Question 1

Describe what is meant by balancing the ledgers.

Accepted Answer

At the end of the period, general ledger

Question 2

In computerized accounting systems, modules can be the same as submenus.

Accepted Answer

A) True 
 B)False

Question 3

A good accounting information system includes all of the following features except:

Accepted Answer

A) compatibility. 
B) inflexibility. 
C) a favourable cost/benefit relationship. 
D) control. 
A) compatibility. 
B) inflexibility. 
C) a favourable cost/benefit relationship. 
D) control.

Question 4

Special journals are particularly efficient for:

Accepted Answer

A) similar, repetitive transactions. 
B) unusual transactions. 
C) transactions that require recording in 3 or more accounts. 
D) transactions that are corrections of previous errors. 
A) similar, repetitive transactions. 
B) unusual transactions. 
C) transactions that require recording in 3 or more accounts. 
D) transactions that are corrections of previous errors.

Question 5

The Hide and Seek Company has retail outlets at both large malls and small strip malls throughout Canada. Its accounting information system is able to track total revenues by store, by type of mall, by size of the store, by province, and by region. This is an example of which feature of a good information accounting system?

Accepted Answer

A) flexibility 
B) favourable cost/benefit relationship 
C) compatibility 
D) control 
A) flexibility 
B) favourable cost/benefit relationship 
C) compatibility 
D) control

Question 6

Why is a well-structured chart of accounts particularly important in a computerized accounting system?

Accepted Answer

A well-structured chart of accounts is e

Question 7

The general journal is used to record all transactions that do not fit one of the special journals.

Accepted Answer

A) True 
 B)False

Question 8

A business that sells on account must have good accounts receivable records to ensure collection from customers. What is the name of detailed record of amounts collectible from individual customers?

Accepted Answer

Accounts r

Question 9

The two basic components of a computerized accounting information system are the hardware and software.

Accepted Answer

A) True 
 B)False

Question 10

Describe the five features of a good accounting information system and give an example of each.

Accepted Answer

1. Control. Internal control is the orga

Question 11

The purchase of equipment on account would be recorded in the:

Accepted Answer

A) cash payments journal. 
B) general journal. 
C) purchases journal. 
D) sales journal. 
A) cash payments journal. 
B) general journal. 
C) purchases journal. 
D) sales journal.

Question 12

If special journals are used, the purchase of merchandise for cash would be recorded in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 13

Two components that form a computerized accounting system include:

Accepted Answer

A) hardware and personnel. 
B) hardware and software. 
C) hardware and input. 
D) personnel and input. 
A) hardware and personnel. 
B) hardware and software. 
C) hardware and input. 
D) personnel and input.

Question 14

Table 7-8 Nordin Avionics
J. Nordin Avionics began business on January 1, 2019. The business was started with $10,000 in the cash account and $30,000 of inventory in stock. Nordin uses a sales journal to record credit sales and a cash receipts journal to record all cash receipts, including both cash sales and cash collections of credit sales. At the end of January, the two journals appeared as follows:
Sales Journal $\begin{array}{|l|l|l|l|l|r|}
\hline
& & & &\text { Accts Rec } & \
\text { Date } & \text { Invoice \# } & \text { Customer } & \text { Post } & \text { DR } & \text { COGS DR/ } \
&&&\text { Ref. } & \text { Sales Rev CR } & \text { Inventory CR }\
\hline \text { Jan } 4 & 1000 & \text { Reed, A. } & & \$ 5,000 & \$ 4,100 \
\hline 6 & 1001 & \text { Charles, B. } & & 1,240 & 990 \
\hline 13 & 1002 & \text { Reed, A. } & & 3,200 & 2,800 \
\hline 20 & 1003 & \text { Williams, D. } & & 900 & 820 \
\hline 22 & 1004 & \text { Charles, B. } & & 5,100 & 4,600 \
\hline & & \text { Total } & & \$ 15,440 & \$ 13,310 \
\hline
\end{array}$ Cash Receipts Journal $$\begin{array} { | r | r | r | r | r | r | r | } 
\hline \text { Date } &  { \begin{array} { c } 
\text { Cash } \
\text { Debit }
\end{array} } & \begin{array} { c } 
\text { Sales Revenue } \
\text { Credit }
\end{array} & \begin{array} { c } 
\text { Accts. } \
\text { Rec. } \
\text { Credit }
\end{array} & \text { Invoice \# } & \text { Customer } & \begin{array} { r } 
\text { COGS DR/ } \
\text { Inventory CR }
\end{array} \
\hline \text { Jan 5 } & \$ 3,300 & \$ 3,300 & & & & \$ 2,700 \
\hline 10 & 5,000 & & \$ 5,000 & 1000 & \text { Reed, A. } & \
\hline 14 & 9,000 & 9,000 & & & & 8,000 \
\hline 18 & 1,240 & &1,240 & 1001& \text { Charles,B. } & \
\hline & \$ 18,540 & \$ 12,300 & \$ 6,240 & & & \$ 10,700 \
\hline
\end{array}$$
-Refer to Table 7-8 at the end of January, what was the balance in the subsidiary account receivable for A. Reed?

Accepted Answer

A) $9,200 credit balance 
B) $3,200 debit balance 
C) $5,000 credit balance 
D) $3,200 credit balance 
A) $9,200 credit balance 
B) $3,200 debit balance 
C) $5,000 credit balance 
D) $3,200 credit balance

Question 15

Lee Enterprises received payment within the discount period from a customer who had purchased merchandise on account. The sales invoice was for $2,000, and credit terms were 3/15 n/30. In the cash receipts journal, $1,940 will appear under the:

Accepted Answer

A) sales revenue credit column. 
B) accounts receivable credit column. 
C) cash debit column. 
D) cash credit column. 
A) sales revenue credit column. 
B) accounts receivable credit column. 
C) cash debit column. 
D) cash credit column.

Question 16

The accounts payable subsidiary ledger has postings from which sets of journals?

Accepted Answer

A) sales, cash payments, and general 
B) purchases, cash receipts, and sales 
C) purchases, cash payments, and general 
D) purchases, general, and cash receipts 
A) sales, cash payments, and general 
B) purchases, cash receipts, and sales 
C) purchases, cash payments, and general 
D) purchases, general, and cash receipts

Question 17

Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal.

Accepted Answer

A) True 
 B)False

Question 18

The set of programs that cause the computer to perform the work desired is called the:

Accepted Answer

A) hardware. 
B) network. 
C) server. 
D) software. 
A) hardware. 
B) network. 
C) server. 
D) software.

Question 19

On April 10, Salt Company received a cheque from Pepper Company for payment of an invoice dated March 24 for $2,000 with credit terms of 2/10 n/30. On March 28, Pepper had returned $200 of the merchandise because it was defective. How would this transaction be recorded in Salt's cash receipts journal?

Accepted Answer

A) debit Cash $2,000; credit Accounts Receivable-Pepper Company $2,000 
B) debit Cash $1,800; credit Accounts Receivable-Pepper Company $1,800 
C) debit Cash $1,764; credit Accounts Receivable-Pepper Company $1,764 
D) debit Cash $1,764 and Sales Discounts $36; credit Accounts Receivable-Pepper Company $1,800 
A) debit Cash $2,000; credit Accounts Receivable-Pepper Company $2,000 
B) debit Cash $1,800; credit Accounts Receivable-Pepper Company $1,800 
C) debit Cash $1,764; credit Accounts Receivable-Pepper Company $1,764 
D) debit Cash $1,764 and Sales Discounts $36; credit Accounts Receivable-Pepper Company $1,800

Question 20

In a computerized accounting system, a list of options for choosing computer functions is called a(n):

Accepted Answer

A) menu. 
B) server. 
C) on-line processor. 
D) batch processor. 
A) menu. 
B) server. 
C) on-line processor. 
D) batch processor.

Describe what is meant by balancing the ledgers.

In computerized accounting systems, modules can be the same as submenus.

A good accounting information system includes all of the following features except:

Special journals are particularly efficient for:

Why is a well-structured chart of accounts particularly important in a computerized accounting system?

The general journal is used to record all transactions that do not fit one of the special journals.

A business that sells on account must have good accounts receivable records to ensure collection from customers. What is the name of detailed record of amounts collectible from individual customers?

The two basic components of a computerized accounting information system are the hardware and software.

Describe the five features of a good accounting information system and give an example of each.

The purchase of equipment on account would be recorded in the:

If special journals are used, the purchase of merchandise for cash would be recorded in the cash payments journal.

Two components that form a computerized accounting system include:

Lee Enterprises received payment within the discount period from a customer who had purchased merchandise on account. The sales invoice was for $2,000, and credit terms were 3/15 n/30. In the cash receipts journal, $1,940 will appear under the:

The accounts payable subsidiary ledger has postings from which sets of journals?

Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal.

The set of programs that cause the computer to perform the work desired is called the:

In a computerized accounting system, a list of options for choosing computer functions is called a(n):

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters

Exam 7: Accounting Information Systems

Describe what is meant by balancing the ledgers.

In computerized accounting systems, modules can be the same as submenus.

A good accounting information system includes all of the following features except:

Special journals are particularly efficient for:

Why is a well-structured chart of accounts particularly important in a computerized accounting system?

The general journal is used to record all transactions that do not fit one of the special journals.

A business that sells on account must have good accounts receivable records to ensure collection from customers. What is the name of detailed record of amounts collectible from individual customers?

The two basic components of a computerized accounting information system are the hardware and software.

Describe the five features of a good accounting information system and give an example of each.

The purchase of equipment on account would be recorded in the:

If special journals are used, the purchase of merchandise for cash would be recorded in the cash payments journal.

Two components that form a computerized accounting system include:

Lee Enterprises received payment within the discount period from a customer who had purchased merchandise on account. The sales invoice was for $2,000, and credit terms were 3/15 n/30. In the cash receipts journal, $1,940 will appear under the:

The accounts payable subsidiary ledger has postings from which sets of journals?

Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal.

The set of programs that cause the computer to perform the work desired is called the:

In a computerized accounting system, a list of options for choosing computer functions is called a(n):

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters