Question 1

Two common subsidiary ledgers are cash receipts and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 2

Under the perpetual inventory system, special journals are not required.

Accepted Answer

A) True 
 B)False

Question 3

The Accounts Payable account in the general ledger is:

Accepted Answer

A)  A controlling account for the subsidiary accounts payable ledger. 
B)  The account that controls the purchases journal. 
C)  The subsidiary account to the purchases journal. 
D)  Part of a special journal. 
E)  Part of a subsidiary ledger. 
A)  A controlling account for the subsidiary accounts payable ledger. 
B)  The account that controls the purchases journal. 
C)  The subsidiary account to the purchases journal. 
D)  Part of a special journal. 
E)  Part of a subsidiary ledger.

Question 4

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances, and (3) recording purchases discounts.

Accepted Answer

A) True 
 B)False

Question 5

A customer who had purchased $25,000 worth of merchandise on account returns 20% of this order to the seller because he is not satisfied with the quality of the goods. How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

Accepted Answer

A)  $\begin{array}{|c|r|r|}
\hline \text { Sales } & 5,000 & \
\hline \text { Accounts Receivable } & & 5,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|c|r|r|}
\hline \text { Accounts Receivable } & 5,000 & \
\hline \text { Sales } & & 5,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|c|r|r|}
\hline \text { Sales Returns and Allowances } & 5,000 & \
\hline \text { Accounts Receivable } & & 5,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|c|r|r|}
\hline \text { Accounts Receivable } & 5,000 & \
\hline \text { Sales Returns and Allowances } & & 5,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|c|r|r|}
\hline \text { Sales } & 25,000 & \
\hline \text { Accounts Receivable } & & 25,000 \
\hline
\end{array}$ 
A)  $\begin{array}{|c|r|r|}
\hline \text { Sales } & 5,000 & \
\hline \text { Accounts Receivable } & & 5,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|c|r|r|}
\hline \text { Accounts Receivable } & 5,000 & \
\hline \text { Sales } & & 5,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|c|r|r|}
\hline \text { Sales Returns and Allowances } & 5,000 & \
\hline \text { Accounts Receivable } & & 5,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|c|r|r|}
\hline \text { Accounts Receivable } & 5,000 & \
\hline \text { Sales Returns and Allowances } & & 5,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|c|r|r|}
\hline \text { Sales } & 25,000 & \
\hline \text { Accounts Receivable } & & 25,000 \
\hline
\end{array}$

Question 6

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the perpetual method. The following transactions occurred during the current month of December:
   Record the above transactions into the appropriate journals shown below:

Accepted Answer

The answer of The Woodview Company uses a sales journal,...

Question 7

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 8

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Match between columns
                        Premises: Computer hard drive
Electronic files
Journals
Journal entries
Financial statements
Invoice from suppliers
Computer keyboard
Computer monitor
Employee paychecks
Software

Accepted Answer

The Answer of Input devices and Information storage and Information is...

Question 11

Discuss how technology-based information systems affect accounting.

Accepted Answer

Technology-based information systems hav

Question 12

Accounting information systems are designed to capture information about a company's transactions and events and to provide output including financial, managerial, and tax reports.

Accepted Answer

A) True 
 B)False

Question 13

A business segment is a part of a company that is separately identified by its products or services or by the geographic market it serves.

Accepted Answer

A) True 
 B)False

Question 14

A company's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average total assets of $1,443 million. 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 15

Identify the accounting information system principle below that applies to each of these situations:

Accepted Answer

(1) E; (2)

Question 16

When posting from special journals, each debit and credit entry is entered as a separate amount.

Accepted Answer

A) True 
 B)False

Question 17

When the sales journal's column for accounts receivable and sales is totaled at the end of the month, its total is:

Accepted Answer

A)  Debited to Sales and credited to Accounts Receivable. 
B)  Debited to Accounts Receivable and credited to Cash. 
C)  Debited to Cash and credited to Accounts Receivable. 
D)  Debited to Accounts Receivable and credited to Sales. 
E)  Debited to Cash and credited to Sales. 
A)  Debited to Sales and credited to Accounts Receivable. 
B)  Debited to Accounts Receivable and credited to Cash. 
C)  Debited to Cash and credited to Accounts Receivable. 
D)  Debited to Accounts Receivable and credited to Sales. 
E)  Debited to Cash and credited to Sales.

Question 18

The basic components of an accounting information system include all but which of the following?

Accepted Answer

A)  Source documents 
B)  Input devices 
C)  Cell phones 
D)  Information processors 
E)  Information storage 
A)  Source documents 
B)  Input devices 
C)  Cell phones 
D)  Information processors 
E)  Information storage

Question 19

Match between columns
                        Premises:  Computer hard drive
 Computer monitor
 Employee paychecks
 Electronic files
 Computer keyboard
 Journal entries
 Software
 Financial statements
 Journals
 Invoice from suppliers

Accepted Answer

The Answer of Input devices and Information storage and Information is...

Question 20

The following special journal is taken from a merchandising company that uses the perpetual inventory system:
   a. What is the name of the journal shown above?
b. Write an explanation for each entry in this journal.
c. What do the numbers in parentheses at the bottom of the journal indicate?

Accepted Answer

a. This is a cash receipts journal (perp

Two common subsidiary ledgers are cash receipts and cash disbursements.

Under the perpetual inventory system, special journals are not required.

The Accounts Payable account in the general ledger is:

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances, and (3) recording purchases discounts.

A customer who had purchased $25,000 worth of merchandise on account returns 20% of this order to the seller because he is not satisfied with the quality of the goods. How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

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

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

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

Discuss how technology-based information systems affect accounting.

Accounting information systems are designed to capture information about a company's transactions and events and to provide output including financial, managerial, and tax reports.

A business segment is a part of a company that is separately identified by its products or services or by the geographic market it serves.

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

Identify the accounting information system principle below that applies to each of these situations:

When posting from special journals, each debit and credit entry is entered as a separate amount.

When the sales journal's column for accounts receivable and sales is totaled at the end of the month, its total is:

The basic components of an accounting information system include all but which of the following?

The following special journal is taken from a merchandising company that uses the perpetual inventory system: a. What is the name of the journal shown above? b. Write an explanation for each entry in this journal. c. What do the numbers in parentheses at the bottom of the journal indicate?

Introducing Financial Accounting

Accounting for Transactions

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

Exam 17: Accounting With Special Journals

Two common subsidiary ledgers are cash receipts and cash disbursements.

Under the perpetual inventory system, special journals are not required.

The Accounts Payable account in the general ledger is:

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances, and (3) recording purchases discounts.

A customer who had purchased $25,000 worth of merchandise on account returns 20% of this order to the seller because he is not satisfied with the quality of the goods. How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

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

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

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

Discuss how technology-based information systems affect accounting.

Accounting information systems are designed to capture information about a company's transactions and events and to provide output including financial, managerial, and tax reports.

A business segment is a part of a company that is separately identified by its products or services or by the geographic market it serves.

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

Identify the accounting information system principle below that applies to each of these situations:

When posting from special journals, each debit and credit entry is entered as a separate amount.

When the sales journal's column for accounts receivable and sales is totaled at the end of the month, its total is:

The basic components of an accounting information system include all but which of the following?

The following special journal is taken from a merchandising company that uses the perpetual inventory system: a. What is the name of the journal shown above? b. Write an explanation for each entry in this journal. c. What do the numbers in parentheses at the bottom of the journal indicate?

Introducing Financial Accounting

Accounting for Transactions

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters