Exam 7: Accounting Information Systems

Each general ledger control account balance must equal the composite balance of the individual accounts in the related subsidiary ledger at the end of an accounting period.

Which of the following would not be an appropriate heading for a column in the cash receipts journal?

At the end of the month the accountant for Sequoia Company prepared a schedule of accounts receivable from the accounts receivable subsidiary ledger. Its total did not agree with the balance in the Accounts Receivable control account in the general ledger. Briefly describe the procedure that should be followed in reconciling the two balances.

Cash from sales of merchandise will be recorded in the

Only transactions that cannot be entered in a special journal are recorded in the general journal.

Saira Ortiz has been a manager at Qwikall a large telecommunications company for ten years. She has worked very hard but she had to take two unpaid leaves of absence to assist her sick mother and then later she took unpaid leave when her children needed care. As a result she has received only two promotions during that time. She realizes that she probably will not receive any more promotions since the company views her as somewhat unstable. Last week a newly promoted manager bragged that he could just "sniff out" accounting errors. Saira angered at his arrogance deliberately recorded sales salaries as rent expense. Other accountants were present when she did so. The dollar amounts of her changes were not significant. Required: Has there been a violation of ethical standards? Explain.

A cash payments journal should not be used to record transactions which require payment by check.

The principles of developing an accounting information system do not include

Correcting entries are journalized in

General ledger accounting systems are software programs that integrate the various accounting functions related to sales purchases cash receipts and disbursements and payroll.

Selected account balances for Billings Company at January 1 2016 are presented below. Accounts Payable \ 18,000 Accounts Receivable 22,000 Cash 10,000 Inventory 13,500 Billings' sales journal for January shows a total of $143000 in the selling price column and its one-column purchases journal for January shows a total of $90000. The column totals in Billings' cash receipts journal are: Cash Dr. $111000; Sales Discounts Dr. $1100; Accounts Receivable Cr. $90000; Sales Revenue Cr. $11000; and Other Accounts Cr. $11100. The column totals in Billings' cash payments journal for January are: Cash Cr. $80000; Inventory Cr. $1000; Accounts Payable Dr. $73000; and Other Accounts Dr. $8000. Hernandez's total cost of goods sold for January is $73000. Accounts Payable Accounts Receivable Cash Inventory and Sales Revenue are not involved in the "Other Accounts" column in either the cash receipts or cash payments journal and are not involved in any general journal entries. Instructions Compute the January 31 balance for Billings in the following accounts. (a) Accounts Payable. (b) Accounts Receivable. (c) Cash. (d) Inventory. (e) Sales Revenue.

Journalizing in a sales journal will not

You are a supervisor in the accounting department of a large manufacturing company. Two weeks ago you were anxious to leave for your vacation and so you hurriedly recorded a whole stack of journal entries so that the others would not have as much to do while you were gone. When you returned you realized that you had entered a payment on account of a customer Norbert as payment on another customer's account Norton. Even worse you realized that Norbert's payment had been on an overdue account and that Norton had received a refund for overpayment. Required: Write a memo to Alma Gutierrez your boss explaining your mistake.

The accounting environment does not change as a result of

Shown below is a page from cash payments journal. Using the cash payments journal above identify each of the posting references indicated by a letter as representing: (1) a posting to a general ledger account. (2) a posting to a subsidiary ledger account. (3) that no posting is required.

When control and subsidiary accounts are involved there must be a dual posting.

An advantage of using a subsidiary ledger is that one employee must post to both the subsidiary ledger and the general ledger.

Transactions that cannot be entered in a special journal are recorded in the _______________ and if control and subsidiary accounts are involved there must be a _______________ posting.

A company would not likely use subsidiary ledgers for

Postings from the purchases journal to the general ledger are made