Exam 5: Accounting Systems

Which of the following accounts normally has a subsidiary ledger?

The customers ledger and the creditors ledger refer to subsidiary ledgers.

Define and describe an accounting system.

Describe and discuss e-commerce.

Which of the following is not one of the three phases needed when changing an accounting system, either in its entirety or in part?

Sales of office supplies for cash, at cost, to a neighboring business as an accommodation, are recorded in the revenue journal.

The presence of a subsidiary ledger requires the presence of a summarizing controlling account.

The controlling account in the general ledger that summarizes the debits and credits to the individual customers accounts in the subsidiary ledger is entitled

In computerized accounting systems, reports may be generated at any time.

In which journal would an adjustment for an overcharge by a creditor be recorded?

A cash refund paid to a customer who overpaid an account receivable is recorded in the cash payments journal.

Adjusting journal entries are recorded in a special journal.

An "Accounts Receivable Subsidiary Ledger" report shows

Purchase journals will have an Other Accounts Cr. column.

In which journal is the return of supplies purchased on account recorded?

A cash investment made by the owner should be recorded on the

The Internet creates opportunities for improving the speed and efficiency of transactions. Name and describe three key areas besides e-commerce where the Internet is being used for business purposes.

After an accounting system has been set up, what is the next step?

In which journal is the receipt of a promissory note from a customer on account recorded?

A controlling account is used to record the details of the individual accounts.