Question 1

A sales journal is used for recording cash sales.

Accepted Answer

A) True 
 B)False

Question 2

Explain the use of controlling accounts and subsidiary ledgers.

Accepted Answer

The controlling accounts are part of the

Question 3

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 4

The Purchases Journal is used for

Accepted Answer

A)  Recording credit purchases 
B)  Recording credit sales 
C)  Recording cash sales 
D)  Recording cash purchases 
E)  Recording both credit purchases and credit sales 
A)  Recording credit purchases 
B)  Recording credit sales 
C)  Recording cash sales 
D)  Recording cash purchases 
E)  Recording both credit purchases and credit sales

Question 5

An Accounts Payable subledger is

Accepted Answer

A)  A subsidiary ledger that contains an account for each supplier that grants credit to the company 
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 customer that grants credit to the company 
A)  A subsidiary ledger that contains an account for each supplier that grants credit to the company 
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 customer that grants credit to the company

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

An MIS is designed to

Accepted Answer

A)  Ensure reliable financial reports 
B)  Safeguard company assets 
C)  Ensure full disclosure 
D)  Both ensure reliable financial reports and safeguard company assets 
E)  Collect and process data 
A)  Ensure reliable financial reports 
B)  Safeguard company assets 
C)  Ensure full disclosure 
D)  Both ensure reliable financial reports and safeguard company assets 
E)  Collect and process data

Question 8

The general rule for posting is that the controlling account is debited periodically for an amount equal to the sum of the debits to the subsidiary ledger, and is credited periodically for an amount equal to the sum of the credits to the subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 9

Accounting information systems

Accepted Answer

A)  Collect and process data from events and transactions 
B)  Organize data in useful forms 
C)  Communicate information to decision makers 
D)  Both collect and process data from events and transactions and organize data in useful forms 
E)  All of these 
A)  Collect and process data from events and transactions 
B)  Organize data in useful forms 
C)  Communicate information to decision makers 
D)  Both collect and process data from events and transactions and organize data in useful forms 
E)  All of these

Question 10

The Accounts Receivable ledger is

Accepted Answer

A)  Used for recording credit sales 
B)  Used for storing transaction data for individual customers 
C)  Used for storing transaction data for individual creditors 
D)  Used for recording cash receipts from customers 
E)  Also the controlling account 
A)  Used for recording credit sales 
B)  Used for storing transaction data for individual customers 
C)  Used for storing transaction data for individual creditors 
D)  Used for recording cash receipts from customers 
E)  Also the controlling account

Question 11

The general rule for posting to a subsidiary ledger and its controlling account is

Accepted Answer

A)  The controlling account is debited periodically for an amount or amounts equal to the sum of the debits to the subsidiary ledger 
B)  The controlling account is credited periodically for an amount or amounts equal to the sum of the credits to the subsidiary ledger 
C)  A trial balance ledger 
D)  The controlling account is both debited and credited periodically for an amount or amounts equal to the sum of the debits or credits to the subsidiary ledger 
E)  All of these 
A)  The controlling account is debited periodically for an amount or amounts equal to the sum of the debits to the subsidiary ledger 
B)  The controlling account is credited periodically for an amount or amounts equal to the sum of the credits to the subsidiary ledger 
C)  A trial balance ledger 
D)  The controlling account is both debited and credited periodically for an amount or amounts equal to the sum of the debits or credits to the subsidiary ledger 
E)  All of these

Question 12

The MIS is a subsystem of the accounting information system.

Accepted Answer

A) True 
 B)False

Question 13

Items posted from the General Journal carry the initial P.

Accepted Answer

A) True 
 B)False

Question 14

Equipment, inventory, and investments may also need subsidiary ledgers.

Accepted Answer

A) True 
 B)False

Question 15

Most of the transactions of a merchandising company fall into four groups, including all of the following except

Accepted Answer

A)  Sales on credit 
B)  Sales returns and allowances 
C)  Purchases on credit 
D)  Cash receipts 
E)  Cash disbursements 
A)  Sales on credit 
B)  Sales returns and allowances 
C)  Purchases on credit 
D)  Cash receipts 
E)  Cash disbursements

Question 16

Computer hardware is the programs that direct the operations of computer hardware.

Accepted Answer

A) True 
 B)False

Question 17

The three primary components of accounting information systems are

Accepted Answer

A)  Relevance, compatibility, and flexibility 
B)  Compatibility, flexibility, and cost-benefit 
C)  Compatibility, flexibility, and safety 
D)  Compatibility, timeliness, and cost-benefit 
E)  Accounts payable, accounts receivable, and payroll 
A)  Relevance, compatibility, and flexibility 
B)  Compatibility, flexibility, and cost-benefit 
C)  Compatibility, flexibility, and safety 
D)  Compatibility, timeliness, and cost-benefit 
E)  Accounts payable, accounts receivable, and payroll

Question 18

In a perpetual inventory system

Accepted Answer

A)  The sales journal tracks sales discounts taken 
B)  The cash receipts journal tracks sales returns and allowances taken 
C)  The cash disbursements journal tracks purchase discounts taken 
D)  The purchase journal tracks merchandise inventory bought 
E)  The sales journal tracks increase in inventory 
A)  The sales journal tracks sales discounts taken 
B)  The cash receipts journal tracks sales returns and allowances taken 
C)  The cash disbursements journal tracks purchase discounts taken 
D)  The purchase journal tracks merchandise inventory bought 
E)  The sales journal tracks increase in inventory

Question 19

In a periodic inventory system

Accepted Answer

A)  The sales journal tracks merchandise inventory bought 
B)  The sales journal tracks decreases in inventory 
C)  The cash disbursements journal tracks purchase discounts 
D)  The cash receipt journal tracks cost of goods sold 
E)  The cash receipts journal tracks sales returns and allowances taken 
A)  The sales journal tracks merchandise inventory bought 
B)  The sales journal tracks decreases in inventory 
C)  The cash disbursements journal tracks purchase discounts 
D)  The cash receipt journal tracks cost of goods sold 
E)  The cash receipts journal tracks sales returns and allowances taken

Question 20

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

A sales journal is used for recording cash sales.

Explain the use of controlling accounts and subsidiary ledgers.

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

The Purchases Journal is used for

An Accounts Payable subledger is

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

An MIS is designed to

The general rule for posting is that the controlling account is debited periodically for an amount equal to the sum of the debits to the subsidiary ledger, and is credited periodically for an amount equal to the sum of the credits to the subsidiary ledger.

Accounting information systems

The Accounts Receivable ledger is

The general rule for posting to a subsidiary ledger and its controlling account is

The MIS is a subsystem of the accounting information system.

Items posted from the General Journal carry the initial P.

Equipment, inventory, and investments may also need subsidiary ledgers.

Most of the transactions of a merchandising company fall into four groups, including all of the following except

Computer hardware is the programs that direct the operations of computer hardware.

The three primary components of accounting information systems are

In a perpetual inventory system

In a periodic inventory system

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

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Filters

Exam 11: Accounting Information Systems

A sales journal is used for recording cash sales.

Explain the use of controlling accounts and subsidiary ledgers.

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

The Purchases Journal is used for

An Accounts Payable subledger is

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

An MIS is designed to

The general rule for posting is that the controlling account is debited periodically for an amount equal to the sum of the debits to the subsidiary ledger, and is credited periodically for an amount equal to the sum of the credits to the subsidiary ledger.

Accounting information systems

The Accounts Receivable ledger is

The general rule for posting to a subsidiary ledger and its controlling account is

The MIS is a subsystem of the accounting information system.

Items posted from the General Journal carry the initial P.

Equipment, inventory, and investments may also need subsidiary ledgers.

Most of the transactions of a merchandising company fall into four groups, including all of the following except

Computer hardware is the programs that direct the operations of computer hardware.

The three primary components of accounting information systems are

In a perpetual inventory system

In a periodic inventory system

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

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Filters