Question 1

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290. Chandler would record this sale in the:

Accepted Answer

A) General journal. 
B) Accounts Receivable controlling account. 
C) General ledger. 
D) Sales journal. 
E) Cash receipts journal. 
A) General journal. 
B) Accounts Receivable controlling account. 
C) General ledger. 
D) Sales journal. 
E) Cash receipts journal.

Question 2

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Accepted Answer

A) True 
 B)False

Question 3

Computer networks are links among computers giving different users and different computers access to common databases, programs, and hardware.

Accepted Answer

A) True 
 B)False

Question 4

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

Accepted Answer

A) $14,994 in the Inventory Dr. column and $14,994 in the Accounts Payable Cr. column. 
B) $15,300 in the Accounts Payable Cr. column and $15,300 in the Inventory Dr. column. 
C) $15,300 in the Accounts Payable Cr. column and $15,300 in the Supplies Dr. column. 
D) $15,300 in the Other Accounts Dr. column and $15,000 in the Inventory Cr. column. 
E) $15,300 in the Inventory Dr. column, $14,994 in the Accounts Payable Cr. column, and $306 in the Purchase Discount Cr. column. 
A) $14,994 in the Inventory Dr. column and $14,994 in the Accounts Payable Cr. column. 
B) $15,300 in the Accounts Payable Cr. column and $15,300 in the Inventory Dr. column. 
C) $15,300 in the Accounts Payable Cr. column and $15,300 in the Supplies Dr. column. 
D) $15,300 in the Other Accounts Dr. column and $15,000 in the Inventory Cr. column. 
E) $15,300 in the Inventory Dr. column, $14,994 in the Accounts Payable Cr. column, and $306 in the Purchase Discount Cr. column.

Question 5

The process of adding the Debit column totals, then the credit column totals of a journal and comparing the two sums for equality is an example of:

Accepted Answer

A) Reconciling. 
B) Journalizing. 
C) Footing. 
D) Crossfooting. 
E) Posting. 
A) Reconciling. 
B) Journalizing. 
C) Footing. 
D) Crossfooting. 
E) Posting.

Question 6

The Accounts Payable controlling account:

Accepted Answer

A) Equals the sum of all balances of supplier accounts. 
B) Reduces the number of entries in the general journals. 
C) Increases the number of columns in the journals. 
D) Stores the transaction data of individual supplies. 
E) Is not included in a company's chart of accounts. 
A) Equals the sum of all balances of supplier accounts. 
B) Reduces the number of entries in the general journals. 
C) Increases the number of columns in the journals. 
D) Stores the transaction data of individual supplies. 
E) Is not included in a company's chart of accounts.

Question 7

If a company issues a check for $2,900 in payment of merchandise, identify the journal the transaction would be recorded in:

Accepted Answer

A) Cash disbursements journal. 
B) Cash receipts journal. 
C) Purchases journal. 
D) General journal. 
E) Sales journal. 
A) Cash disbursements journal. 
B) Cash receipts journal. 
C) Purchases journal. 
D) General journal. 
E) Sales journal.

Question 8

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Accepted Answer

A) True 
 B)False

Question 9

Explain the purposes, types, and uses of special journals.

Accepted Answer

Special journals are used for recording

Question 10

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 11

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

Accepted Answer

A) Schedule of accounts receivable. 
B) Controlling account. 
C) Subsidiary ledger. 
D) Special journal. 
E) Schedule of accounts. 
A) Schedule of accounts receivable. 
B) Controlling account. 
C) Subsidiary ledger. 
D) Special journal. 
E) Schedule of accounts.

Question 12

A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the journal the transaction would be recorded in:

Accepted Answer

A) Cash receipts journal. 
B) Purchase journal. 
C) General journal. 
D) Sales journal. 
E) Cash disbursements journal. 
A) Cash receipts journal. 
B) Purchase journal. 
C) General journal. 
D) Sales journal. 
E) Cash disbursements journal.

Question 13

Source documents:

Accepted Answer

A) Convert information to the system's processing component. 
B) Are input devices. 
C) Cannot be electronic files or web communications. 
D) Store processed information for future use. 
E) Provide the basic information processed by an accounting system. 
A) Convert information to the system's processing component. 
B) Are input devices. 
C) Cannot be electronic files or web communications. 
D) Store processed information for future use. 
E) Provide the basic information processed by an accounting system.

Question 14

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a feature of special journals?

Accepted Answer

A) They produce an efficient division of labor. 
B) They eliminate the need for a general journal. 
C) Good system design could collapse sales and cash receipts into one journal to better suit a business. 
D) They allow posting of amounts as column totals rather than as individual amounts. 
E) They are efficient tools in helping journalize and post transactions. 
A) They produce an efficient division of labor. 
B) They eliminate the need for a general journal. 
C) Good system design could collapse sales and cash receipts into one journal to better suit a business. 
D) They allow posting of amounts as column totals rather than as individual amounts. 
E) They are efficient tools in helping journalize and post transactions.

Question 16

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a special journal:

Accepted Answer

A) Cash disbursements journal. 
B) General journal. 
C) Purchases journal. 
D) Cash receipts journal. 
E) Sales journal. 
A) Cash disbursements journal. 
B) General journal. 
C) Purchases journal. 
D) Cash receipts journal. 
E) Sales journal.

Question 18

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Accepted Answer

A) True 
 B)False

Question 19

Information processors are systems that:

Accepted Answer

A) Keep data in an accessible form. 
B) Interpret, transform, and summarize information for use in analysis and reporting. 
C) Capture information from source documents. 
D) Eliminate the need for professional judgment due to their accuracy. 
E) Are the means to make information available to users. 
A) Keep data in an accessible form. 
B) Interpret, transform, and summarize information for use in analysis and reporting. 
C) Capture information from source documents. 
D) Eliminate the need for professional judgment due to their accuracy. 
E) Are the means to make information available to users.

Question 20

Posting debits from the Sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

Accepted Answer

A) True 
 B)False

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290. Chandler would record this sale in the:

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Computer networks are links among computers giving different users and different computers access to common databases, programs, and hardware.

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

The process of adding the Debit column totals, then the credit column totals of a journal and comparing the two sums for equality is an example of:

The Accounts Payable controlling account:

If a company issues a check for $2,900 in payment of merchandise, identify the journal the transaction would be recorded in:

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Explain the purposes, types, and uses of special journals.

A columnar journal is any journal with only one column.

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the journal the transaction would be recorded in:

Source documents:

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Which of the following is not a feature of special journals?

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Which of the following is not a special journal:

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Information processors are systems that:

Posting debits from the Sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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Exam 7: Accounting Information Systems

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290. Chandler would record this sale in the:

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Computer networks are links among computers giving different users and different computers access to common databases, programs, and hardware.

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

The process of adding the Debit column totals, then the credit column totals of a journal and comparing the two sums for equality is an example of:

The Accounts Payable controlling account:

If a company issues a check for $2,900 in payment of merchandise, identify the journal the transaction would be recorded in:

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Explain the purposes, types, and uses of special journals.

A columnar journal is any journal with only one column.

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the journal the transaction would be recorded in:

Source documents:

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Which of the following is not a feature of special journals?

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Which of the following is not a special journal:

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Information processors are systems that:

Posting debits from the Sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Filters