Exam 3: Transaction Processing in the Ais

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.Which of the following accounts will have the same final digit?

Which of the following most clearly differentiates accounting and bookkeeping?

Which of the following best pairs an element of bookkeeping with an example of the element?

NTR Corporation has offices in both Los Angeles and San Francisco.In the Los Angeles office, the account number for cash is 001.101.In San Francisco, the account number for cash is 002.101.The account number for accounts receivable in the Los Angeles office is therefore likely to be:

Which of the following phrases most closely relates to bookkeeping?

Please refer to the following unadjusted trial balance in answering the below question. When VLN completes the ninth step in the accounting cycle, all of the following accounts will be involved except:

Supply the correct word for each lettered item below to complete the American Accounting Association's definition of accounting.Accounting is the process of (a), (b), and (c) economic information to permit (d), (e) and decisions by (f) of the information. a.__________________ b.__________________ c.__________________ d.__________________ e.__________________ f.__________________

An accountant received a stack of sales invoices.Which of the following statements is most true?

Courses intended for freshmen at a local university are numbered from 100 to 199, while courses intended for seniors at the same university are numbered from 400 to 499.Which coding system is the university using?

Information technology:

Common internal controls associated with source documents include: (i) sequential numbering, (ii) physical security, (iii) equality of debits and credits.

MNR Corporation uses block coding for its chart of accounts.Selected account titles are listed below on the left in alphabetic order; account numbers for those accounts are listed in random order on the right.Match each account name with the most appropriate number using the principles of block coding.

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. All of the following transactions will be part of the third step in the accounting cycle except:

As an internal control, RSR Corporation requires two signatures on all checks over $500, thus illustrating the importance of:

Plant assets, such as equipment, are reported on financial statements at their book value, thus exemplifying:

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.Which of the following includes accounts that should all have the same first digit?

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's operations are currently confined to a single state, but management is considering expanding to additional states.Which of the following statements is most true?

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 income statement?

Human judgment is important in which of the following AIS tasks: (i) designing source documents, (ii) recognizing recordable transactions.

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.The accounting cycle includes three different versions of the trial balance.For CNC, the totals of the trial balance prepared in the seventh step at the end of January will be: