Question 1

A control account is used to record the details of the individual subsidiary accounts.

Accepted Answer

A) True 
 B)False  False

Question 2

Services provided on account are recorded in the revenue journal.

Accepted Answer

A) True 
 B)False  True

Question 3

The three phases of setting up an accounting system in correct order are

Accepted Answer

A)  design, implementation, analysis 
B)  analysis, design, implementation 
C)  design, analysis, implementation 
D)  implementation, design, analysis 
A)  design, implementation, analysis 
B)  analysis, design, implementation 
C)  design, analysis, implementation 
D)  implementation, design, analysis B

Question 4

$$\text { Match the transactions below with the journal or ledger in which it would be entered. }$$
-Record sale on account to customer
a. Purchases journal
b. Revenue journal
c. Cash receipts journal
d. Cash payments journal
e. Accounts receivable subsidiary ledger
f. Accounts payable subsidiary ledger
g. General journal

Accepted Answer

The answer of \[\text { Match the transactions below with...

Question 5

Every controlling account must have its own

Accepted Answer

A)  revenue ledger 
B)  general ledger 
C)  subsidiary ledger 
D)  journal 
A)  revenue ledger 
B)  general ledger 
C)  subsidiary ledger 
D)  journal

Question 6

Computerized accounting systems

Accepted Answer

A)  provide a tedious form of record keeping 
B)  improve the timeliness of reporting 
C)  prevent all journalizing errors 
D)  are only used in medium and large businesses 
A)  provide a tedious form of record keeping 
B)  improve the timeliness of reporting 
C)  prevent all journalizing errors 
D)  are only used in medium and large businesses

Question 7

The controlling account in the general ledger that summarizes the individual customer accounts in the subsidiary ledger is entitled

Accepted Answer

A)  Purchases 
B)  Accounts Payable 
C)  Fees Earned 
D)  Accounts Receivable 
A)  Purchases 
B)  Accounts Payable 
C)  Fees Earned 
D)  Accounts Receivable

Question 8

Eastwood Publishing reports the following segment data regarding its textbook sales:? $$\begin{array} { l r r } 
\hline \textbf { Segment } & \textbf { Current Year } & \textbf { Prior Year } \
\hline \text { College textbooks } & \$ 78,000 & \$ 55,000 \
\text { High school textbooks } & 129,000 & 115,000 \
\text { Elementary school textbooks } & \underline{ 105,000 }&\underline { 121,000 } \
\text { Total revenues } & \underline{\underline{ \$ 312,000 }} & \underline{\underline{\$ 291,000 }} \
\hline
\end{array}$$ Perform a horizontal analysis and a vertical analysis for Eastwood Publishing. Round to one decimal place.

Accepted Answer

Horizontal

Question 9

The cash receipts journal will be used for

Accepted Answer

A)  only cash received from customers on account 
B)  all cash received for any purpose 
C)  cash received from customers on account and cash sales 
D)  only cash received from cash sales 
A)  only cash received from customers on account 
B)  all cash received for any purpose 
C)  cash received from customers on account and cash sales 
D)  only cash received from cash sales

Question 10

The following cash receipts journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings? $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline { \textbf { Date } } & \textbf { Account } & \textbf { Post. } & \textbf { Fees Earned } & \textbf { Accounts } & \textbf { Cash } & \textbf { Other Accounts } \
& \textbf { Credited } & \textbf { Ref. } & \textbf { Cr. } & \textbf { Receivable Cr. } & \textbf { Cr. } & \textbf { Dr. } \
\hline & & & & & & \
\hline
\end{array}$$

Accepted Answer

The Cash column should be for debits 
(n

Question 11

The posting references in the following purchases journal are indicated by letters. Identify each posting reference [
(a) through 
(i)] as representing 
(1) a posting to a general ledger account, 
(2) a posting to a subsidiary ledger account, or 
(3) that no posting is required.? $\begin{array}{cc} 
&&&&&&&&&&&&& \textbf { PURCHASES } \
&&&&&&\textbf { JOURNAL } &&&&&&& \textbf { Page 1 }
\end{array}$
$\begin{array}{rllrcc}
\hline & & & \text { Accounts } & \text { Office } & \text { Store } \
\text { Date } & \text { Account } & \text { Post. } & \text { Payable } & \text { Supplies } & \text { Supplies } \
& \text { Credited } & \text { Ref. } & \text { Cr. } & \text { Dr. } & \text { Dr. }\\hline
\text { July } 3 & \text { Morton Company } & \text { (a) } & 1,150 & & 1,150 \
7 & \text { Jackson Co. } & \text { (b) } & 4,800 & 4,800 & \
14 & \text { Fallon Inc. } & \text { (c) } & 7,000 & 7,000 & \
26 & \text { Simpson Bros. } & \text { (d) } & \underline{2,350} & & \
31 & & & \underline{\underline{\mathbf{1 5 , 3 0 0}}} & \underline{\underline{\mathbf{1 1 , 8 0 0}}} & \underline{\underline{\mathbf{1 , 1 5 0}}}\
&&&(e)&(f)&(g)
\end{array}$

Accepted Answer

(1) General ledger account: (e

Question 12

In which journal would the payment of salaries be posted?

Accepted Answer

A)  cash receipts journal 
B)  special journal 
C)  cash payments journal 
D)  expense journal 
A)  cash receipts journal 
B)  special journal 
C)  cash payments journal 
D)  expense journal

Question 13

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

Accepted Answer

A)  Accounts Payable Cr., Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr. 
B)  Accounts Payable Dr., Other Accounts Dr., Beverage Supplies Cr., Food Supplies Cr., Retail Items Cr. 
C)  Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr., Cash Cr. 
D)  Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Cr., Accounts Payable Dr. 
A)  Accounts Payable Cr., Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr. 
B)  Accounts Payable Dr., Other Accounts Dr., Beverage Supplies Cr., Food Supplies Cr., Retail Items Cr. 
C)  Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr., Cash Cr. 
D)  Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Cr., Accounts Payable Dr.

Question 14

The following cash receipts journal headings have been suggested for Tower Tree-Trimming Service Company. Which of the following statements is false?​

Accepted Answer

A)  The second column should be Account Credited. 
B)  The Cash column should be a debit. 
C)  The Other Accounts column should be a credit. 
D)  The Accounts Receivable column should be a debit. 
A)  The second column should be Account Credited. 
B)  The Cash column should be a debit. 
C)  The Other Accounts column should be a credit. 
D)  The Accounts Receivable column should be a debit.

Question 15

In which journal is the return of supplies purchased on account recorded?

Accepted Answer

A)  general journal 
B)  cash receipts journal 
C)  cash payments journal 
D)  purchases journal 
A)  general journal 
B)  cash receipts journal 
C)  cash payments journal 
D)  purchases journal

Question 16

The primary ledger containing all the balance sheet and income statement accounts is the

Accepted Answer

A)  general ledger 
B)  creditors ledger 
C)  customers ledger 
D)  subsidiary ledger 
A)  general ledger 
B)  creditors ledger 
C)  customers ledger 
D)  subsidiary ledger

Question 17

The accounts receivable subsidiary ledger is an example of a special journal.

Accepted Answer

A) True 
 B)False

Question 18

An accounting system design consists of internal controls and information processing methods.

Accepted Answer

A) True 
 B)False

Question 19

Two transactions were posted to the following creditor's account:NAME Windsurf, Inc.ADDRESS 343 Coastline Road? $$\begin{array} { | r | l | c | c | c | r | } 
\hline \text { Date } & \text { Item } & \text { Post. Ref. } & \text { Debit } & \text { Credit } & \text { Balance } \
\hline \text { Aug. } 1 & \text { Balance } & & & & 1,210 \
\hline 8 & \text { Invoice No. } 333 & \text { CP38 } & 1,210 & & - \
\hline 15 & \text { Invoice No. } 567 & \text { P11 } & & 735 & 735 \
\hline & & & & & \
\hline
\end{array}$$ Describe each transaction and the source of each posting.?

Accepted Answer

Aug. 8Payment of $1,210 to Windsurf, Inc

Question 20

Describe and discuss e-commerce.

Accepted Answer

E-commerce is the term for using the Int

Exam 5: Accounting Systems

A control account is used to record the details of the individual subsidiary accounts.

Services provided on account are recorded in the revenue journal.

The three phases of setting up an accounting system in correct order are

Every controlling account must have its own

Computerized accounting systems

The controlling account in the general ledger that summarizes the individual customer accounts in the subsidiary ledger is entitled

The cash receipts journal will be used for

The following cash receipts journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings? Date Account Post. Fees Earned Accounts Cash Other Accounts Credited Ref. Cr. Receivable Cr. Cr. Dr.

In which journal would the payment of salaries be posted?

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

The following cash receipts journal headings have been suggested for Tower Tree-Trimming Service Company. Which of the following statements is false?​

In which journal is the return of supplies purchased on account recorded?

The primary ledger containing all the balance sheet and income statement accounts is the

The accounts receivable subsidiary ledger is an example of a special journal.

An accounting system design consists of internal controls and information processing methods.

Two transactions were posted to the following creditor's account:NAME Windsurf, Inc.ADDRESS 343 Coastline Road? Date Item Post. Ref. Debit Credit Balance Aug. 1 Balance 1,210 8 Invoice No. 333 CP38 1,210 - 15 Invoice No. 567 P11 735 735 Describe each transaction and the source of each posting.?

Describe and discuss e-commerce.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

The following cash receipts journal headings have been suggested for Tower Tree-Trimming Service Company. Which of the following statements is false?