Exam 11: Accounting Information Systems

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.

Accounting information system components include

If the total balance of the Accounts Receivable Ledger equals the total of the controlling Accounts Receivable account, then the individual accounts are presumed to be correct.

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

A bookkeeper using a Purchases Journal recorded new store supplies purchased on account. The subledger that would be impacted as a result of this transaction is the

Explain the goals and uses of special journals.

A subsidiary ledger

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.

A subsidiary ledger is a listing of individual accounts with a common characteristic.

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

Under the perpetual system, special journals are not required.

Sky Waller 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 July: 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.

Explain what is meant by footing and cross footing.

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

A Sales Journal is used to record sales of merchandise on credit.

The Sales Journal is used for

Describe the posting process for special journals.

Source documents

The Accounts Payable account in the General Ledger is

Define controlling accounts. In what ledger do they appear?