Question 1

The general journal is used for transactions not covered by special journals and for adjusting,closing,and correcting entries.

Accepted Answer

A) True 
 B)False

Question 2

All of the following statements regarding input devices are true except:

Accepted Answer

A) Input devices capture information from source documents and enable its transfer to the system's information processing component. 
B) Input devices convert data on source documents from written form to a form usable for the system. 
C) Input devices include keyboards, scanners, and modems. 
D) Input devices include journal entries. 
E) Input devices are always reliable and no controls are needed to verify accuracy of input. 
A) Input devices capture information from source documents and enable its transfer to the system's information processing component. 
B) Input devices convert data on source documents from written form to a form usable for the system. 
C) Input devices include keyboards, scanners, and modems. 
D) Input devices include journal entries. 
E) Input devices are always reliable and no controls are needed to verify accuracy of input.

Question 3

____________________ is the accounting system component that keeps data in a form accessible to information processors.

Accepted Answer

The answer of ____________________ is the accounting system component that...

Question 4

Equipment,inventory,and investments are other accounts that can include detailed information in a subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 5

After posting is completed,there may be an error if:

Accepted Answer

A) The sum of the customer account balances does not equal the total in the sales journal. 
B) The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
C) The sum of the customer account balances does not equal the general ledger Accounts Receivable controlling account balance. 
D) The balance in the sales journal does not equal the Accounts Receivable account balance. 
E) The sum of the accounts receivable ledger does not equal the balance in the sales journal. 
A) The sum of the customer account balances does not equal the total in the sales journal. 
B) The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
C) The sum of the customer account balances does not equal the general ledger Accounts Receivable controlling account balance. 
D) The balance in the sales journal does not equal the Accounts Receivable account balance. 
E) The sum of the accounts receivable ledger does not equal the balance in the sales journal.

Question 6

Special journals are designed in a manner that is best suited for each business,so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Accepted Answer

A) True 
 B)False

Question 7

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column.The error should be discovered:

Accepted Answer

A) When the purchases journal is posted to the general ledger. 
B) When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C) When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account. 
D) When the creditors receive their payments. 
E) When the financial statements are prepared. 
A) When the purchases journal is posted to the general ledger. 
B) When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C) When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account. 
D) When the creditors receive their payments. 
E) When the financial statements are prepared.

Question 8

For a retailer required to collect sales taxes from customers,all of the following adaptations would be made to the sales journal except:

Accepted Answer

A) Column totals would continue to be posted as usual. 
B) A Sales Taxes Payable credit column would be added. 
C) There would be a separate Accounts Receivable debit column. 
D) A Sales Taxes Payable debit column would be added. 
E) There would be a separate Sales credit column. 
A) Column totals would continue to be posted as usual. 
B) A Sales Taxes Payable credit column would be added. 
C) There would be a separate Accounts Receivable debit column. 
D) A Sales Taxes Payable debit column would be added. 
E) There would be a separate Sales credit column.

Question 9

A company purchased equipment costing $32,000 on credit.Identify the journal the transaction would be recorded in.

Accepted Answer

A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal. 
A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal.

Question 10

What is purpose of footing and crossfooting the column totals in special journals?

Accepted Answer

To foot a column of numbers is

Question 11

A company issued a check for $7,900 in payment of the salaries expense for the last half of the month.Identify the journal the transaction would be recorded in.

Accepted Answer

A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal. 
A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal.

Question 12

Posting debits from the Sales journal to Accounts Receivable twice - once to the general ledger account Accounts Receivable and once to the customer's subsidiary account - violates the accounting equation of debits equal credits.

Accepted Answer

A) True 
 B)False

Question 13

Most companies use batch processing instead of online processing because batch processing immediately updates databases.

Accepted Answer

A) True 
 B)False

Question 14

The Accounts Payable account in the general ledger is:

Accepted Answer

A) A controlling account for the subsidiary accounts payable ledger. 
B) The account that controls the purchases journal. 
C) The subsidiary account to the purchases journal. 
D) Part of a special journal. 
E) Part of a subsidiary ledger. 
A) A controlling account for the subsidiary accounts payable ledger. 
B) The account that controls the purchases journal. 
C) The subsidiary account to the purchases journal. 
D) Part of a special journal. 
E) Part of a subsidiary ledger.

Question 15

To be sure that total debits and credits in a columnar journal are equal,before posting we should:

Accepted Answer

A) Crossfoot. 
B) Foot. 
C) Journalize. 
D) Post. 
E) Reconcile. 
A) Crossfoot. 
B) Foot. 
C) Journalize. 
D) Post. 
E) Reconcile.

Question 16

An accounts receivable ledger is:

Accepted Answer

A) A subsidiary ledger that contains an account for each credit customer. 
B) A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding. 
C) A book of original entry that is designed and used for recording only a specified type of transaction. 
D) The ledger that contains the financial statement accounts of a business. 
E) A subsidiary ledger that contains a separate account for each creditor (supplier) to the company. 
A) A subsidiary ledger that contains an account for each credit customer. 
B) A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding. 
C) A book of original entry that is designed and used for recording only a specified type of transaction. 
D) The ledger that contains the financial statement accounts of a business. 
E) A subsidiary ledger that contains a separate account for each creditor (supplier) to the company.

Question 17

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________________________ and __________________ for each sale.This column is used in the perpetual system but not in the periodic.

Accepted Answer

answers c

Question 18

When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

Accepted Answer

A) True 
 B)False

Question 19

A company purchased $11,200 of merchandise on credit.Identify the journal the transaction would be recorded in.

Accepted Answer

A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal. 
A) Cash disbursements journal. 
B) Sales journal. 
C) Cash receipts journal. 
D) Purchases journal. 
E) General journal.

Question 20

Source documents:

Accepted Answer

A) Are input devices. 
B) Provide the basic information processed by an accounting system. 
C) Cannot be electronic files. 
D) Store processed information for future use. 
E) Cannot be paper documents. 
A) Are input devices. 
B) Provide the basic information processed by an accounting system. 
C) Cannot be electronic files. 
D) Store processed information for future use. 
E) Cannot be paper documents.

Exam 7: Accounting Information Systems

The general journal is used for transactions not covered by special journals and for adjusting,closing,and correcting entries.

All of the following statements regarding input devices are true except:

____________________ is the accounting system component that keeps data in a form accessible to information processors.

Equipment,inventory,and investments are other accounts that can include detailed information in a subsidiary ledger.

After posting is completed,there may be an error if:

Special journals are designed in a manner that is best suited for each business,so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column.The error should be discovered:

For a retailer required to collect sales taxes from customers,all of the following adaptations would be made to the sales journal except:

A company purchased equipment costing $32,000 on credit.Identify the journal the transaction would be recorded in.

What is purpose of footing and crossfooting the column totals in special journals?

A company issued a check for $7,900 in payment of the salaries expense for the last half of the month.Identify the journal the transaction would be recorded in.

Posting debits from the Sales journal to Accounts Receivable twice - once to the general ledger account Accounts Receivable and once to the customer's subsidiary account - violates the accounting equation of debits equal credits.

Most companies use batch processing instead of online processing because batch processing immediately updates databases.

The Accounts Payable account in the general ledger is:

To be sure that total debits and credits in a columnar journal are equal,before posting we should:

An accounts receivable ledger is:

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________________________ and __________________ for each sale.This column is used in the perpetual system but not in the periodic.

When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

A company purchased $11,200 of merchandise on credit.Identify the journal the transaction would be recorded in.

Source documents:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _______ and for each sale.This column is used in the perpetual system but not in the periodic.