Question 1

The General Ledger system represents the primary data base in the AIS

Accepted Answer

A) True 
 B)False

Question 2

Equipment, inventory, and investments may also need subsidiary ledgers

Accepted Answer

A) True 
 B)False

Question 3

The Accounts Payable account in the General Ledger is

Accepted Answer

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

Question 4

Canada Pension Plan is withheld from wages earned, except the withholding stops each 3)year as soon as the employee has earned the maximum pensionable earnings for that year.

Accepted Answer

A) True 
 B)False

Question 5

A bookkeeper using a Purchases Journal recorded new store supplies purchased onaccount. The subledger that would be impacted as a result of this transaction is the:

Accepted Answer

A) Accounts receivable subledger. 
B) Merchandise inventory subledger. 
C) Accounts payable subledger. 
D) Cash receipts journal. 
E) Sales subledger. 
A) Accounts receivable subledger. 
B) Merchandise inventory subledger. 
C) Accounts payable subledger. 
D) Cash receipts journal. 
E) Sales subledger.

Question 6

One difference in the Sales Journal between the perpetual and periodic systems is

Accepted Answer

A) The addition of a sales tax payable column. 
B) The deletion of a sales tax payable column. 
C) The column to record cost of goods sold and inventory amounts sold. 
D) The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column. 
E) The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column. 
A) The addition of a sales tax payable column. 
B) The deletion of a sales tax payable column. 
C) The column to record cost of goods sold and inventory amounts sold. 
D) The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column. 
E) The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column.

Question 7

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

Accepted Answer

A) True 
 B)False

Question 8

The Payroll Register provides the information needed to pay employees

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) General Ledger. 
B) General Journal. 
C) Special Journal. 
D) Column balance ledger. 
E) Special Ledger. 
A) General Ledger. 
B) General Journal. 
C) Special Journal. 
D) Column balance ledger. 
E) Special Ledger.

Question 10

The three primary components of accounting information systems are

Accepted Answer

A) Compatibility, flexibility, and cost-benefit. 
B) Compatibility, flexibility, and safety. 
C) Compatibility, timeliness, and cost-benefit. 
D) Accounts payable, accounts receivable, and payroll. 
E) Relevance, compatibility, and flexibility. 
A) Compatibility, flexibility, and cost-benefit. 
B) Compatibility, flexibility, and safety. 
C) Compatibility, timeliness, and cost-benefit. 
D) Accounts payable, accounts receivable, and payroll. 
E) Relevance, compatibility, and flexibility.

Question 11

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.

Accepted Answer

A) True 
 B)False

Question 12

Since Red River Company experienced very few on the job accidents, the company has received a very favourable rating. As a result, it should expect to pay substantiallysmaller amounts of employment insurance premiums than normal.

Accepted Answer

A) True 
 B)False

Question 13

After posting the entries to record salary expenses and payroll expenses, AlphaCompany's Employment Insurance Payable account has a $9,000 credit balance. This means that the payroll tax expense of Alpha Company included a $9,000 expenseresulting from Employment Insurance.

Accepted Answer

A) True 
 B)False

Question 14

Net pay is:

Accepted Answer

A) Gross pay plus employer's taxes 
B) The amount of an employee's pay before any deductions. 
C) The amount of an employee's pay due for income taxes. 
D) Gross pay minus source deductions. 
E) None of these answers is correct. 
A) Gross pay plus employer's taxes 
B) The amount of an employee's pay before any deductions. 
C) The amount of an employee's pay due for income taxes. 
D) Gross pay minus source deductions. 
E) None of these answers is correct.

Question 15

The following transactions were completed by Augsburg Company during the month of May:   Prepare a Cash Receipts Journal for Augsburg and record the appropriate transactions, assuming a perpetual inventory system is used.

Accepted Answer

The answer of The following transactions were completed by Augsburg...

Question 16

A book of original entry that is designed and used for recording only a specified type oftransaction is called a:

Accepted Answer

A) Special journal. 
B) Columnar ledger. 
C) General journal. 
D) Subsidiary ledger. 
E) Schedule. 
A) Special journal. 
B) Columnar ledger. 
C) General journal. 
D) Subsidiary ledger. 
E) Schedule.

Question 17

Off-the-shelf accounting software is inadequate to meet the needs of small businesses

Accepted Answer

A) True 
 B)False

Question 18

When posting from special journals all debit and credit entries are entered as separateamounts.

Accepted Answer

A) True 
 B)False

Question 19

The entry to record payroll includes a debit to salaries payable

Accepted Answer

A) True 
 B)False

Question 20

A company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a CashDisbursements Journal, and a General Journal. A sales return for credit on account would be recorded in the:

Accepted Answer

A) General Journal. 
B) Sales Journal. 
C) Accounts Receivable Ledger. 
D) Cash Receipts Journal. 
E) Cash Disbursements Journal. 
A) General Journal. 
B) Sales Journal. 
C) Accounts Receivable Ledger. 
D) Cash Receipts Journal. 
E) Cash Disbursements Journal.

The General Ledger system represents the primary data base in the AIS

Equipment, inventory, and investments may also need subsidiary ledgers

The Accounts Payable account in the General Ledger is

Canada Pension Plan is withheld from wages earned, except the withholding stops each 3)year as soon as the employee has earned the maximum pensionable earnings for that year.

A bookkeeper using a Purchases Journal recorded new store supplies purchased onaccount. The subledger that would be impacted as a result of this transaction is the:

One difference in the Sales Journal between the perpetual and periodic systems is

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

The Payroll Register provides the information needed to pay employees

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

The three primary components of accounting information systems are

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.

Since Red River Company experienced very few on the job accidents, the company has received a very favourable rating. As a result, it should expect to pay substantiallysmaller amounts of employment insurance premiums than normal.

After posting the entries to record salary expenses and payroll expenses, AlphaCompany's Employment Insurance Payable account has a $9,000 credit balance. This means that the payroll tax expense of Alpha Company included a $9,000 expenseresulting from Employment Insurance.

Net pay is:

The following transactions were completed by Augsburg Company during the month of May: Prepare a Cash Receipts Journal for Augsburg and record the appropriate transactions, assuming a perpetual inventory system is used.

A book of original entry that is designed and used for recording only a specified type oftransaction is called a:

Off-the-shelf accounting software is inadequate to meet the needs of small businesses

When posting from special journals all debit and credit entries are entered as separateamounts.

The entry to record payroll includes a debit to salaries payable

A company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a CashDisbursements Journal, and a General Journal. A sales return for credit on account would be recorded in the:

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

The General Ledger system represents the primary data base in the AIS

Equipment, inventory, and investments may also need subsidiary ledgers

The Accounts Payable account in the General Ledger is

Canada Pension Plan is withheld from wages earned, except the withholding stops each 3)year as soon as the employee has earned the maximum pensionable earnings for that year.

A bookkeeper using a Purchases Journal recorded new store supplies purchased onaccount. The subledger that would be impacted as a result of this transaction is the:

One difference in the Sales Journal between the perpetual and periodic systems is

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

The Payroll Register provides the information needed to pay employees

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

The three primary components of accounting information systems are

The Sales Journal and Cash Receipts Journal may have GST payable and PST payable columns added to them to facilitate recording.

Since Red River Company experienced very few on the job accidents, the company has received a very favourable rating. As a result, it should expect to pay substantiallysmaller amounts of employment insurance premiums than normal.

After posting the entries to record salary expenses and payroll expenses, AlphaCompany's Employment Insurance Payable account has a $9,000 credit balance. This means that the payroll tax expense of Alpha Company included a $9,000 expenseresulting from Employment Insurance.

Net pay is:

The following transactions were completed by Augsburg Company during the month of May: Prepare a Cash Receipts Journal for Augsburg and record the appropriate transactions, assuming a perpetual inventory system is used.

A book of original entry that is designed and used for recording only a specified type oftransaction is called a:

Off-the-shelf accounting software is inadequate to meet the needs of small businesses

When posting from special journals all debit and credit entries are entered as separateamounts.

The entry to record payroll includes a debit to salaries payable

A company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a CashDisbursements Journal, and a General Journal. A sales return for credit on account would be recorded in the:

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