Exam 7: Accounting Information Systems

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.

If a company uses a multi-column purchases journal, which of the following possible headings for debit columns of the journal would not be appropriate?

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

Entries in the purchases journal are made

Proving the equality of the totals in the columns of multiple-column special journals is called

A one column purchases journal indicates that

The entries recorded in the Other Accounts column of a cash payments journal

Richey Company maintains four special journals and a general journal to record its transactions. Using the code below, indicate in the space provided the appropriate journal for recording the transactions listed. Code Journals S Sales journal CR Cash receipts journal CP Cash payments journal P Single-column purchases journal G General journal 1. Mr. Richey invested cash in the business. 2. Purchased store supplies on account. 3. Sold merchandise to customer on account. 4. Purchased a 2-year fire insurance policy for cash. 5. Received a check from a customer as payment on account. 6. Paid for store supplies purchased in transaction 2. 7. Purchased merchandise on account. 8. Issued a credit memorandum to a customer who returned defective merchandise previously sold on account. 9. Purchased office equipment for cash. 10. Made an adjusting entry for store supplies used during the period.

Circle the correct answer to each situation.

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

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

Mangino Company has a balance in its Accounts Receivable control account of $15,000 on January 1, 2010. The subsidiary ledger contains three accounts: Jones Company, balance $6,000; Black Company, balance $2,500 and Denny Company. During January, the following receivable-related transactions occurred. Instructions (a) What is the January 1 balance in the Denny 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?

A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and a general journal. A cash sales return would be recorded in the

Posting a sales journal to the accounts in the general ledger requires a

In which journal would a cash purchase of merchandise inventory be recorded?

The one characteristic that all entries recorded in a multi-column purchases journal have in common is a

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

The basic principles in the development of an accounting information system are (1)________________, (2)________________, and (3)_______________.

All of the following are advantages of using subsidiary ledgers except they