Question 1

When the totals of the sales journal are posted at the end of the month, there will be credits to

Accepted Answer

A)  Sales and Merchandise Inventory and debits to Accounts Receivable and Cost of Goods Sold. 
B)  Accounts Receivable and Cost of Goods Sold and debits to Sales and Merchandise Inventory. 
C)  Sales and debits to each individual customer account. 
D)  the Sales account only, and no debits. 
A)  Sales and Merchandise Inventory and debits to Accounts Receivable and Cost of Goods Sold. 
B)  Accounts Receivable and Cost of Goods Sold and debits to Sales and Merchandise Inventory. 
C)  Sales and debits to each individual customer account. 
D)  the Sales account only, and no debits. A

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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

Question 5

The accounts receivable ______________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Accepted Answer

subsidiary

Question 6

Which of the following is a true statement about manual and electronic accounting systems?

Accepted Answer

A)  Few small companies begin with manual systems. 
B)  The design and structure of manual and electronic systems are essentially the same. 
C)  Many companies convert from electronic to manual systems. 
D)  The design and structure of manual and electronic systems are fundamentally different. 
A)  Few small companies begin with manual systems. 
B)  The design and structure of manual and electronic systems are essentially the same. 
C)  Many companies convert from electronic to manual systems. 
D)  The design and structure of manual and electronic systems are fundamentally different.

Question 7

Entries in a sales journal

Accepted Answer

A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit. 
A)  are made from sales invoices. 
B)  will indicate the invoice number in the reference column of the sales journal. 
C)  will occupy two lines of the sales journal. 
D)  indicate either a cash debit or accounts receivable debit.

Question 8

Which of the following is not a basic principle of designing and developing an effective accounting information system?

Accepted Answer

A)  Approval by the SEC 
B)  Usefulness 
C)  Flexibility 
D)  Cost effectiveness 
A)  Approval by the SEC 
B)  Usefulness 
C)  Flexibility 
D)  Cost effectiveness

Question 9

To be useful, the information outputs of a system should be

Accepted Answer

A)  relevant, reliable, timely, and accurate. 
B)  reliable, flexible, understandable and timeless. 
C)  such that one report meets all different users needs. 
D)  distributed only to management personnel. 
A)  relevant, reliable, timely, and accurate. 
B)  reliable, flexible, understandable and timeless. 
C)  such that one report meets all different users needs. 
D)  distributed only to management personnel.

Question 10

Control accounts are always located in the general ledger.

Accepted Answer

A) True 
 B)False

Question 11

Marks Company uses four special journals, (cash receipts, cash payments, sales, and purchases journal) in addition to a general journal. On November 1, 2010, the control accounts in the general ledger had the following balances: Cash $12,000, Accounts Receivable $200,000 and Accounts Payable $42,000. Selected information on the final line of the special journals for the month of November is presented below:   
Additional Data:
The Sales Journal totaled $41,000. A customer returned merchandise for credit for $360 and Marks Company returned store supplies to a supplier for credit for $400.
Instructions
(a) Determine the missing amounts in the special journals.
(b) Determine the balances in the general ledger accounts (Cash, Accounts Receivable, and Accounts Payable) at the end of November.

Accepted Answer

(a) The missing amou

Question 12

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 13

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Correcting entries are journalized in

Accepted Answer

A)  a special journal. 
B)  the general journal. 
C)  the general ledger. 
D)  a correcting journal. 
A)  a special journal. 
B)  the general journal. 
C)  the general ledger. 
D)  a correcting journal.

Question 16

Richmond's Wholesale uses a sales journal. An entry in this journal represents a

Accepted Answer

A)  debit to Cash; credit to Sales. 
B)  debit to Accounts Receivable; credit to Sales. 
C)  debit to Sales Discounts; credit to Cash. 
D)  debit to Accounts Payable; credit to Sales Returns and Allowances. 
A)  debit to Cash; credit to Sales. 
B)  debit to Accounts Receivable; credit to Sales. 
C)  debit to Sales Discounts; credit to Cash. 
D)  debit to Accounts Payable; credit to Sales Returns and Allowances.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Maldanado Company has a balance in its Accounts Payable control account of $10,500 on January 1, 2010. The subsidiary ledger contains three accounts: Smith Company, balance $3,000; White Company, balance $2,500 and Marino Company. During January, the following payable-related transactions occurred.   
Instructions
(a) What is the January 1 balance in the Marino 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

The answer of Maldanado Company has a balance in its...

Question 19

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

Accepted Answer

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

Question 20

Using special journals can save time in posting because column totals are often posted rather than individual entries.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

When the totals of the sales journal are posted at the end of the month, there will be credits to

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

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

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

The accounts receivable ______________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger.

Which of the following is a true statement about manual and electronic accounting systems?

Entries in a sales journal

Which of the following is not a basic principle of designing and developing an effective accounting information system?

To be useful, the information outputs of a system should be

Control accounts are always located in the general ledger.

Credit sales of assets other than merchandise are recorded in the

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

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

Correcting entries are journalized in

Richmond's Wholesale uses a sales journal. An entry in this journal represents a

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

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

Using special journals can save time in posting because column totals are often posted rather than individual entries.

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 Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

The accounts receivable provides detailed information about customer accounts which is summarized in one account in the general ledger.