must outweigh the cost of providing it.

Accepted Answer

A) True 
 B)False

Question 19

When do companies normally post to (1) subsidiary accounts and (2) the general ledger control accounts? (b) Describe the relationship between a control account and a subsidiary ledger.

Accepted Answer

(a) (1) Transactions to subsidiary accou

Question 20

If a certain type of transaction occurs with great frequency it is more efficient to create a ______________ to record that type of transaction.

Accepted Answer

The answer of If a certain type of transaction occurs...

Exam 7: Accounting Information Systems

The reference column of the accounts in the accounts payable subsidiary ledger after posting may show

The Other Accounts column of a multi-column journal is often referred to as the

A one column purchases journal indicates that

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

Entries in a sales journal are

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Indicate whether each of the following accounts would be shown in the general ledger or subsidiary ledger.

The amounts appearing in the Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Which of the following is not an advantage of a subsidiary ledger?

In developing an accounting system cost effectiveness does not imply that

A one-column purchases journal is used to record purchases of merchandise on account.

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

Credit sales of assets other than merchandise are recorded in the

A student should recognize a need to study manual accounting systems because

The entry to record the granting of credit to a customer for a sales return is posted to

An accounting information system should be cost effective; that is the benefits of the information must outweigh the cost of providing it.

When do companies normally post to (1) subsidiary accounts and (2) the general ledger control accounts? (b) Describe the relationship between a control account and a subsidiary ledger.

If a certain type of transaction occurs with great frequency it is more efficient to create a ______________ to record that type of transaction.

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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