Question 1

Briefly describe the three-step process of accounting system development.

Accepted Answer

The answer of Briefly describe the three-step process of accounting...

Question 2

The total of the accounts receivable subsidiary accounts and the account receivable controlling account should balance to each other at the end of the period.

Accepted Answer

A) True 
 B)False

Question 3

The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings?

Accepted Answer

Accounts Receivable and Cash are not nee

Question 4

The phase of accounting system installation in which the information needs of people in the organization are taken into account is

Accepted Answer

A)  analysis 
B)  design 
C)  implementation 
D)  installation 
A)  analysis 
B)  design 
C)  implementation 
D)  installation

Question 5

Month-end posting to controlling accounts in a computerized accounting system is not required because

Accepted Answer

A)  controlling accounts are not used in computerized systems. 
B)  transactions are posted to accounts immediately. 
C)  the input operator can choose to post to accounts at any time. 
D)  computerized accounting posts entry at the end of the financial year. 
A)  controlling accounts are not used in computerized systems. 
B)  transactions are posted to accounts immediately. 
C)  the input operator can choose to post to accounts at any time. 
D)  computerized accounting posts entry at the end of the financial year.

Question 6

Subsidiary ledgers

Accepted Answer

A)  are used only for Accounts Payable and Accounts Receivable 
B)  may be used for various ledger accounts 
C)  may be used for only for the Cash account 
D)  are never used for more than four accounts 
A)  are used only for Accounts Payable and Accounts Receivable 
B)  may be used for various ledger accounts 
C)  may be used for only for the Cash account 
D)  are never used for more than four accounts

Question 7

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

Accepted Answer

A)  Accounts Payable - Cr., Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Dr. 
B)  Accounts Payable - Dr, Other - Dr, Beverage Supplies - Cr, Food Supplies -Cr, Retain Items Supplies - Cr. 
C)  Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Dr, Cash - Cr. 
D)  Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Cr, Accounts Payable - Dr. 
A)  Accounts Payable - Cr., Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Dr. 
B)  Accounts Payable - Dr, Other - Dr, Beverage Supplies - Cr, Food Supplies -Cr, Retain Items Supplies - Cr. 
C)  Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Dr, Cash - Cr. 
D)  Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Cr, Accounts Payable - Dr.

Question 8

Anderson, Inc. incurred the following transactions during the month of February, 2010. Record the appropriate ones in the Cash payments journal. If a transaction should not be recorded in the Cash payments journal, indicate where it should be posted.

Accepted Answer

@#IMG-DLM&_TB2013_00 Transaction (a) sho

Question 9

Segment data:

Accepted Answer

A)  can be used for vertical, but not horizontal analysis. 
B)  is gathered from invoice data. 
C)  is only useful by product line. 
D)  analysis is required by GAAP. 
A)  can be used for vertical, but not horizontal analysis. 
B)  is gathered from invoice data. 
C)  is only useful by product line. 
D)  analysis is required by GAAP.

Question 10

Which of the following transactions is recorded in the purchases journal?

Accepted Answer

A)  purchase of store supplies on account 
B)  return of damaged office equipment 
C)  purchase of store supplies for cash 
D)  purchase of office equipment for cash 
A)  purchase of store supplies on account 
B)  return of damaged office equipment 
C)  purchase of store supplies for cash 
D)  purchase of office equipment for cash

Question 11

Generally, subsidiary ledgers are used for accounts that consist of a large number of individual items.

Accepted Answer

A) True 
 B)False

Question 12

Transactions must first be recorded into the general journal before they can be entered into specialized journals.

Accepted Answer

A) True 
 B)False

Question 13

When posting the column totals of a cash payments journal, a debit should be posted to

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Sales Discounts 
D)  Unearned Revenue 
A)  Cash 
B)  Accounts Payable 
C)  Sales Discounts 
D)  Unearned Revenue

Question 14

Davidson, Inc. incurred the following transactions during the month of January. Record the appropriate ones in the Cash receipts journal. If a transaction should not be recorded in the Cash receipts journal, indicate where it should be posted.

Accepted Answer

@#IMG-DLM&_TB2013_00 Transaction (a) sho

Question 15

E-commerce provides business opportunities at a higher cost.

Accepted Answer

A) True 
 B)False

Question 16

Mobile Service Corp. has the following debits and credits from two transactions presented in the a customer account:
NAME: Gen-X Products, Inc.
Address: 123 My Way
   Describe each transaction and the source of each posting.

Accepted Answer

The answer of Mobile Service Corp. has the following debits...

Question 17

The primary ledger containing all the balance sheet and income statement accounts is the

Accepted Answer

A)  general ledger 
B)  creditors ledger 
C)  customers ledger 
D)  subsidiary ledger 
A)  general ledger 
B)  creditors ledger 
C)  customers ledger 
D)  subsidiary ledger

Question 18

What is a business segment? How can business segments be analyzed?

Accepted Answer

A business segment is a subset of a busi

Question 19

Accounting systems evolve through a three-step process: analysis, design and feedback.

Accepted Answer

A) True 
 B)False

Question 20

If a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal are used, indicate the journal in which each of the following transactions should be recorded:

Accepted Answer

The answer of If a two-column (all-purpose) general journal, a...

Exam 5: Accounting Systems

Briefly describe the three-step process of accounting system development.

The total of the accounts receivable subsidiary accounts and the account receivable controlling account should balance to each other at the end of the period.

The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings?

The phase of accounting system installation in which the information needs of people in the organization are taken into account is

Month-end posting to controlling accounts in a computerized accounting system is not required because

Subsidiary ledgers

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

Anderson, Inc. incurred the following transactions during the month of February, 2010. Record the appropriate ones in the Cash payments journal. If a transaction should not be recorded in the Cash payments journal, indicate where it should be posted.

Segment data:

Which of the following transactions is recorded in the purchases journal?

Generally, subsidiary ledgers are used for accounts that consist of a large number of individual items.

Transactions must first be recorded into the general journal before they can be entered into specialized journals.

When posting the column totals of a cash payments journal, a debit should be posted to

Davidson, Inc. incurred the following transactions during the month of January. Record the appropriate ones in the Cash receipts journal. If a transaction should not be recorded in the Cash receipts journal, indicate where it should be posted.

E-commerce provides business opportunities at a higher cost.

Mobile Service Corp. has the following debits and credits from two transactions presented in the a customer account: NAME: Gen-X Products, Inc. Address: 123 My Way Describe each transaction and the source of each posting.

The primary ledger containing all the balance sheet and income statement accounts is the

What is a business segment? How can business segments be analyzed?

Accounting systems evolve through a three-step process: analysis, design and feedback.

If a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal are used, indicate the journal in which each of the following transactions should be recorded:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

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