Question 1

Which of the following best describes the action known as balancing the ledgers?

Accepted Answer

A) totaling the subsidiary account balances and cross checking against the main account balance 
B) making sure that the ending balance in Sales is equal to the ending balance in Accounts receivable 
C) identifying the differences between the cash balance in the ledger and the bank statement 
D) totaling the expense account balances and cross checking against total expenses shown on the income statement 
A) totaling the subsidiary account balances and cross checking against the main account balance 
B) making sure that the ending balance in Sales is equal to the ending balance in Accounts receivable 
C) identifying the differences between the cash balance in the ledger and the bank statement 
D) totaling the expense account balances and cross checking against total expenses shown on the income statement

Question 2

Given the following unidentified journal, write an explanation for each transaction. $~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { Debits } } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ { \text { Credits } }$
$\begin{array} { | c | r | r | r | r | r | r | r | } 
\hline \text { Date } & \text { Cash } & \begin{array} { c } 
\text { Sales } \
\text { Dis. }
\end{array} & \begin{array} { c } 
\text { Acc. } \
\text { Rec. }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Rev. }
\end{array} & \text { Other Acct. } & \text { Amount } & \begin{array} { l } 
\text { CGS Dr. } \
\text { Inv. Cr. }
\end{array} \
\hline \text { Aug. 8 } & 3,000 & & & 3,000 & & & 1,250 \
\hline 10 & 2,500 & & & & \text { Ruff, Capital } & 2,500 & \
\hline 15 & 340 & & 340 & & \text { Lucille Adams } & & \
\hline 27 & 490 & 10 & 500 & & \text { Marshall Field } & & \
\hline 31 & \underline { 6,330 } & \underline { 10 } & \text { 840 } & \text { 3,000 } & \text { Totals } & \underline { 2,500 } & \underline { 1,250 } \
\hline
\end{array}$

Accepted Answer

Aug. 8 Sold merchandise with a cost of $

Question 3

The sales journal contains columns for:

Accepted Answer

A) accounts receivable/sales revenue and supplies/inventory. 
B) accounts receivable/sales revenue and inventory/accounts payable. 
C) accounts receivable/sales and cost of goods sold/inventory. 
D) accounts receivable/inventory and cost of goods sold/accounts payable. 
A) accounts receivable/sales revenue and supplies/inventory. 
B) accounts receivable/sales revenue and inventory/accounts payable. 
C) accounts receivable/sales and cost of goods sold/inventory. 
D) accounts receivable/inventory and cost of goods sold/accounts payable.

Question 4

The accounts receivable credit column of the cash receipts journal is:

Accepted Answer

A) posted in summary only at the end of the month. 
B) posted by individual amounts only at the end of the month. 
C) not posted. 
D) posted in summary at the end of the month and by individual amounts on a daily basis 
A) posted in summary only at the end of the month. 
B) posted by individual amounts only at the end of the month. 
C) not posted. 
D) posted in summary at the end of the month and by individual amounts on a daily basis

Question 5

Which of the following is recorded in the cash payments journal?

Accepted Answer

A) cash receipt for services performed on account in an earlier period 
B) cash payment on an accounts payable 
C) adjusting entry for amortization 
D) adjusting entry for expired insurance 
A) cash receipt for services performed on account in an earlier period 
B) cash payment on an accounts payable 
C) adjusting entry for amortization 
D) adjusting entry for expired insurance

Question 6

The seller would record the return of merchandise sold on account in the sales journal.

Accepted Answer

A) True 
 B)False

Question 7

In a computerized accounting system, the posting to the general accounts ledger is done automatically.

Accepted Answer

A) True 
 B)False

Question 8

Big Industries purchased merchandise from Small Company paying $5,000 in cash and promising to pay the remaining $5,000 in 30 days. Assuming the use of special journals, Big Industries would record this entry in the:

Accepted Answer

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

Question 9

Describe in detail the process of posting data from the sales journal of a company using a perpetual inventory system. Where does it go, when is it posted, and what steps are followed?

Accepted Answer

The sales journal records credit sales.

Question 10

Amounts are posted individually from the purchases journal to the:

Accepted Answer

A) cash account in the general ledger. 
B) inventory account in the general ledger. 
C) accounts payable account in the general ledger. 
D) accounts payable subsidiary ledger. 
A) cash account in the general ledger. 
B) inventory account in the general ledger. 
C) accounts payable account in the general ledger. 
D) accounts payable subsidiary ledger.

Question 11

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 12

The system of electronic linkages that allows different computers to share the same information is called a worksheet.

Accepted Answer

A) True 
 B)False

Question 13

Design of an accounting system begins with the:

Accepted Answer

A) previous year's financial statements. 
B) use of a firewall. 
C) chart of accounts. 
D) opening trial balance. 
A) previous year's financial statements. 
B) use of a firewall. 
C) chart of accounts. 
D) opening trial balance.

Question 14

An advantage of enterprise resource planning (ERP)systems is the integration of all company activities from purchasing to production to customer service.

Accepted Answer

A) True 
 B)False

Question 15

In a manual accounting system the posting from a sales journal includes daily posting for cash transactions.

Accepted Answer

A) True 
 B)False

Question 16

With a computerized accounting system, the accounting cycle has several additional steps.

Accepted Answer

A) True 
 B)False

Question 17

Special journals save much time in recording repetitive transactions and posting to the ledgers.

Accepted Answer

A) True 
 B)False

Which of the following best describes the action known as balancing the ledgers?

The sales journal contains columns for:

The accounts receivable credit column of the cash receipts journal is:

Which of the following is recorded in the cash payments journal?

The seller would record the return of merchandise sold on account in the sales journal.

In a computerized accounting system, the posting to the general accounts ledger is done automatically.

Big Industries purchased merchandise from Small Company paying $5,000 in cash and promising to pay the remaining $5,000 in 30 days. Assuming the use of special journals, Big Industries would record this entry in the:

Describe in detail the process of posting data from the sales journal of a company using a perpetual inventory system. Where does it go, when is it posted, and what steps are followed?

Amounts are posted individually from the purchases journal to the:

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

The system of electronic linkages that allows different computers to share the same information is called a worksheet.

Design of an accounting system begins with the:

An advantage of enterprise resource planning (ERP)systems is the integration of all company activities from purchasing to production to customer service.

In a manual accounting system the posting from a sales journal includes daily posting for cash transactions.

With a computerized accounting system, the accounting cycle has several additional steps.

Special journals save much time in recording repetitive transactions and posting to the ledgers.

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

Which of the following best describes the action known as balancing the ledgers?

The sales journal contains columns for:

The accounts receivable credit column of the cash receipts journal is:

Which of the following is recorded in the cash payments journal?

The seller would record the return of merchandise sold on account in the sales journal.

In a computerized accounting system, the posting to the general accounts ledger is done automatically.

Big Industries purchased merchandise from Small Company paying $5,000 in cash and promising to pay the remaining $5,000 in 30 days. Assuming the use of special journals, Big Industries would record this entry in the:

Describe in detail the process of posting data from the sales journal of a company using a perpetual inventory system. Where does it go, when is it posted, and what steps are followed?

Amounts are posted individually from the purchases journal to the:

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

The system of electronic linkages that allows different computers to share the same information is called a worksheet.

Design of an accounting system begins with the:

An advantage of enterprise resource planning (ERP)systems is the integration of all company activities from purchasing to production to customer service.

In a manual accounting system the posting from a sales journal includes daily posting for cash transactions.

With a computerized accounting system, the accounting cycle has several additional steps.

Special journals save much time in recording repetitive transactions and posting to the ledgers.

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