Exam 7: Accounting Information Systems

Which of the following is not one of the purposes of internal control?

Keeping accurate records of accounts receivable is an example of which feature of a good accounting information system?

Gere Company returned defective supplies to a supplier and received a cash refund. Assuming the use of special journals, this entry would be recorded in the:

The three stages of data processing are:

The total of the accounts receivable subsidiary ledger appear in this account which is used as a balance to reconcile to as a control feature for the subsidiary ledger?

Transactions in the sales journal are posted both to the general ledger and the accounts payable subsidiary ledger.

Amounts are posted individually from the purchases journal to the:

Manual accounting systems are never used in real life.

The main computer in a network, where the program and data are stored, is called the:

Cash in the chart of accounts is an example of a control account.

Table 7-9 The following transactions occurred during the month of July for Lancer Company. July 1 Sold Merchandise on credit for \ 3,100 to Chris Co, 2/10,30 , Invoice 316 . 7 Sold merchandise on credit to D. James for \ 900,2/20 , n 30 , Invoice 317 . 8 Borrowed \ 2,750 by giving a note to the bank. 13 Owner invested an additional \ 3,500 cash into the business. 18 Sold merchandise to M . Garnett for \ 230 cash. 22 Sold merchandise to Co. \ 2,100 , Invoice 318/30 . 27 Received payment from D. James for the July 7 purchase. 30 Paid salaries of \ 1,600 . -Refer to Table 7-9. Post the sales and cash receipts journals to the general ledger and accounts receivable sub-ledger. $2 / 10, \mathrm{n} 30$ , Invoice 316 . } \\ \text { 7 } & \text { Sold merchandise on credit to D. James for $\$ 900,2 / 20$ , n 30 , Invoice 317 . }\\ \text {8 } &\text {Borrowed $\$ 2,750$ by giving a note to the bank. }\\ \text {13 } &\text {Owner invested an additional $\$ 3,500$ cash into the business. }\\ \text { 18 } &\text { Sold merchandise to $M$ . Garnett for $\$ 230$ cash.}\\ \text { 22} &\text { Sold merchandise to $\mathrm{ABC}$ Co. $\$ 2,100$ , Invoice $318 \mathrm{n} / 30$ . }\\ \text {27 } & \text { Received payment from D. James for the July 7 purchase. }\\ \text {30 } &\text {Paid salaries of $\$ 1,600$ . }\\ \end{array} -Refer to Table 7-9. Post the sales and cash receipts journals to the general ledger and accounts receivable sub-ledger. " class="answers-bank-image d-inline" loading="lazy" > $2 / 10, \mathrm{n} 30$ , Invoice 316 . } \\ \text { 7 } & \text { Sold merchandise on credit to D. James for $\$ 900,2 / 20$ , n 30 , Invoice 317 . }\\ \text {8 } &\text {Borrowed $\$ 2,750$ by giving a note to the bank. }\\ \text {13 } &\text {Owner invested an additional $\$ 3,500$ cash into the business. }\\ \text { 18 } &\text { Sold merchandise to $M$ . Garnett for $\$ 230$ cash.}\\ \text { 22} &\text { Sold merchandise to $\mathrm{ABC}$ Co. $\$ 2,100$ , Invoice $318 \mathrm{n} / 30$ . }\\ \text {27 } & \text { Received payment from D. James for the July 7 purchase. }\\ \text {30 } &\text {Paid salaries of $\$ 1,600$ . }\\ \end{array} -Refer to Table 7-9. Post the sales and cash receipts journals to the general ledger and accounts receivable sub-ledger. " class="answers-bank-image d-inline" loading="lazy" >

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 Accts Rec Date Invoice \# Customer Post DR COGS DR/ Ref. Sales Rev CR Inventory CR Jan 4 1000 Reed, A. \ 5,000 \ 4,100 6 1001 Charles, B. 1,240 990 13 1002 Reed, A. 3,200 2,800 20 1003 Williams, D. 900 820 22 1004 Charles, B. 5,100 4,600 Total \ 15,440 \ 13,310 Cash Receipts Journal Date Cash Debit Sales Revenue Credit Accts. Rec. Credit Invoice \# Customer COGS DR/ Inventory CR Jan 5 \ 3,300 \ 3,300 \ 2,700 10 5,000 \ 5,000 1000 Reed, A. 14 9,000 9,000 8,000 18 1,240 1,240 1001 Charles,B. \ 18,540 \ 12,300 \ 6,240 \ 10,700 -Refer to Table 7-8 at the end of January, what was the balance in Inventory? Assume no new inventory was acquired during January.

A subsidiary ledger is a group of accounts that provides supporting details on individual balances, the total of which appears in a general ledger account.

Laoshan Company uses a cash payments journal for all its payments by cheque. At the end of December, the journal shows the following information: Date Cheque \# Account Debited Other Accounts Debit Accounts Payable Debit Cash Credit Dec 3 4022 Supplies \ 460 \ 460 9 4023 Adams Co. \ 1,200 1,200 15 4024 Repair expense 145 145 19 4025 Inventory 2,400 2,400 21 4026 Misc. expense 75 75 23 4027 McDermott Co. 3,600 3,600 Total \ 3,080 \ 4,800 \ 7,880 When this journal is posted, what entry will be made to the accounts payable control account?

Customers' individual accounts included in a subsidiary ledger are said to be controlled by the Accounts Receivable account in the:

Computerized accounting systems are organized by:

Transactions must be recorded in either the general journal or a special journal, but not both.

Parker Industrial Corp. uses a sales journal to record each sale transaction. On January 19, the sales journal was as you see below. Later in the month, two additional sales were made as follows: Inv\# Amount Customer Cost of Goods 3079 \ 444 Lanier Service, Inc. \ 201 3080 709 June, Laura 366 Please enter the above two transactions into the sales journal and calculate the totals for the month. Sales Journal Date Jan 12 19 24 29 Invoice \# 3077 3078 Customer Fogelin, Any Faass Products Co. Total Post Ref. Accts Rec DR / Sales Rev CR \ 2,400 1,012 COGSDR Inventory CR \ 960 800

The end-of-month balance in Dryer Company's cash receipts journal cash column is $22,630. How will this column be posted?

Internal controls are the methods and procedures used to safeguard assets and eliminate waste.