Question 1

A subsidiary ledger that contains a separate account for each party that grants credit onaccount to the business is called a(n):

Accepted Answer

A) Accounts Receivable Ledger. 
B) Merchandise Inventory Ledger. 
C) Controlling account. 
D) Accounts Payable. 
E) Accounts Payable Ledger. 
A) Accounts Receivable Ledger. 
B) Merchandise Inventory Ledger. 
C) Controlling account. 
D) Accounts Payable. 
E) Accounts Payable Ledger.

Question 2

A columnar journal is a journal with only one column

Accepted Answer

A) True 
 B)False

Question 3

Payroll taxes are levied on wages actually paid, not on accrued wages

Accepted Answer

A) True 
 B)False

Question 4

The Accounts Receivable ledger is

Accepted Answer

A) used for recording cash receipts from customers. 
B) used for storing transaction data for individual creditors. 
C) used for storing transaction data for individual customers. 
D) also the controlling account. 
E) used for recording credit sales. 
A) used for recording cash receipts from customers. 
B) used for storing transaction data for individual creditors. 
C) used for storing transaction data for individual customers. 
D) also the controlling account. 
E) used for recording credit sales.

Question 5

Accounting information systems

Accepted Answer

A) Communicate information to decision makers. 
B) Organize data in useful forms. 
C) Both collect and process data from events and transactions and organize data in useful forms. 
D) Collect and process data from events and transactions. 
E) All of these answers are correct. 
A) Communicate information to decision makers. 
B) Organize data in useful forms. 
C) Both collect and process data from events and transactions and organize data in useful forms. 
D) Collect and process data from events and transactions. 
E) All of these answers are correct.

Question 6

The Payroll Register is generally used to post information directly to the accounts

Accepted Answer

A) True 
 B)False

Question 7

In a periodic inventory system

Accepted Answer

A) The cash disbursements journal tracks purchase discounts. 
B) The cash receipts journal tracks sales returns and allowances taken. 
C) The sales journal tracks decreases in inventory. 
D) The cash receipt journal tracks cost of goods sold. 
E) The sales journal tracks merchandise inventory bought. 
A) The cash disbursements journal tracks purchase discounts. 
B) The cash receipts journal tracks sales returns and allowances taken. 
C) The sales journal tracks decreases in inventory. 
D) The cash receipt journal tracks cost of goods sold. 
E) The sales journal tracks merchandise inventory bought.

Question 8

Accounting information systems are designed to capture information about a company's transactions and to provide output including financial statements and special purpose reports.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The payroll tax liabilities arising from a given pay period are likely to be larger than the payroll tax expenses.

Accepted Answer

A) True 
 B)False

Question 11

Each transaction recorded in the Sales Journal includes a debit to Accounts Receivable and a credit to Sales Revenue.

Accepted Answer

A) True 
 B)False

Question 12

According to law, a T-4 form showing wages earned and taxes withheld must be given each employee within two months after the calendar year-end.

Accepted Answer

A) True 
 B)False

Question 13

The ledger that contains the financial statement accounts of a business is the

Accepted Answer

A) Columnar journal. 
B) General ledger. 
C) General journal. 
D) Accounts payable ledger. 
E) Subsidiary ledger. 
A) Columnar journal. 
B) General ledger. 
C) General journal. 
D) Accounts payable ledger. 
E) Subsidiary ledger.

Question 14

A company's sales personnel earned salaries of $15,000 during the pay periodDecember 5-10, all of which were subject to 1.88% EI withholdings. All employees had reached the annual maximum earnings for the Canada Pension Plan. In addition, thecompany has agreed with its employees to withhold the following amounts: $900 forhospital insurance, $2,600 for federal and provincial income taxes, and $180 for union dues. Calculate the general journal entry credit amount on December 10 to "SalariesPayable."

Accepted Answer

A) $15,000.00. 
B) $11,218.00. 
C) $11,038.00. 
D) $10,303.00. 
E) Some other amount. 
A) $15,000.00. 
B) $11,218.00. 
C) $11,038.00. 
D) $10,303.00. 
E) Some other amount.

Question 15

A management information system (MIS)is designed to collect and process data within an organization for the purpose of providing users with information.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Employee income taxes are paid solely by employers based on a percentage of total wages earned by the employee.

Accepted Answer

A) True 
 B)False

Question 18

The MIS is a subsystem of the accounting information system

Accepted Answer

A) True 
 B)False

Question 19

Outdoors Unlimited has the following transactionsSales Journal(b)Purchases Journal(c)Cash Receipts Journal(d)Cash Disbursements Journal(e)General Journal______ (1)Purchased merchandise for cash.______ (2)Sold merchandise for cash.______ (3)Purchased merchandise on credit.______ (4)Sold merchandise on credit.______ (5)Paid the utility bill.______ (6)Owner invested more cash in the business.______ (7)Recorded depreciation for the period.______ (8)Borrowed money from the bank and received cash.______ (9)Bought store supplies for cash.______ (10)Customer paid off an account receivable.

Accepted Answer

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

Question 20

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

A subsidiary ledger that contains a separate account for each party that grants credit onaccount to the business is called a(n):

A columnar journal is a journal with only one column

Payroll taxes are levied on wages actually paid, not on accrued wages

The Accounts Receivable ledger is

Accounting information systems

The Payroll Register is generally used to post information directly to the accounts

In a periodic inventory system

Accounting information systems are designed to capture information about a company's transactions and to provide output including financial statements and special purpose reports.

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

The payroll tax liabilities arising from a given pay period are likely to be larger than the payroll tax expenses.

Each transaction recorded in the Sales Journal includes a debit to Accounts Receivable and a credit to Sales Revenue.

According to law, a T-4 form showing wages earned and taxes withheld must be given each employee within two months after the calendar year-end.

The ledger that contains the financial statement accounts of a business is the

A management information system (MIS)is designed to collect and process data within an organization for the purpose of providing users with information.

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

Employee income taxes are paid solely by employers based on a percentage of total wages earned by the employee.

The MIS is a subsystem of the accounting information system

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

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

A subsidiary ledger that contains a separate account for each party that grants credit onaccount to the business is called a(n):

A columnar journal is a journal with only one column

Payroll taxes are levied on wages actually paid, not on accrued wages

The Accounts Receivable ledger is

Accounting information systems

The Payroll Register is generally used to post information directly to the accounts

In a periodic inventory system

Accounting information systems are designed to capture information about a company's transactions and to provide output including financial statements and special purpose reports.

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

The payroll tax liabilities arising from a given pay period are likely to be larger than the payroll tax expenses.

Each transaction recorded in the Sales Journal includes a debit to Accounts Receivable and a credit to Sales Revenue.

According to law, a T-4 form showing wages earned and taxes withheld must be given each employee within two months after the calendar year-end.

The ledger that contains the financial statement accounts of a business is the

A management information system (MIS)is designed to collect and process data within an organization for the purpose of providing users with information.

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

Employee income taxes are paid solely by employers based on a percentage of total wages earned by the employee.

The MIS is a subsystem of the accounting information system

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

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