Question 1

A control account ________.

Accepted Answer

A) does not appear on the balance sheet 
B) has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger 
C) is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements 
D) holds individual accounts that support a general ledger account 
A) does not appear on the balance sheet 
B) has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger 
C) is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements 
D) holds individual accounts that support a general ledger account

Question 2

Journalize the above transactions that should be recorded in the general journal.If a transaction should not be recorded in the general journal,identify the special journal that should be used.Assume the company uses the perpetual inventory system.

Accepted Answer

The answer of   
Journalize the above transactions that...

Question 3

Centium Corporation sold goods to John Dunn for $1,000 on account.Cost of goods sold was $745.Centium uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Accepted Answer

A) Accounts Receivable DR,Sales Revenue CR 
B) Cost of Goods Sold CR,Merchandise Inventory DR 
C) Cost of Goods Sold DR,Merchandise Inventory CR 
D) Sales Revenue DR,Accounts Receivable CR 
A) Accounts Receivable DR,Sales Revenue CR 
B) Cost of Goods Sold CR,Merchandise Inventory DR 
C) Cost of Goods Sold DR,Merchandise Inventory CR 
D) Sales Revenue DR,Accounts Receivable CR

Question 4

Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

Accepted Answer

A) True 
 B)False

Question 5

When posting entries from a purchases journal to the general ledger,________.

Accepted Answer

A) posting references are not shown in the subsidiary ledger 
B) the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger 
C) the amounts in the Other Accounts DR column are posted individually to the specific accounts 
D) entries are posted on a daily basis for all the accounts 
A) posting references are not shown in the subsidiary ledger 
B) the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger 
C) the amounts in the Other Accounts DR column are posted individually to the specific accounts 
D) entries are posted on a daily basis for all the accounts

Question 6

In a cash receipts journal,________.

Accepted Answer

A) cash sales are recorded in the Accounts Receivable CR column and the Cash DR column 
B) collections on account are recorded in the Accounts Receivable DR column and the Cash DR column 
C) the miscellaneous cash receipt transactions are ignored 
D) the cash sales are recorded in the Sales Revenue CR column 
A) cash sales are recorded in the Accounts Receivable CR column and the Cash DR column 
B) collections on account are recorded in the Accounts Receivable DR column and the Cash DR column 
C) the miscellaneous cash receipt transactions are ignored 
D) the cash sales are recorded in the Sales Revenue CR column

Question 7

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

Accepted Answer

A) True 
 B)False

Question 8

Credit sales of assets other than merchandise inventory occur infrequently and are recorded in the ________.

Accepted Answer

A) sales journal 
B) cash receipts journal 
C) accounts receivable journal 
D) general journal 
A) sales journal 
B) cash receipts journal 
C) accounts receivable journal 
D) general journal

Question 9

A subsidiary ledger is ________.

Accepted Answer

A) an accounting journal designed to record a specific type of transaction 
B) a created list of accounts used by a business entity to define each class of items for which cash is spent or received 
C) a complete record of business transactions recorded in a ledger over the life of a company 
D) a record of accounts that provide supporting details on individual balances,the total of which appears in a general ledger account 
A) an accounting journal designed to record a specific type of transaction 
B) a created list of accounts used by a business entity to define each class of items for which cash is spent or received 
C) a complete record of business transactions recorded in a ledger over the life of a company 
D) a record of accounts that provide supporting details on individual balances,the total of which appears in a general ledger account

Question 10

Depreciation expense is recorded in a ________.

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 11

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not typically shown as a separate column in a cash receipts journal that uses the perpetual inventory system?

Accepted Answer

A) Interest Revenue CR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Sales Revenue CR column 
D) Other Accounts CR column 
A) Interest Revenue CR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Sales Revenue CR column 
D) Other Accounts CR column

Question 13

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

Accepted Answer

A) Cost of Goods Sold DR 
B) Purchases DR 
C) Accounts Payable DR 
D) Merchandise Inventory DR 
A) Cost of Goods Sold DR 
B) Purchases DR 
C) Accounts Payable DR 
D) Merchandise Inventory DR

Question 14

Purchases on account are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 15

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 16

List and briefly discuss the three basic components of an accounting information system.

Accepted Answer

Source documents and input devices: Sour

Question 17

A source document provides the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an entry-level accounting software package?

Accepted Answer

A) Microsoft Word 
B) QuickBooks 
C) Cloud Computing 
D) Oracle® 
A) Microsoft Word 
B) QuickBooks 
C) Cloud Computing 
D) Oracle®

Question 19

Which of the following serves as the "journal of last resort?"

Accepted Answer

A) purchases journal 
B) sales journal 
C) general journal 
D) cash payments journal 
A) purchases journal 
B) sales journal 
C) general journal 
D) cash payments journal

Question 20

Entry-level accounting software ________.

Accepted Answer

A) can handle advanced processes and transactions 
B) is an affordable system that is difficult to use 
C) allows businesses to enter sales of services and merchandise inventory,record expenses,and produce financial statements 
D) integrates all of a company's functions,departments,and data into a single system 
A) can handle advanced processes and transactions 
B) is an affordable system that is difficult to use 
C) allows businesses to enter sales of services and merchandise inventory,record expenses,and produce financial statements 
D) integrates all of a company's functions,departments,and data into a single system

Exam 7: Accounting Information Systems

A control account ________.

Journalize the above transactions that should be recorded in the general journal.If a transaction should not be recorded in the general journal,identify the special journal that should be used.Assume the company uses the perpetual inventory system.

Centium Corporation sold goods to John Dunn for $1,000 on account.Cost of goods sold was $745.Centium uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

When posting entries from a purchases journal to the general ledger,________.

In a cash receipts journal,________.

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

Credit sales of assets other than merchandise inventory occur infrequently and are recorded in the ________.

A subsidiary ledger is ________.

Depreciation expense is recorded in a ________.

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Which of the following is not typically shown as a separate column in a cash receipts journal that uses the perpetual inventory system?

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

Purchases on account are recorded in the purchases journal.

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

List and briefly discuss the three basic components of an accounting information system.

A source document provides the evidence and data for accounting transactions.

Which of the following is an entry-level accounting software package?

Which of the following serves as the "journal of last resort?"

Entry-level accounting software ________.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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