Question 1

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

Accepted Answer

The two-step procedure begins after the

Question 2

A special journal is used to record and post transactions of a similar type.

Accepted Answer

A) True 
 B)False

Question 3

Segment return on assets is segment operating income divided by segment average assets.

Accepted Answer

A) True 
 B)False

Question 4

A record that contains all accounts (with amounts)of a company is the:

Accepted Answer

A) General ledger. 
B) General journal. 
C) Special ledger. 
D) Special journal. 
E) Column balance ledger. 
A) General ledger. 
B) General journal. 
C) Special ledger. 
D) Special journal. 
E) Column balance ledger.

Question 5

Match between columns
                        Premises: Journal entries
Computer hard drive
Electronic files
Financial statements
Employee paychecks
Software
Invoice from suppliers
Computer keyboard
Computer monitor
Journals

Accepted Answer

The Answer of Input devices and Information storage and Output is...

Question 6

Input devices are the means to make accounting information available to users.

Accepted Answer

A) True 
 B)False

Question 7

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 8

________________________ refers to the programs that help managers direct a company's vital operations.

Accepted Answer

Enterprise

Question 9

The sales journal is used for recording:

Accepted Answer

A) Credit purchases. 
B) Credit sales. 
C) Cash sales. 
D) Cash purchases. 
E) Cash receipts. 
A) Credit purchases. 
B) Credit sales. 
C) Cash sales. 
D) Cash purchases. 
E) Cash receipts.

Question 10

The purchases journal is used for recording:

Accepted Answer

A) Credit purchases. 
B) Credit sales. 
C) Cash sales. 
D) Cash purchases. 
E) Cash disbursements. 
A) Credit purchases. 
B) Credit sales. 
C) Cash sales. 
D) Cash purchases. 
E) Cash disbursements.

Question 11

Enterprise-resource planning software:

Accepted Answer

A) Refers to programs that help manage a company's vital operations. 
B) Is another name for spreadsheet programs. 
C) Uses batch processing of business information. 
D) Is substantially declining in use. 
E) Is another name for database programs. 
A) Refers to programs that help manage a company's vital operations. 
B) Is another name for spreadsheet programs. 
C) Uses batch processing of business information. 
D) Is substantially declining in use. 
E) Is another name for database programs.

Question 12

The compatibility principle requires that an accounting system report useful,understandable,timely,and pertinent information for effective decision making.

Accepted Answer

A) True 
 B)False

Question 13

The Woodview Company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.They use the periodic inventory method.The following transactions occurred during the month of December:
   Record these transactions using the journals below.

Accepted Answer

The answer of The Woodview Company uses a sales journal,purchases...

Question 14

Which of the following is not a special journal:

Accepted Answer

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

Question 15

What are controlling accounts and subsidiary ledgers?
 What is the relationship between them?

Accepted Answer

The controlling accounts are part of the

Question 16

A company borrowed $50,000 from a bank by signing a long-term note payable.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 17

The difference in the sales journal between the perpetual and periodic inventory systems is that a column is used to record cost of goods sold and inventory amounts for each sale under the perpetual system but not the periodic system.

Accepted Answer

A) True 
 B)False

Question 18

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Accepted Answer

A) True 
 B)False

Question 19

Kala's Latin American segment had revenues of $2,089 million,operating income of $1,033 million,and average assets of $1,443 million.The Latin American segment return on assets is:

Accepted Answer

A) 49.4% 
B) 69.0% 
C) 71.6% 
D) 139.7% 
E) 144.8% 
A) 49.4% 
B) 69.0% 
C) 71.6% 
D) 139.7% 
E) 144.8%

Question 20

Match between columns
                        Premises: Purchased a display rack on account for $4,700.
A customer returned a $250 item purchased on account.
Recorded cash sales of $14,700.
Paid a utility bill for $3,400 cash.
Paid $65,000 cash in wages and salaries.
Purchased $1,590 of store supplies on account.
Borrowed $5,000 cash from the bank.
Recorded depreciation on store equipment of $4,000.
Returned defective inventory purchased on account,$2,900.
Purchased merchandise on account,$2,700.

Accepted Answer

The Answer of Cash receipts journal and General journal and is...

Exam 7: Accounting Information Systems

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

A special journal is used to record and post transactions of a similar type.

Segment return on assets is segment operating income divided by segment average assets.

A record that contains all accounts (with amounts)of a company is the:

Input devices are the means to make accounting information available to users.

A columnar journal is any journal with only one column.

________________________ refers to the programs that help managers direct a company's vital operations.

The sales journal is used for recording:

The purchases journal is used for recording:

Enterprise-resource planning software:

The compatibility principle requires that an accounting system report useful,understandable,timely,and pertinent information for effective decision making.

The Woodview Company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.They use the periodic inventory method.The following transactions occurred during the month of December: Record these transactions using the journals below.

Which of the following is not a special journal:

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

A company borrowed $50,000 from a bank by signing a long-term note payable.Identify the journal the transaction would be recorded in.

The difference in the sales journal between the perpetual and periodic inventory systems is that a column is used to record cost of goods sold and inventory amounts for each sale under the perpetual system but not the periodic system.

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Kala's Latin American segment had revenues of $2,089 million,operating income of $1,033 million,and average assets of $1,443 million.The Latin American segment return on assets is:

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

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