Question 1

The purchase of supplies for cash would be recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 2

Some of the more common subsidiary ledgers are:

Accepted Answer

A)  Accounts Payable, Accounts Receivable, and Owner's Equity subsidiary ledgers. 
B)  Accounts Receivable and Accounts Payable subsidiary ledgers. 
C)  Accounts Receivable, Accounts Payable, Cash, Checking, Petty Cash, and Owner's Equity subsidiary ledgers. 
D)  Cash and Owner's Equity subsidiary ledgers. 
A)  Accounts Payable, Accounts Receivable, and Owner's Equity subsidiary ledgers. 
B)  Accounts Receivable and Accounts Payable subsidiary ledgers. 
C)  Accounts Receivable, Accounts Payable, Cash, Checking, Petty Cash, and Owner's Equity subsidiary ledgers. 
D)  Cash and Owner's Equity subsidiary ledgers.

Question 3

The following is an example of:

Accepted Answer

A)  product analysis 
B)  vertical analysis 
C)  horizontal analysis 
D)  percentage analysis 
A)  product analysis 
B)  vertical analysis 
C)  horizontal analysis 
D)  percentage analysis

Question 4

The format and number of specialized journals that a business uses depends upon the legal organization of the business.

Accepted Answer

A) True 
 B)False

Question 5

Computerized accounting systems

Accepted Answer

A)  is a tedious form of recordkeeping process. 
B)  improve the timeliness of reporting. 
C)  prevent all journalizing errors. 
D)  are only used in medium and large businesses. 
A)  is a tedious form of recordkeeping process. 
B)  improve the timeliness of reporting. 
C)  prevent all journalizing errors. 
D)  are only used in medium and large businesses.

Question 6

The Other Accounts column in the Cash Payments journal is used for recording debits to any account for which there is no specialized debit column.

Accepted Answer

A) True 
 B)False

Question 7

Waller Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice information:   Using horizontal analysis, determine the percentage change in revenues for the North region.
Round to one decimal place.

Accepted Answer

A)  22.4% 
B)  (25.0%) 
C)  25.0% 
D)  (22.4%) 
A)  22.4% 
B)  (25.0%) 
C)  25.0% 
D)  (22.4%)

Question 8

Identify the three main advantages of a computerized accounting system over a manual accounting system.

Accepted Answer

1. Simplification of the recording proce

Question 9

A purchase of supplies for cash is recorded in the

Accepted Answer

A)  Revenue journal 
B)  Purchases journal 
C)  Cash Receipts journal 
D)  Cash Payments journal 
A)  Revenue journal 
B)  Purchases journal 
C)  Cash Receipts journal 
D)  Cash Payments journal

Question 10

Which transaction is normally recorded in a special journal?

Accepted Answer

A)  sales returns 
B)  depreciation expense 
C)  purchases on account 
D)  issued stock dividend 
A)  sales returns 
B)  depreciation expense 
C)  purchases on account 
D)  issued stock dividend

Question 11

The post reference column of the revenue journal will reference the account number of the customer.

Accepted Answer

A) True 
 B)False

Question 12

Each individual entry in the Revenue Journal is posted to

Accepted Answer

A)  the Accounts Receivable controlling account 
B)  the accounts receivable subsidiary ledger 
C)  the Revenue controlling account 
D)  the accounts receivable subsidiary ledger and the controlling account 
A)  the Accounts Receivable controlling account 
B)  the accounts receivable subsidiary ledger 
C)  the Revenue controlling account 
D)  the accounts receivable subsidiary ledger and the controlling account

Question 13

The term B2C refers to transactions conducted between two companies.

Accepted Answer

A) True 
 B)False

Question 14

Processing methods are the means by which the system collects, summarizes, and reports accounting information.

Accepted Answer

A) True 
 B)False

Question 15

In which journal would adjusting entries be found?

Accepted Answer

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

Question 16

If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts 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...

Question 17

At the end of the month, the total of the amount column of the revenue journal is posted as a

Accepted Answer

A)  debit to Accounts Receivable and a credit to Cash 
B)  debit to Accounts Receivable and a credit to Fees Earned 
C)  debit to Cash and a credit to Fees Earned 
D)  debit to Cash and a credit to Accounts Payable 
A)  debit to Accounts Receivable and a credit to Cash 
B)  debit to Accounts Receivable and a credit to Fees Earned 
C)  debit to Cash and a credit to Fees Earned 
D)  debit to Cash and a credit to Accounts Payable

Question 18

Which of the following is not considered a special journal?

Accepted Answer

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

Question 19

Which of the following is recorded in the cash payments journal?

Accepted Answer

A)  adjusting entry for accrued salaries 
B)  receipt of cash on supplies returned 
C)  receipt of cash from services rendered 
D)  payment of employees' salaries 
A)  adjusting entry for accrued salaries 
B)  receipt of cash on supplies returned 
C)  receipt of cash from services rendered 
D)  payment of employees' salaries

Question 20

If a company uses special journals

Accepted Answer

A)  it must have one for cash, receivables, and payables 
B)  it may have no more than four 
C)  the quantity and design depend on the needs of the company 
D)  the design must comply with the FASB requirements 
A)  it must have one for cash, receivables, and payables 
B)  it may have no more than four 
C)  the quantity and design depend on the needs of the company 
D)  the design must comply with the FASB requirements

Exam 5: Accounting Systems

The purchase of supplies for cash would be recorded in the purchases journal.

Some of the more common subsidiary ledgers are:

The following is an example of:

The format and number of specialized journals that a business uses depends upon the legal organization of the business.

Computerized accounting systems

The Other Accounts column in the Cash Payments journal is used for recording debits to any account for which there is no specialized debit column.

Waller Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice information: Using horizontal analysis, determine the percentage change in revenues for the North region. Round to one decimal place.

Identify the three main advantages of a computerized accounting system over a manual accounting system.

A purchase of supplies for cash is recorded in the

Which transaction is normally recorded in a special journal?

The post reference column of the revenue journal will reference the account number of the customer.

Each individual entry in the Revenue Journal is posted to

The term B2C refers to transactions conducted between two companies.

Processing methods are the means by which the system collects, summarizes, and reports accounting information.

In which journal would adjusting entries be found?

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

At the end of the month, the total of the amount column of the revenue journal is posted as a

Which of the following is not considered a special journal?

Which of the following is recorded in the cash payments journal?

If a company uses special journals

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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