Argyle Company uses a cash receipts journal (periodic system) as shown below: $\begin{array}{|c|c|l|l|l|c|l|c|} \hline \text { Date } & \begin{array}{c} \text { Account } \\ \text { Credited } \end{array} & \text { Explanation } & \text { Cash Dr. } & \begin{array}{c} \text { Sales } \\ \text { Disc. Dr. } \end{array} & \begin{array}{c} \text { Accounts } \\ \text { Receivable } \\ \text { Cr. } \end{array} & \text { Sales Cr. } & \begin{array}{c} \text { Other } \\ \text { Accounts } \\ \text { Cr. } \end{array} \\ \hline & & & & & & & \\ \hline \end{array}$ How would the following transactions be recorded in this cash receipt journal? -12/10 Sold merchandise to Sock Company for $9,260 cash (cost is $5,556) - 12/11 Sold merchandise on credit to Gardner, Inc, invoice no. 873, for $7,000 (cost is $4,200). Terms are 2/10, n/30.

A) $\begin{array}{|c|c|l|l|l|c|l|c|} \hline \text { Date } & \begin{array}{c} \text { Account } \\ \text { Credited } \end{array} & \text { Explanation } & \text { Cash Dr. } & \begin{array}{c} \text { Sales } \\ \text { Disc. Dr. } \end{array} & \begin{array}{c} \text { Accounts } \\ \text { Receivable } \\ \text { Cr. } \end{array} & \text { Sales Cr. } & \begin{array}{c} \text { Other } \\ \text { Accounts } \\ \text { Cr. } \end{array} \\ \hline 12 / 10 & \text { Sales } & \text { Cash Sales } & 9,260 & & & & \\ \hline 12 / 11 & \text { Sales } & \text { Credit Sales } & & & 7,000 & &\\ \hline \end{array}$ B) C) D) E) A) $\begin{array}{|c|c|l|l|l|c|l|c|} \hline \text { Date } & \begin{array}{c} \text { Account } \\ \text { Credited } \end{array} & \text { Explanation } & \text { Cash Dr. } & \begin{array}{c} \text { Sales } \\ \text { Disc. Dr. } \end{array} & \begin{array}{c} \text { Accounts } \\ \text { Receivable } \\ \text { Cr. } \end{array} & \text { Sales Cr. } & \begin{array}{c} \text { Other } \\ \text { Accounts } \\ \text { Cr. } \end{array} \\ \hline 12 / 10 & \text { Sales } & \text { Cash Sales } & 9,260 & & & & \\ \hline 12 / 11 & \text { Sales } & \text { Credit Sales } & & & 7,000 & &\\ \hline \end{array}$ B) C) D) E)

Exam 17: Accounting With Special Journals

Argyle Company uses a cash receipts journal (periodic system) as shown below: Date Account Credited Explanation Cash Dr. Sales Disc. Dr. Accounts Receivable Cr. Sales Cr. Other Accounts Cr. How would the following transactions be recorded in this cash receipt journal? -12/10 Sold merchandise to Sock Company for $9,260 cash (cost is $5,556) - 12/11 Sold merchandise on credit to Gardner, Inc, invoice no. 873, for $7,000 (cost is $4,200). Terms are 2/10, n/30.

(Multiple Choice)

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Question 141

The use of an Accounts Payable controlling account:

(Multiple Choice)

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Question 142

What is the segment return on assets ratio? What is it used for?

(Essay)

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Question 143

The __________________ principle requires that an accounting information system conform to a company's activities, personnel, and structure and must adapt to a company's unique characteristics.

(Short Answer)

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Question 144

Match the following terms with the appropriate definitions:

The component of an accounting system that keeps data in a form accessible to information processors.

Purchases journal

A journal used to record all purchases on credit

Compatibility principle

An information system principle requiring that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Segment margin

Correct Answer:

Verified

The component of an accounting system that keeps data in a form accessible to information processors.

A journal used to record all purchases on credit

An information system principle requiring that the benefits from an activity in an accounting information system outweigh the costs of that activity.

A general ledger account, the balance of which (after posting) equals the sum of the balances of the accounts in a related subsidiary ledger

An information system principle requiring that an accounting information system conform with a company's activities, personnel and structure.

A journal used to record sales of merchandise on credit.

Any journal used for recording and posting transactions of a similar type.

The special journal that is used to record all receipts of cash.

A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.

A list of each customer from the accounts receivable ledger with their balances and the total.

(Matching)

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Question 145

A procedure called direct posting of sales invoices can substitute for the special sales journal.

(True/False)

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Question 146

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December: Record the above transactions using the journals below.

(Essay)

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Question 147

The Midwest segment of a company had a segment return on assets of 13%. If the revenues and operating income of this segment were $4 million and $1 million, respectively, what is the segment's average total assets amount?

(Multiple Choice)

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Question 148

In a typical cash receipts journal, you would expect to see the following columns:

(Multiple Choice)

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Question 149

The five fundamental principles of accounting information systems are:

(Multiple Choice)

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Question 150

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

(True/False)

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Question 151

Match the following definitions with the appropriate term(s):

An information system principle requiring that an accounting information system aid managers in controlling and monitoring business activities.

Accounting information system

A list of each customer from the accounts receivable ledger with their balances and the total.

Business segment

The special journal that is used to record all payments of cash.

Cash receipts journal

Correct Answer:

Verified

An information system principle requiring that an accounting information system aid managers in controlling and monitoring business activities.

A list of each customer from the accounts receivable ledger with their balances and the total.

The special journal that is used to record all payments of cash.

The people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers.

Links among computers giving different users and different computers access to common databases and programs.

A part of a company that can be separately identified by the products or services that it provides or by the geographic market that it serves.

The component of an accounting system that interprets, transforms, and summarizes information for use in analysis and reporting.

Programs that manage a company's vital operations which range from order-taking to manufacturing to accounting.

The special journal used to record all receipts of cash.

An information system principle requiring that an accounting system report useful, understandable, timely, and pertinent information for decision making.

(Matching)

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Question 152

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

(True/False)

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Question 153

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 as of May 7. There was no accounts payable on May 1.

(Essay)

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Question 154

The __________________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

(Short Answer)

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Question 155

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

(True/False)

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Question 156

In a typical purchases journal, you would expect to see the following columns:

(Multiple Choice)

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Question 157

___________________ processing enters and processes data as soon as source documents are available.

(Short Answer)

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Question 158

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system. a. Use the sales journal and the cash receipts journal to record these transactions b. Prepare a schedule of accounts receivable. There were no accounts receivable at December 1.

(Essay)

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Question 159

The flexibility principle of accounting information systems requires that the:

(Multiple Choice)

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Question 160

The use of an Accounts Payable controlling account:

What is the segment return on assets ratio? What is it used for?

The __________________ principle requires that an accounting information system conform to a company's activities, personnel, and structure and must adapt to a company's unique characteristics.

A procedure called direct posting of sales invoices can substitute for the special sales journal.

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December: Record the above transactions using the journals below.

The Midwest segment of a company had a segment return on assets of 13%. If the revenues and operating income of this segment were $4 million and $1 million, respectively, what is the segment's average total assets amount?

In a typical cash receipts journal, you would expect to see the following columns:

The five fundamental principles of accounting information systems are:

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

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

The __________________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

In a typical purchases journal, you would expect to see the following columns:

___________________ processing enters and processes data as soon as source documents are available.

The flexibility principle of accounting information systems requires that the:

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

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