Exam 7: Accounting Information Systems

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Handy Company uses both special journals and a general journal. The company accountant made the following errors during July. 1. Incorrectly added the credit entries in a customer's account in the accounts receivable subsidiary ledger. The total was listed as $2,690; it should have been $2,790. 2. A remittance of $400 from Don Ford was correctly recorded in the cash receipts journal, but the amount was posted incorrectly to the account of customer Dan Fort in the subsidiary ledger. 3. A purchase of merchandise on account from Harry Company for $1,000 was incorrectly entered in the purchases journal at $10,000. 4. In the sales journal, the entries were incorrectly added for the month. The monthly total was listed as $24,820; it should have been $24,280. Instructions Indicate how each of the above errors might be discovered.

(Essay)

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Question 61

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

(True/False)

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Question 62

A subsidiary ledger provides up-to-date information on specific account balances.

(True/False)

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Question 63

The process of totaling the columns of a journal is termed

(Multiple Choice)

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Question 64

Postings are made daily to subsidiary ledgers so that

(Multiple Choice)

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Question 65

The balance of a control account in the general ledger

(Multiple Choice)

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Question 66

If a transaction cannot be recorded in a special journal, it is

(Multiple Choice)

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Question 67

Which of the following statements is incorrect?

(Multiple Choice)

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Question 68

If a transaction cannot be recorded in a special journal

(Multiple Choice)

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Question 69

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

(Multiple Choice)

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Question 70

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.

(Short Answer)

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Question 71

If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded in the

(Multiple Choice)

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Question 72

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

(Short Answer)

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Question 73

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

(True/False)

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Question 74

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

(Multiple Choice)

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Question 75

A sales journal is used to record

(Multiple Choice)

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Question 76

Accounts Receivable and Accounts Payable are examples of

(Multiple Choice)

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Question 77

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

(Multiple Choice)

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Question 78

If an owner withdraws cash for personal use, the transaction should be recorded in the

(Multiple Choice)

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Question 79

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

(True/False)

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Question 80

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Exam 7: Accounting Information Systems

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

A subsidiary ledger provides up-to-date information on specific account balances.

The process of totaling the columns of a journal is termed

Postings are made daily to subsidiary ledgers so that

The balance of a control account in the general ledger

If a transaction cannot be recorded in a special journal, it is

Which of the following statements is incorrect?

If a transaction cannot be recorded in a special journal

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

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.

If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded in the

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

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

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

A sales journal is used to record

Accounts Receivable and Accounts Payable are examples of

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

If an owner withdraws cash for personal use, the transaction should be recorded in the

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

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

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.