Exam 3: Transaction Processing in the Ais

Which of the following sets includes amounts from a single financial statement?

Which step in the accounting cycle immediately precedes closing the temporary accounts?

Explain, in your own words, two similarities and two differences between "accounting" and "bookkeeping."

Which type of account is debited in each of the following adjusting entries? Which type of account is credited?

ABT Corporation uses block coding for its chart of accounts, which includes Cash (101), Land (201), Accounts payable (301) and Retained Earnings (501).Which of the following account numbers is most likely associated with an account that will appear on the adjusted trial balance but not on the post-closing trial balance?

As an internal control for source documents, sequential numbering is most likely to ___ an error.

Adjusting entries for accrued revenues and accrued expenses are similar in that:

BLP Company is a consulting firm with offices in Atlanta and San Diego; it provides consulting services in three main areas: finance, marketing and operations.Selected account titles from BLP's accounting information system appear below:

Just before preparing financial statements, an inexperienced accountant recorded the use of supplies by debiting supplies expense $100 and debiting supplies $100.Which of the following is most true?

At the end of 2014, CNC Corporation's accounting information system produced the following trial balance: CNC completed the following transactions in January 2015: a.Purchased inventory on account, $300. B.Collected cash from customers for prior year sales, $500. C.Paid current month's wages, $900. D.Had land appraised.Cost of doing the appraisal (paid in cash), $700.Appraised value of land, $3,000. E.Sold inventory with a cost basis of $200 on account, $800. F.Declared dividends, $50. G.Hired additional sales staff.Expected monthly salaries, $80. H.Purchased supplies for cash, $150. i.Paid creditors for previous purchases, $150. j.Signed a contract for annual employee retreat, $450.CNC uses block coding for its chart of accounts.The balance in account #101 at the end of January 2015 will be:

Put the following statements in the correct order based on the steps in the accounting cycle. a.Assemble AIS outputs. b.Debit cash and credit sales. c.Determine the correct way to enter a transaction in the AIS. d.Examine a bank statement to determine the amount of a bank service charge. e.Make entries that account for timing differences between cash flows and accrual basis revenue and expense. f.Prepare the AIS for a new fiscal year. g.Reorganize AIS information from chronological to account-based. h.Verify, for the first time, the equality of debits and credits in the ledger. i.Verify, for the second time, the equality of debits and credits in the ledger. j.Verify, for the third time, the equality of debits and credits in the ledger.

The text discussed common internal controls associated with the steps in the accounting cycle; it also discussed the role of human judgment and information technology in the cycle.Identify and describe: a.One way human judgment can improve internal control in the accounting cycle. b.One way information technology can improve internal control in the accounting cycle. c.One way human judgment can create internal control challenges in the accounting cycle. d.One way information technology can create internal control challenges in the accounting cycle.

The text discussed four common coding systems for AIS documents, charts of accounts and other applications.It also discussed a few common internal controls associated with the steps in the accounting cycle.Can the use of block or hierarchical coding in the chart of accounts be considered a form of internal control? Justify your response.

Which of the following steps in the accounting cycle occurs first?

Which of the following statements about human judgment and information technology in the AIS is most true?

All of the following are common coding systems used in organizations except:

At the end of 2014, CNC Corporation's accounting information system produced the following trial balance: CNC completed the following transactions in January 2015: a.Purchased inventory on account, $300. B.Collected cash from customers for prior year sales, $500. C.Paid current month's wages, $900. D.Had land appraised.Cost of doing the appraisal (paid in cash), $700.Appraised value of land, $3,000. E.Sold inventory with a cost basis of $200 on account, $800. F.Declared dividends, $50. G.Hired additional sales staff.Expected monthly salaries, $80. H.Purchased supplies for cash, $150. i.Paid creditors for previous purchases, $150. j.Signed a contract for annual employee retreat, $450.In CNC's general ledger, the account number for inventory is 105.The account number for land is 201.Which of the following transactions will involve the account numbered 301?

Most companies make adjusting entries for depreciation because:

SBL Corporation's accounting records were destroyed in a fire.In reconstructing them:

Which type of coding system helps people remember the meaning of the code?