Question 1

The ledger that contains the financial statement accounts of a business is the:

Accepted Answer

A)  General Ledger. 
B)  General Journal. 
C)  Special Ledger. 
D)  Special Journal. 
E)  Column balance ledger. 
A)  General Ledger. 
B)  General Journal. 
C)  Special Ledger. 
D)  Special Journal. 
E)  Column balance ledger.

Question 2

Two common subsidiary ledgers are cash receipts and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 3

A special journal is any journal used for recording and posting transactions of a similar type.

Accepted Answer

A) True 
 B)False

Question 4

Explain the goals and uses of special journals.

Accepted Answer

Special journals are used for recording

Question 5

A management information system (MIS)is designed to collect and process data within an organization for the purpose of providing users with information.

Accepted Answer

A) True 
 B)False

Question 6

One difference in the Sales Journal between the perpetual and periodic systems is:

Accepted Answer

A)  The column to record cost of goods sold and inventory amounts sold. 
B)  The addition of a sales tax payable column. 
C)  The deletion of a sales tax payable column. 
D)  The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column. 
E)  The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column. 
A)  The column to record cost of goods sold and inventory amounts sold. 
B)  The addition of a sales tax payable column. 
C)  The deletion of a sales tax payable column. 
D)  The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column. 
E)  The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column.

Question 7

To check for accuracy after posting: first a trial balance is completed,then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Question 8

Princess Company uses a Sales Journal,a Purchases Journal,a Cash Receipts Journal,a Cash Disbursements Journal,a General Journal and a perpetual inventory system.
The following transactions were completed by Princess Company during the month of October:   Required:
(a)Record the appropriate transactions in the General Journal.
(b)For the transactions not recorded in the General Journal,indicate the correct special journal that would be used.

Accepted Answer

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

Question 9

The difference in the Sales Journal between the perpetual and periodic systems is the column to record ___________________ and ________________ for each sale.

Accepted Answer

Cost of go

Question 10

Explain the use of controlling accounts and subsidiary ledgers.

Accepted Answer

The controlling accounts are part of the

Question 11

An Accounts Receivable ledger is:

Accepted Answer

A)  A subsidiary ledger that contains an account for each credit customer. 
B)  A list of the balances of all the accounts in the Accounts Receivable ledger that is added to show the total amount of accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specified type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each party that grants credit on account to the entity. 
A)  A subsidiary ledger that contains an account for each credit customer. 
B)  A list of the balances of all the accounts in the Accounts Receivable ledger that is added to show the total amount of accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specified type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each party that grants credit on account to the entity.

Question 12

Account balances in the General Ledger and the subsidiary ledgers are tested for accuracy after posting is complete.

Accepted Answer

A) True 
 B)False

Question 13

When a business has more than one credit customer,a separate account receivable for each customer must be designed to show all of the following except:

Accepted Answer

A)  How much each customer has paid. 
B)  How much each customer has purchased. 
C)  How much sales tax each customer has paid. 
D)  How much remains to be collected from each customer. 
E)  All of these should be included. 
A)  How much each customer has paid. 
B)  How much each customer has purchased. 
C)  How much sales tax each customer has paid. 
D)  How much remains to be collected from each customer. 
E)  All of these should be included.

Question 14

When posting from special journals all debit and credit entries are entered as separate amounts.

Accepted Answer

A) True 
 B)False

Question 15

Dunst Adventure Co.uses special journals to record its transactions and a perpetual inventory system.Shown below are the purchase and cash disbursement transactions for May:   Record the above transactions in the following journals.

Accepted Answer

The answer of Dunst Adventure Co.uses special journals to record...

Question 16

After posting is completed,there may be an error if:

Accepted Answer

A)  The sum of the customer account balances does not equal the total in the sales journal. 
B)  The sum of the accounts receivable ledger does not equal the balance in the sales account. 
C)  The sum of the customer account balances does not equal the accounts receivable controlling account balance. 
D)  The balance in the sales journal does not equal the accounts receivable controlling account balance. 
E)  The sum of the accounts receivable ledger does not equal the balance in the sales journal. 
A)  The sum of the customer account balances does not equal the total in the sales journal. 
B)  The sum of the accounts receivable ledger does not equal the balance in the sales account. 
C)  The sum of the customer account balances does not equal the accounts receivable controlling account balance. 
D)  The balance in the sales journal does not equal the accounts receivable controlling account balance. 
E)  The sum of the accounts receivable ledger does not equal the balance in the sales journal.

Question 17

Enterprise-application software packages keep the programs that manage a company's vital operations.

Accepted Answer

A) True 
 B)False

Question 18

Accounting information system components include:

Accepted Answer

A)  People. 
B)  Input data. 
C)  Software. 
D)  Hardware. 
E)  All of these answers are correct. 
A)  People. 
B)  Input data. 
C)  Software. 
D)  Hardware. 
E)  All of these answers are correct.

Question 19

Special journals include:

Accepted Answer

A)  Sales journal. 
B)  Cash receipts journal. 
C)  Purchases journal. 
D)  Cash disbursements journal. 
E)  All of these answers are correct. 
A)  Sales journal. 
B)  Cash receipts journal. 
C)  Purchases journal. 
D)  Cash disbursements journal. 
E)  All of these answers are correct.

Question 20

Explain what is meant by footing and cross footing.

Accepted Answer

Footing is adding a column of

The ledger that contains the financial statement accounts of a business is the:

Two common subsidiary ledgers are cash receipts and cash disbursements.

A special journal is any journal used for recording and posting transactions of a similar type.

Explain the goals and uses of special journals.

A management information system (MIS)is designed to collect and process data within an organization for the purpose of providing users with information.

One difference in the Sales Journal between the perpetual and periodic systems is:

To check for accuracy after posting: first a trial balance is completed,then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

The difference in the Sales Journal between the perpetual and periodic systems is the column to record ___ and for each sale.

Explain the use of controlling accounts and subsidiary ledgers.

An Accounts Receivable ledger is:

Account balances in the General Ledger and the subsidiary ledgers are tested for accuracy after posting is complete.

When a business has more than one credit customer,a separate account receivable for each customer must be designed to show all of the following except:

When posting from special journals all debit and credit entries are entered as separate amounts.

Dunst Adventure Co.uses special journals to record its transactions and a perpetual inventory system.Shown below are the purchase and cash disbursement transactions for May: Record the above transactions in the following journals.

After posting is completed,there may be an error if:

Enterprise-application software packages keep the programs that manage a company's vital operations.

Accounting information system components include:

Special journals include:

Explain what is meant by footing and cross footing.

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 ledger that contains the financial statement accounts of a business is the:

Two common subsidiary ledgers are cash receipts and cash disbursements.

A special journal is any journal used for recording and posting transactions of a similar type.

Explain the goals and uses of special journals.

A management information system (MIS)is designed to collect and process data within an organization for the purpose of providing users with information.

One difference in the Sales Journal between the perpetual and periodic systems is:

To check for accuracy after posting: first a trial balance is completed,then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

The difference in the Sales Journal between the perpetual and periodic systems is the column to record ___________________ and ________________ for each sale.

Explain the use of controlling accounts and subsidiary ledgers.

An Accounts Receivable ledger is:

Account balances in the General Ledger and the subsidiary ledgers are tested for accuracy after posting is complete.

When a business has more than one credit customer,a separate account receivable for each customer must be designed to show all of the following except:

When posting from special journals all debit and credit entries are entered as separate amounts.

Dunst Adventure Co.uses special journals to record its transactions and a perpetual inventory system.Shown below are the purchase and cash disbursement transactions for May: Record the above transactions in the following journals.

After posting is completed,there may be an error if:

Enterprise-application software packages keep the programs that manage a company's vital operations.

Accounting information system components include:

Special journals include:

Explain what is meant by footing and cross footing.

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

The difference in the Sales Journal between the perpetual and periodic systems is the column to record ___ and for each sale.