Question 1

Describe the posting process for special journals.

Accepted Answer

Posting to special journals is a three-s

Question 2

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 and amounts with a common characteristic. 
D)  Is also called a general ledger. 
E)  Is also called a special journal. 
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 and amounts with a common characteristic. 
D)  Is also called a general ledger. 
E)  Is also called a special journal.

Question 3

Enterprise resource planning software is primarily used for recording journal entries.

Accepted Answer

A) True 
 B)False

Question 4

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

Accepted Answer

The controlling accounts are part of the

Question 5

A _______________________________________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

Accepted Answer

Schedule o

Question 6

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale. This column is used in the perpetual system but not in the periodic.
________________________________________

Accepted Answer

Chapter 07 Accountin

Question 7

Due to electronic files and Web communications, source documents are no longer required.

Accepted Answer

A) True 
 B)False

Question 8

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

Accepted Answer

The answer of Outdoors Unlimited uses special journals to record...

Question 9

____________________ are the means to take information out of an accounting system and make it available to users.

Accepted Answer

The answer of ____________________ are the means to take information...

Question 10

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of Argon Sales uses special journals to record...

Question 11

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

Accepted Answer

A)  49.4% 
B)  69.0% 
C)  71.6% 
D)  139.7% 
E)  144.8% 
A)  49.4% 
B)  69.0% 
C)  71.6% 
D)  139.7% 
E)  144.8%

Question 12

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May:   Record these transactions in the following journals.

Accepted Answer

The answer of Renton Co. uses special journals to record...

Question 13

Information storage:

Accepted Answer

A)  Eliminates the need for professional judgment. 
B)  Keeps data in a form accessible to information processors. 
C)  Provides the basic information processed by an accounting system. 
D)  Captures information from source documents. 
E)  Cannot be online. 
A)  Eliminates the need for professional judgment. 
B)  Keeps data in a form accessible to information processors. 
C)  Provides the basic information processed by an accounting system. 
D)  Captures information from source documents. 
E)  Cannot be online.

Question 14

Accounting information processes are structured to eliminate the need for professional judgment.

Accepted Answer

A) True 
 B)False

Question 15

Williams Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.   a. Use the purchases journal and the cash disbursements journal to record these transactions.
b. Prepare a schedule of accounts payable. There was no accounts payable balance on May 1.

Accepted Answer

The answer of Williams Company began business on May 1....

Question 16

A company purchased $11,200 of merchandise on credit. Identify the journal the transaction would be recorded in.

Accepted Answer

A)  Cash disbursements journal. 
B)  Sales journal. 
C)  Cash receipts journal. 
D)  Purchases journal. 
E)  General journal. 
A)  Cash disbursements journal. 
B)  Sales journal. 
C)  Cash receipts journal. 
D)  Purchases journal. 
E)  General journal.

Question 17

The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

Accepted Answer

Segment re

Question 18

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 19

The purchases journal is identical under both the periodic and the perpetual inventory systems.

Accepted Answer

A) True 
 B)False

Question 20

The __________________ principle requires that an accounting information system report useful, understandable, timely, and pertinent information for effective decision making.

Accepted Answer

The answer of The __________________ principle requires that an accounting...

Exam 7: Accounting Information Systems

Describe the posting process for special journals.

A subsidiary ledger:

Enterprise resource planning software is primarily used for recording journal entries.

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

A _______________________________________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale. This column is used in the perpetual system but not in the periodic. ________________________________________

Due to electronic files and Web communications, source documents are no longer required.

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

____________________ are the means to take information out of an accounting system and make it available to users.

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals.

Information storage:

Accounting information processes are structured to eliminate the need for professional judgment.

A company purchased $11,200 of merchandise on credit. Identify the journal the transaction would be recorded in.

The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

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 purchases journal is identical under both the periodic and the perpetual inventory systems.

The __________________ principle requires that an accounting information system report useful, understandable, timely, and pertinent information for effective decision making.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

Filters

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _ and for each sale. This column is used in the perpetual system but not in the periodic. ________________