Question 1

The Purchases Journal is the same in both the periodic and perpetual systems.

Accepted Answer

A) True 
 B)False

Question 2

Three issues involving the Sales Journal include: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchase discounts.

Accepted Answer

A) True 
 B)False

Question 3

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.In the same manner GST receivable and PST receivable columns may be added to the Purchases Journal and the Cash Disbursements Journal.

Accepted Answer

A) True 
 B)False

Question 4

When a Cash Disbursements Journal has a column for cheque numbers,it is sometimes called a(n)_____________.

Accepted Answer

The answer of When a Cash Disbursements Journal has a...

Question 5

An example of a specialty component of an AIS is:

Accepted Answer

A)  Subsidiary ledger. 
B)  Sales Journal. 
C)  Property,plant and equipment. 
D)  Cheque Register. 
E)  Voucher. 
A)  Subsidiary ledger. 
B)  Sales Journal. 
C)  Property,plant and equipment. 
D)  Cheque Register. 
E)  Voucher.

Question 6

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 7

The basic components of an accounting system include:

Accepted Answer

A)  Source documents. 
B)  Input devices. 
C)  Information processors. 
D)  Information storage. 
E)  All of these answers are correct. 
A)  Source documents. 
B)  Input devices. 
C)  Information processors. 
D)  Information storage. 
E)  All of these answers are correct.

Question 8

Most transactions for merchandising businesses fall into four groups: sales on credit,purchases on credit,cash receipts,and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 9

A subsidiary ledger that contains a separate account for each party that grants credit on account to the business is called a(n):

Accepted Answer

A)  Controlling account. 
B)  Accounts Receivable Ledger. 
C)  Accounts Payable Ledger. 
D)  Merchandise Inventory Ledger. 
E)  Accounts Payable. 
A)  Controlling account. 
B)  Accounts Receivable Ledger. 
C)  Accounts Payable Ledger. 
D)  Merchandise Inventory Ledger. 
E)  Accounts Payable.

Question 10

The General Journal is flexible and can be used for original,adjusting,closing,and correcting entries.

Accepted Answer

A) True 
 B)False

Question 11

Under the perpetual system cash sales are recorded at the point of sale.

Accepted Answer

A) True 
 B)False

Question 12

Explain how the balances in the subsidiary accounts are tested for accuracy.

Accepted Answer

The two-step procedure begins after the

Question 13

A subsidiary ledger:

Accepted Answer

A)  Includes transactions not covered by special journals. 
B)  Is a listing of all of the accounts of a business. 
C)  Is a listing of individual accounts with a common characteristic. 
D)  Is a listing of all accounts with balances. 
E)  Is a listing of all special journals. 
A)  Includes transactions not covered by special journals. 
B)  Is a listing of all of the accounts of a business. 
C)  Is a listing of individual accounts with a common characteristic. 
D)  Is a listing of all accounts with balances. 
E)  Is a listing of all special journals.

Question 14

The MIS is a subsystem of the accounting information system.

Accepted Answer

A) True 
 B)False

Question 15

The Forty-Niner Company uses a periodic system and records its transactions and other events in four special journals and a general journal.The money columns of these journals are numbered as follows:   Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s)of the columns in which the debit(s)would appear in the column labeled "Debits" below and by inserting the number(s)of the columns in which the credits would appear in the column labeled "Credits" below.

Accepted Answer

The answer of The Forty-Niner Company uses a periodic system...

Question 16

A company uses a Sales Journal,a Purchases Journal,a Cash Receipts Journal,a Cash Disbursements Journal,and a General Journal.A sales return for credit on account would be recorded in the:

Accepted Answer

A)  Sales Journal. 
B)  General Journal. 
C)  Cash Receipts Journal. 
D)  Accounts Receivable Ledger. 
E)  Cash Disbursements Journal. 
A)  Sales Journal. 
B)  General Journal. 
C)  Cash Receipts Journal. 
D)  Accounts Receivable Ledger. 
E)  Cash Disbursements Journal.

Question 17

The Accounts Payable ledger is used for storing transaction data regarding individual customers.

Accepted Answer

A) True 
 B)False

Question 18

Each transaction recorded in the Sales Journal includes a debit to Accounts Receivable and a credit to Sales Revenue.

Accepted Answer

A) True 
 B)False

Question 19

Dina Company uses a Sales Journal,a Purchases Journal,a Cash Receipts Journal,a Cash Disbursements Journal,and a General Journal,and a perpetual inventory system.The following transactions occurred during the month of December:  
-Prepare a Cash Disbursements Journal for Dina Company and journalize the appropriate transactions.

Accepted Answer

The answer of Dina Company uses a Sales Journal,a Purchases...

Question 20

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.

Accepted Answer

A) True 
 B)False

The Purchases Journal is the same in both the periodic and perpetual systems.

Three issues involving the Sales Journal include: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchase discounts.

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.In the same manner GST receivable and PST receivable columns may be added to the Purchases Journal and the Cash Disbursements Journal.

When a Cash Disbursements Journal has a column for cheque numbers,it is sometimes called a(n)_____________.

An example of a specialty component of an AIS is:

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

The basic components of an accounting system include:

Most transactions for merchandising businesses fall into four groups: sales on credit,purchases on credit,cash receipts,and cash disbursements.

A subsidiary ledger that contains a separate account for each party that grants credit on account to the business is called a(n):

The General Journal is flexible and can be used for original,adjusting,closing,and correcting entries.

Under the perpetual system cash sales are recorded at the point of sale.

Explain how the balances in the subsidiary accounts are tested for accuracy.

A subsidiary ledger:

The MIS is a subsystem of the accounting information system.

A company uses a Sales Journal,a Purchases Journal,a Cash Receipts Journal,a Cash Disbursements Journal,and a General Journal.A sales return for credit on account would be recorded in the:

The Accounts Payable ledger is used for storing transaction data regarding individual customers.

Each transaction recorded in the Sales Journal includes a debit to Accounts Receivable and a credit to Sales Revenue.

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Internal Control and Cash

Receivables

Filters

Exam 7: Accounting Information Systems

The Purchases Journal is the same in both the periodic and perpetual systems.

Three issues involving the Sales Journal include: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchase discounts.

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.In the same manner GST receivable and PST receivable columns may be added to the Purchases Journal and the Cash Disbursements Journal.

When a Cash Disbursements Journal has a column for cheque numbers,it is sometimes called a(n)_____________.

An example of a specialty component of an AIS is:

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

The basic components of an accounting system include:

Most transactions for merchandising businesses fall into four groups: sales on credit,purchases on credit,cash receipts,and cash disbursements.

A subsidiary ledger that contains a separate account for each party that grants credit on account to the business is called a(n):

The General Journal is flexible and can be used for original,adjusting,closing,and correcting entries.

Under the perpetual system cash sales are recorded at the point of sale.

Explain how the balances in the subsidiary accounts are tested for accuracy.

A subsidiary ledger:

The MIS is a subsystem of the accounting information system.

A company uses a Sales Journal,a Purchases Journal,a Cash Receipts Journal,a Cash Disbursements Journal,and a General Journal.A sales return for credit on account would be recorded in the:

The Accounts Payable ledger is used for storing transaction data regarding individual customers.

Each transaction recorded in the Sales Journal includes a debit to Accounts Receivable and a credit to Sales Revenue.

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Internal Control and Cash

Receivables

Filters