Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Hardware is the electronic equipment that includes:

Accepted Answer

A) computers, monitors, printers and the network. 
B) disk drives, software, and servers. 
C) servers, databases, and software. 
D) servers and software only. 
A) computers, monitors, printers and the network. 
B) disk drives, software, and servers. 
C) servers, databases, and software. 
D) servers and software only.

Question 3

In a computerized accounting system, the posting of journal entries performed on a continuous basis is referred to as:

Accepted Answer

A) batch processing. 
B) on-line processing. 
C) quick processing. 
D) accuracy processing. 
A) batch processing. 
B) on-line processing. 
C) quick processing. 
D) accuracy processing.

Question 4

The individual amounts in the accounts payable credit column of the purchases journal are posted:

Accepted Answer

A) individually to the accounts payable account in the general ledger. 
B) individually to the purchases account in the general ledger. 
C) individually to the accounts payable subsidiary ledger. 
D) in total to the accounts payable subsidiary ledger. 
A) individually to the accounts payable account in the general ledger. 
B) individually to the purchases account in the general ledger. 
C) individually to the accounts payable subsidiary ledger. 
D) in total to the accounts payable subsidiary ledger.

Question 5

Clooney Enterprises received a tax refund cheque in the mail and immediately deposited it in the bank. Assuming the use of special journals, this entry would be recorded in the:

Accepted Answer

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

Question 6

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}{c}
\begin{array}{|l|}
\hline\
\
\text { Date }\
\hline\text {Jan} 4 \
\hline 6 \
\hline 13 \
\hline 20 \
\hline 22 \
\hline\ 
\hline
\end{array}
\begin{array}{l|}
\hline\
\
\text { Invoice \# }\
\hline 1000 \
\hline 1001 \
\hline 1002 \
\hline 1003 \
\hline 1004 \
\hline \
\hline 
\end{array}
\begin{array}{l|}
\hline\
\
\text {Customer}\
\hline\text {Reed, A.}\
\hline\text {Charles, $ B $.}\
\hline\text {Reed, A.}\
\hline\text {Williams, D.}\
\hline\text {Charles, B.}\
\hline\text {Total}\
\hline 
\end{array}
\begin{array}{l|}
\hline\
\text {Post}\
\text {Ref.}\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline
\end{array}
\begin{array}{l|}
\hline\text {Accts Rec}\
\text {$ \mathrm{DR} / $}\
\text {Sales Rev CR}\
\hline \$ 5,000 \
 \hline 1,240 \
 \hline 3,200 \ 
\hline 900 \
 \hline 5,100 \
 \hline \$ 15,440\
\hline 
\end{array}
\begin{array}{l|}
\hline \
\text {COGS DR/ }\
\text { Inventory CR}\
\hline \$ 4,100\
\hline 990 \
\hline 2,800 \
\hline 820 \
\hline 4,600 \
\hline \$ 13,310  \
\hline
\end{array}
\end{array}$

Cash Receipts Journal
\(\begin{array}{c}
\begin{array}{|l|}
\hline\
\
 \text {Date}\
\hline \text {Jan 5}\
\hline10\
\hline14\
\hline\
18\
\hline\
\hline 
\end{array}
\begin{array}{l|}
\hline\
 \text {Cash}\
 \text {Debit}\
\hline\$3,300\
\hline5,000\
\hline9,000\
\hline\
1,240\
\hline\$ 18,540 \
\hline 
\end{array}
\begin{array}{l|}
\hline\
\text {Sales Revenue}\
\text {Credit}\
\hline \$ 3,300 \
\hline\
\hline9,000\
\hline\
\
\hline\$ 12,300 \
\hline 
\end{array}
\begin{array}{l|}
\hline \text {Accts.}\
\text {Rec.}\
\text {Credit}\
\hline\
\hline \$ 5,000\
\hline\
\hline\
1,240\
\hline\$ 6,240\
\hline
\end{array}
\begin{array}{l|}
\hline \
\
\text {Invoice \#}\
\hline \
\hline 1000\
\hline \
\hline \
1001\
\hline \
\hline  
\end{array}
\begin{array}{l|}
\hline \
\
\text {Customer}\
\hline \
\hline\text { Reed, A.}\
\hline \
\hline\text {Charles,}\
\text { B.}\
\hline \
\hline 
\end{array}
\begin{array}{l|}
\hline \
\text {COGS DR/}\
\text {Inv entory CR}\
\hline\$ 2,700 \
\hline\
\hline8,000\
\hline\
\
\hline\$ 10,700 \
\hline 
\end{array}
\end{array}\)

-Refer to Table 7-8, what was the gross margin for January?

Accepted Answer

[($15,440 + $12,300)

Question 7

Table 7-9
The following transactions occurred during the month of July for Lancer Company. $\begin{array}{llcc}
  \text {July 1  } &\text {Sold Merchandise on credit for $ \$ 3,100 $ to Chris Co, $ 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. Prepare a schedule for accounts receivable. $$\begin{array}{l}
\text { Schedule of A ccounts Receivab le }\
\begin{array} { | l | l | l | } 
\hline ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~& ~~~~~~~~~~~~&~~~~~~~~~~ \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

The answer of Table 7-9
The following transactions occurred during the...

Question 8

The sales journal is used for the sale of:

Accepted Answer

A) merchandise for cash. 
B) merchandise on account. 
C) assets other than merchandise for cash. 
D) assets other than merchandise on account. 
A) merchandise for cash. 
B) merchandise on account. 
C) assets other than merchandise for cash. 
D) assets other than merchandise on account.

Question 9

Table 7-6
Provincewide Milling Company uses a sales journal. On June 2, the sales journal appears as you see below.
Sales Journal $\begin{array}{|l|l|l|l|l|r|}
\hline
& & & &\text { Accts Rec } & \
\text { Date } & \text { Invoice \# } & \text { Customer } & \text { Post } & \text { DR } & \text { COGS DR/ } \
&&&\text { Ref. } & \text { Sales Rev CR } & \text { Inventory CR }\
\hline \text { June 2 } & 909 & \text { Richardson Products } & & \$ 4,200 & \$ 1,090 \
\hline & & & & & \
\hline & & & & & \
\hline & & & & & \
\hline & & \text { Total } & & & \
\hline
\end{array}$ Other sales that took place in June are as follows: $$\begin{array} { | c | c | c | c | } 
\hline \text { Inv \# } & \text { Sales Amount } & \text { Customer } & \text { Cost of Goods Sold } \
\hline 910 & \$ 880 & \text { Anton, Michael } & \$ 390 \
\hline 911 & 1,120 & \text { A1 Repairs } & 560 \
\hline 912 & 500 & \text { Thompson, Al } & 220 \
\hline
\end{array}$$
-Refer to Table 7-6, at the end of the month, what entry was made to accounts receivable?

Accepted Answer

A) credit $6,700 
B) debit $6,700 
C) debit $4,200 
D) credit $2,460 
A) credit $6,700 
B) debit $6,700 
C) debit $4,200 
D) credit $2,460

Question 10

The sum of the account balances in the accounts receivable subsidiary ledger should equal the balance in the accounts receivable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 11

Table 7-9
The following transactions occurred during the month of July for Lancer Company. $\begin{array}{llcc}
  \text {July 1  } &\text {Sold Merchandise on credit for $ \$ 3,100 $ to Chris Co, $ 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. Record transactions in the sales and cash receipts journals only (foot and cross-foot journals). $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $ $\text { Sales Journal}$$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Page 2}$
$\begin{array}{c|c|l|l|c|}
\hline \text { Date } & \begin{array}{c}
\text { Account } \
\text { Debited }
\end{array} & \text { Invoice Number } & \text { PR } & \begin{array}{c}
\text { Accounts Receivab le Dr. } \
\text { Sales Cr. }
\end{array} \
\hline & & & & \
\hline & & & &0 \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$

$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Cash Receipts Journal }$$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Page 2}$
$\begin{array}{c|c|c|c|c|c|c|c|c|}
\hline \text { Date } & \begin{array}{c}
\text { Account } \
\text { Credited }
\end{array} & \text { PR } & \text { Explanation } & \begin{array}{c}
\text { Cash } \
\text { Dr. }
\end{array} & \begin{array}{c}
\text { Sales } \
\text { Disc. } \
\text { Dr. }
\end{array} & \begin{array}{c}
\text { Accts. } \
\text { Rec. } \
\text { Cr. }
\end{array} & \begin{array}{c}
\text { Sales } \
\text { Cr. }
\end{array} & \begin{array}{c}
\text { Other } \
\text { Accts. } \
\text { Cr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & &\
\hline 
\end{array}$

Accepted Answer

The answer of Table 7-9
The following transactions occurred during the...

Question 12

Posting the entries from the sales journal to the accounts receivable subsidiary ledger should be done:

Accepted Answer

A) on a weekly basis. 
B) only at the end of the accounting period. 
C) on a daily basis. 
D) at the end of each month. 
A) on a weekly basis. 
B) only at the end of the accounting period. 
C) on a daily basis. 
D) at the end of each month.

Question 13

Define, in a few words, the meaning of internal control.

Accepted Answer

Internal control is an organizational pl

Question 14

Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased merchandise on account. The sales invoice was for $3,000, and credit terms were 3/15 n/30. The cost of the merchandise was $1,800. In the cash receipts journal:

Accepted Answer

A) $3,000 will appear in the sales revenue credit column. 
B) $3,000 will appear in the accounts receivable debit column. 
C) $3,000 will appear in the accounts receivable credit column. 
D) $90 will appear in the sales discounts debit column. 
A) $3,000 will appear in the sales revenue credit column. 
B) $3,000 will appear in the accounts receivable debit column. 
C) $3,000 will appear in the accounts receivable credit column. 
D) $90 will appear in the sales discounts debit column.

Question 15

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}{c}
\begin{array}{|l|}
\hline\
\
\text { Date }\
\hline\text {Jan} 4 \
\hline 6 \
\hline 13 \
\hline 20 \
\hline 22 \
\hline\ 
\hline
\end{array}
\begin{array}{l|}
\hline\
\
\text { Invoice \# }\
\hline 1000 \
\hline 1001 \
\hline 1002 \
\hline 1003 \
\hline 1004 \
\hline \
\hline 
\end{array}
\begin{array}{l|}
\hline\
\
\text {Customer}\
\hline\text {Reed, A.}\
\hline\text {Charles, $ B $.}\
\hline\text {Reed, A.}\
\hline\text {Williams, D.}\
\hline\text {Charles, B.}\
\hline\text {Total}\
\hline 
\end{array}
\begin{array}{l|}
\hline\
\text {Post}\
\text {Ref.}\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline
\end{array}
\begin{array}{l|}
\hline\text {Accts Rec}\
\text {$ \mathrm{DR} / $}\
\text {Sales Rev CR}\
\hline \$ 5,000 \
 \hline 1,240 \
 \hline 3,200 \ 
\hline 900 \
 \hline 5,100 \
 \hline \$ 15,440\
\hline 
\end{array}
\begin{array}{l|}
\hline \
\text {COGS DR/ }\
\text { Inventory CR}\
\hline \$ 4,100\
\hline 990 \
\hline 2,800 \
\hline 820 \
\hline 4,600 \
\hline \$ 13,310  \
\hline
\end{array}
\end{array}$

Cash Receipts Journal
\(\begin{array}{c}
\begin{array}{|l|}
\hline\
\
 \text {Date}\
\hline \text {Jan 5}\
\hline10\
\hline14\
\hline\
18\
\hline\
\hline 
\end{array}
\begin{array}{l|}
\hline\
 \text {Cash}\
 \text {Debit}\
\hline\$3,300\
\hline5,000\
\hline9,000\
\hline\
1,240\
\hline\$ 18,540 \
\hline 
\end{array}
\begin{array}{l|}
\hline\
\text {Sales Revenue}\
\text {Credit}\
\hline \$ 3,300 \
\hline\
\hline9,000\
\hline\
\
\hline\$ 12,300 \
\hline 
\end{array}
\begin{array}{l|}
\hline \text {Accts.}\
\text {Rec.}\
\text {Credit}\
\hline\
\hline \$ 5,000\
\hline\
\hline\
1,240\
\hline\$ 6,240\
\hline
\end{array}
\begin{array}{l|}
\hline \
\
\text {Invoice \#}\
\hline \
\hline 1000\
\hline \
\hline \
1001\
\hline \
\hline  
\end{array}
\begin{array}{l|}
\hline \
\
\text {Customer}\
\hline \
\hline\text { Reed, A.}\
\hline \
\hline\text {Charles,}\
\text { B.}\
\hline \
\hline 
\end{array}
\begin{array}{l|}
\hline \
\text {COGS DR/}\
\text {Inv entory CR}\
\hline\$ 2,700 \
\hline\
\hline8,000\
\hline\
\
\hline\$ 10,700 \
\hline 
\end{array}
\end{array}\)

-Refer to Table 7-8 and provide a schedule balancing the accounts receivable subsidiary ledger to the accounts receivable control account.

Accepted Answer

The answer of Table 7-8 Nordin Avionics
J. Nordin Avionics began...

Question 16

The ________ journal is used by the seller to record the return by a customer of merchandise sold for cash.

Accepted Answer

A) general 
B) sales 
C) cash receipts 
D) cash payments 
A) general 
B) sales 
C) cash receipts 
D) cash payments

Question 17

Assuming the use of special journals, the borrowing of $80,000 from the bank by signing a note payable would be recorded in the:

Accepted Answer

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

Question 18

A combination of personnel, records, and procedures that a business uses to provide financial data is known as:

Accepted Answer

A) an accounting information system. 
B) input. 
C) output. 
D) source documents. 
A) an accounting information system. 
B) input. 
C) output. 
D) source documents.

Question 19

An effective accounting information system:

Accepted Answer

A) allows employees flexibility in setting the working hours. 
B) guarantees a company will not go bankrupt. 
C) includes control, compatibility, flexibility, and a favourable cost/benefit relationship. 
D) promotes operational efficiency. 
E) will prevent fraud in all cases. 
A) allows employees flexibility in setting the working hours. 
B) guarantees a company will not go bankrupt. 
C) includes control, compatibility, flexibility, and a favourable cost/benefit relationship. 
D) promotes operational efficiency. 
E) will prevent fraud in all cases.

Question 20

What are the benefits of studying a manual accounting system given that most companies have computerized accounting systems?

Accepted Answer

Because the accounting is the same regar

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

Hardware is the electronic equipment that includes:

In a computerized accounting system, the posting of journal entries performed on a continuous basis is referred to as:

The individual amounts in the accounts payable credit column of the purchases journal are posted:

Clooney Enterprises received a tax refund cheque in the mail and immediately deposited it in the bank. Assuming the use of special journals, this entry would be recorded in the:

The sales journal is used for the sale of:

The sum of the account balances in the accounts receivable subsidiary ledger should equal the balance in the accounts receivable account in the general ledger.

Posting the entries from the sales journal to the accounts receivable subsidiary ledger should be done:

Define, in a few words, the meaning of internal control.

Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased merchandise on account. The sales invoice was for $3,000, and credit terms were 3/15 n/30. The cost of the merchandise was $1,800. In the cash receipts journal:

The ________ journal is used by the seller to record the return by a customer of merchandise sold for cash.

Assuming the use of special journals, the borrowing of $80,000 from the bank by signing a note payable would be recorded in the:

A combination of personnel, records, and procedures that a business uses to provide financial data is known as:

An effective accounting information system:

What are the benefits of studying a manual accounting system given that most companies have computerized accounting systems?

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

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

Hardware is the electronic equipment that includes:

In a computerized accounting system, the posting of journal entries performed on a continuous basis is referred to as:

The individual amounts in the accounts payable credit column of the purchases journal are posted:

Clooney Enterprises received a tax refund cheque in the mail and immediately deposited it in the bank. Assuming the use of special journals, this entry would be recorded in the:

The sales journal is used for the sale of:

The sum of the account balances in the accounts receivable subsidiary ledger should equal the balance in the accounts receivable account in the general ledger.

Posting the entries from the sales journal to the accounts receivable subsidiary ledger should be done:

Define, in a few words, the meaning of internal control.

Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased merchandise on account. The sales invoice was for $3,000, and credit terms were 3/15 n/30. The cost of the merchandise was $1,800. In the cash receipts journal:

The ________ journal is used by the seller to record the return by a customer of merchandise sold for cash.

Assuming the use of special journals, the borrowing of $80,000 from the bank by signing a note payable would be recorded in the:

A combination of personnel, records, and procedures that a business uses to provide financial data is known as:

An effective accounting information system:

What are the benefits of studying a manual accounting system given that most companies have computerized accounting systems?

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