Question 1

Two common subsidiary ledgers are cash receipts and cash disbursements

Accepted Answer

A) True 
 B)False

Question 2

Canada Pension Plan deductions are social security taxes

Accepted Answer

A) True 
 B)False

Question 3

Three issues involving the Sales Journal includerecording sales taxes (2)recordingsales returns and allowances and (3)recording purchase discounts.

Accepted Answer

A) True 
 B)False

Question 4

Canada Pension Plan is levied equally on the employee and the employer

Accepted Answer

A) True 
 B)False

Question 5

(1)Borrowed $5,000 from the bank.______ (2)A customer returned a $250 item purchased on account.______ (3)Purchased merchandise on account, $2,700.______ (4)Purchased a display rack on account for $4,700.______ (5)Paid $65,000 in wages and salaries.______ (6)Paid a utility bill for $3,400.______ (7)Purchased $1,590 of store supplies on account.______ (8)Recorded depreciation on store equipment of $4,000.______ (9)Returned defective inventory purchased on account, $2,900.______ (10)Recorded cash sales of $14,700.

Accepted Answer

(1) c (2) e (3) b (4

Question 6

The Purchases Journal is used for

Accepted Answer

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

Question 7

The special journals under the perpetual inventory system

Accepted Answer

A) Include an additional cost of goods sold journal. 
B) Include an additional inventory journal. 
C) Include an additional sales tax payable journal. 
D) Include the sales journal, cash receipts journal, purchases journal, and cash disbursements journal. 
E) Include both an additional inventory journal and an additional cost of goods sold journal. 
A) Include an additional cost of goods sold journal. 
B) Include an additional inventory journal. 
C) Include an additional sales tax payable journal. 
D) Include the sales journal, cash receipts journal, purchases journal, and cash disbursements journal. 
E) Include both an additional inventory journal and an additional cost of goods sold journal.

Question 8

Special journals include

Accepted Answer

A) Cash disbursements journal. 
B) Cash receipts journal. 
C) Purchases journal. 
D) Sales journal. 
E) All of these answers are correct. 
A) Cash disbursements journal. 
B) Cash receipts journal. 
C) Purchases journal. 
D) Sales journal. 
E) All of these answers are correct.

Question 9

Payroll taxes levied on employers include Canada Pension and Employment Insurance

Accepted Answer

A) True 
 B)False

Question 10

The basic components of an accounting system include

Accepted Answer

A) Information storage. 
B) Input devices. 
C) Information processors. 
D) Source documents. 
E) All of these answers are correct. 
A) Information storage. 
B) Input devices. 
C) Information processors. 
D) Source documents. 
E) All of these answers are correct.

Question 11

Since payroll taxes are levied on wages actually paid, there is no legal liability for payroll taxes associated with the accrual of wages.

Accepted Answer

A) True 
 B)False

Question 12

Items posted from the General Journal carry the initial P

Accepted Answer

A) True 
 B)False

Question 13

Why do we use invoice date rather than the purchase date when recordingtransactions in the purchase journal.

Accepted Answer

The terms of payment extend fr

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

An employer incurs a Canada Pension Plan expense equal to the sum of the CPP 4)withheld from the wages of all its employees.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the differences in the special journals for a perpetual versus a periodicinventory system.

Accepted Answer

Under the perpetual inventory system, th

Question 17

An amount of an employee's annual earnings not subject to income tax is the

Accepted Answer

A) Workers' compensation allowance. 
B) Canada Pension Plan allowance. 
C) Basic personal amount. 
D) Workers' allowance. 
E) Employment insurance allowance. 
A) Workers' compensation allowance. 
B) Canada Pension Plan allowance. 
C) Basic personal amount. 
D) Workers' allowance. 
E) Employment insurance allowance.

Question 18

The sale of inventory may

Accepted Answer

A) decrease inventory. 
B) impact the Sales Journal. 
C) initiate billing. 
D) create accounts receivable. 
E) All of these answers are correct. 
A) decrease inventory. 
B) impact the Sales Journal. 
C) initiate billing. 
D) create accounts receivable. 
E) All of these answers are correct.

Question 19

Define an accounting information system (AIS)

Accepted Answer

An accounting information system is a gr

Question 20

Four qualitative characteristics of information produced by an AIS are that the information must be timely, accurate, relevant and cost-effective.

Accepted Answer

A) True 
 B)False

Two common subsidiary ledgers are cash receipts and cash disbursements

Canada Pension Plan deductions are social security taxes

Three issues involving the Sales Journal includerecording sales taxes (2)recordingsales returns and allowances and (3)recording purchase discounts.

Canada Pension Plan is levied equally on the employee and the employer

The Purchases Journal is used for

The special journals under the perpetual inventory system

Special journals include

Payroll taxes levied on employers include Canada Pension and Employment Insurance

The basic components of an accounting system include

Since payroll taxes are levied on wages actually paid, there is no legal liability for payroll taxes associated with the accrual of wages.

Items posted from the General Journal carry the initial P

Why do we use invoice date rather than the purchase date when recordingtransactions in the purchase journal.

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

An employer incurs a Canada Pension Plan expense equal to the sum of the CPP 4)withheld from the wages of all its employees.

Discuss the differences in the special journals for a perpetual versus a periodicinventory system.

An amount of an employee's annual earnings not subject to income tax is the

The sale of inventory may

Define an accounting information system (AIS)

Four qualitative characteristics of information produced by an AIS are that the information must be timely, accurate, relevant and cost-effective.

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

Filters

Exam 9: Appendix

Two common subsidiary ledgers are cash receipts and cash disbursements

Canada Pension Plan deductions are social security taxes

Three issues involving the Sales Journal includerecording sales taxes (2)recordingsales returns and allowances and (3)recording purchase discounts.

Canada Pension Plan is levied equally on the employee and the employer

The Purchases Journal is used for

The special journals under the perpetual inventory system

Special journals include

Payroll taxes levied on employers include Canada Pension and Employment Insurance

The basic components of an accounting system include

Since payroll taxes are levied on wages actually paid, there is no legal liability for payroll taxes associated with the accrual of wages.

Items posted from the General Journal carry the initial P

Why do we use invoice date rather than the purchase date when recordingtransactions in the purchase journal.

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

An employer incurs a Canada Pension Plan expense equal to the sum of the CPP 4)withheld from the wages of all its employees.

Discuss the differences in the special journals for a perpetual versus a periodicinventory system.

An amount of an employee's annual earnings not subject to income tax is the

The sale of inventory may

Define an accounting information system (AIS)

Four qualitative characteristics of information produced by an AIS are that the information must be timely, accurate, relevant and cost-effective.

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

Filters