Question 1

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 2

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 3

Totaling the columns of a journal and proving the equality of the totals is called footing and cross-footing a journal.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

The use of special journals to record transactions

Accepted Answer

A)  eliminates the need for a general ledger. 
B)  can save time in the posting process. 
C)  eliminates the need for a general journal. 
D)  should only be used if the volume of transactions is small. 
A)  eliminates the need for a general ledger. 
B)  can save time in the posting process. 
C)  eliminates the need for a general journal. 
D)  should only be used if the volume of transactions is small.

Question 7

If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The entries in a sales journal will show

Accepted Answer

A)  all sales of merchandise. 
B)  the cash sales of the company. 
C)  the credit sales of merchandise. 
D)  all sales of the company. 
A)  all sales of merchandise. 
B)  the cash sales of the company. 
C)  the credit sales of merchandise. 
D)  all sales of the company.

Question 10

In which journal would a customer's partial payment on account be recorded?

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 11

All of the column totals in the cash receipts journal are posted to general ledger accounts except the

Accepted Answer

A)  Accounts Receivable column total. 
B)  Cash column total. 
C)  Sales column total. 
D)  Other Accounts column total. 
A)  Accounts Receivable column total. 
B)  Cash column total. 
C)  Sales column total. 
D)  Other Accounts column total.

Question 12

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

Question 13

Postings from the purchases journal to the general ledger are made

Accepted Answer

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

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

Cross-footing a cash receipts journal means

Accepted Answer

A)  the equality of debits and credits in the journal have been proved. 
B)  each line of the journal has a horizontal total. 
C)  the columns of the journal have been cross-referenced. 
D)  all necessary postings have been completed. 
A)  the equality of debits and credits in the journal have been proved. 
B)  each line of the journal has a horizontal total. 
C)  the columns of the journal have been cross-referenced. 
D)  all necessary postings have been completed.

Question 16

Selected account balances for Hernandez Company at January 1, 2010, are presented below.   
Hernandez's sales journal for January shows a total of $120,000 in the selling price column, and its one-column purchases journal for January shows a total of $92,000.
The column totals in Hernandez's cash receipts journal are: Cash Dr. $61,000; Sales Discounts Dr. $1,100; Accounts Receivable Cr. $40,000; Sales Cr. $6,000; and Other Accounts Cr. $11,100.
The column totals in Hernandez's cash payments journal for January are: Cash Cr. $45,000; Inventory Cr. $1,000; Accounts Payable Dr. $46,000; and Other Accounts Dr. $10,000. Hernandez's total cost of goods sold for January is $68,600.
Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales 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 Hernandez in the following accounts.
(a) Accounts Payable.
(b) Accounts Receivable.
(c) Cash.
(d) Inventory.
(e) Sales.

Accepted Answer

(a) $20,000 + $92,000 - $46,000 = $66,00

Question 17

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 18

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.

Accepted Answer

A) True 
 B)False

Question 19

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 7: Accounting Information Systems

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

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

Totaling the columns of a journal and proving the equality of the totals is called footing and cross-footing a journal.

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

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

The use of special journals to record transactions

If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system.

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

The entries in a sales journal will show

In which journal would a customer's partial payment on account be recorded?

All of the column totals in the cash receipts journal are posted to general ledger accounts except the

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

Postings from the purchases journal to the general ledger are made

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

Cross-footing a cash receipts journal means

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

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.

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

In developing an accounting system, cost effectiveness does not imply that

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

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