Question 1

Input devices include:

Accepted Answer

A)  Bar-code readers 
B)  Printers 
C)  Software 
D)  Ledgers 
E)  Database files 
A)  Bar-code readers 
B)  Printers 
C)  Software 
D)  Ledgers 
E)  Database files A

Question 2

Renton Co.uses special journals to record its transactions.They use the perpetual inventory system.Shown below are the purchasing and cash disbursement transactions for current month of May:
 \[\begin{array} { | l | l | l | } 
\hline \text { May } & 1 & \text { Purchased merchandise for cash from Zillah Co. } \$ 5,400 \text {, check no. } 1133 \text {. } \
\hline & 2 & \begin{array} { l } 
\text { Purchased office equipment from Echo Co. on credit, } \$ 7,200 \text {, terms } \mathrm{n} / 60 \text {. Invoice } \
\text { dated May 1. }
\end{array} \
\hline &6 & \begin{array} { l } 
\text { Paid Fox, Inc., } \$ 4,900 \text { cash for previous purchases on account, which is net of a } \
\$ 100 \text { discount, check no. } 1134.
\end{array} \
\hline & 9 & \begin{array} { l } 
\text { Purchased merchandise from Inca, Inc. on credit, terms } 1 / 15, \mathrm{n} / 30, \$ 24,600 \text {. Invoice }\
\text { dated May 8. }
\end{array} \
\hline & 10 & \text { Paid Echo Co. cash for May } 2 \text { purchase, Check No. } 1135 .\
\hline &18 & \begin{array} { l } 
\text { Purchased office supplies on credit } \$ 230 \text {, terms net EOM from Howe, Inc, , invoice }\
\text { dated May } 18
\end{array} \
\hline
\end{array}\] 
Record these transactions in the following journals:
 $$\begin{array}{l}
\text { Purchases Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \text { Account } & \begin{array} { l } 
\text { Date of } \
\text { Invoice }
\end{array} & \text { Terms } & \text { PR } & \begin{array} { l } 
\text { Accounts } \
\text { Payable } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Inventory } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Office } \
\text { Supplies } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts } \
\text { Dr }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$ 
 $$\begin{array}{l}
\text { Cash Disbursements Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \begin{array} { l } 
\text { Ck. } \
\text { No. }
\end{array} & \text { Payee } & \begin{array} { l } 
\text { Account } \
\text { Debited }
\end{array} & \text { PR } & \begin{array} { l } 
\text { Cash } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Irventory } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Other }\
\text { Accounts } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Accounts } \
\text { Payable } \
\text { Dr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

\[\begin{array}{l}
\text { Purchases Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \text { Account } & \begin{array} { l } 
\text { Date of } \
\text { Invoice }
\end{array} & \text { Terms } & \text { PR } & \begin{array} { l } 
\text { Accounts } \
\text { Payable } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Inventory } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Office } \
\text { Supplies } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts } \
\text { Dr. }
\end{array} \
\hline 5 / 2 & \begin{array} { l } 
\text { Office } \
\text { Equip }
\end{array} & \text { May 1 } & \mathrm {n } / 60 & & 7,200 & & & 7,200 \
\hline 5 / 9 & \text { Inca. Inc. } & \text { May 8 } & 1 / 15 , \mathrm { n } / 30 & & 24,600 & 24,600 & & \
\hline 5 / 18 & \text { Howe, Inc. } & \text { May 18 } & \mathrm { EOM } & & 230 & & \mathbf { 2 3 0 } & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}\] $$\begin{array}{l}
\text { Cash Disbursements Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \begin{array} { l } 
\text { Ck. } \
\text { No. }
\end{array} & \text { Payee } & \begin{array} { l } 
\text { Account } \
\text { Debited }
\end{array} & \text { PR }& \begin{array} { l } 
\text { Cash } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Inventory } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Accounts } \
\text { Payable } \
\text { Dr. }
\end{array} \
\hline 5 / 1 & 1133 & \text { Zillah Co. } & \text { Inventory } & & 5,400 & & & \
\hline 5 / 6 & 1134 & \text { Fox, Inc. } & \text { Fox Inc. } & & 4,900 & 100 & & 5,000 \
\hline 5 / 10 & 1135 & \text { Echo Co. } & \text { Echo Inc. } & & 7,200 & & & 7,200 \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Question 3

______________________ provide the basic information processed by an accounting system and can include bank statements,billings to customers,and employee earnings records.

Accepted Answer

Source documents

Question 4

A __________________ journal is used to record and post transactions of similar type.

Accepted Answer

The answer of A __________________ journal is used to record...

Question 5

Accounting information processes are structured to eliminate the need for professional judgment.

Accepted Answer

A) True 
 B)False

Question 6

A subsidiary ledger:

Accepted Answer

A)  Includes transactions not covered by special journals. 
B)  Is a listing of all of the accounts of a business. 
C)  Is a listing of individual accounts with a common characteristic. 
D)  Is also called a general ledger. 
E)  Is also called a special journal. 
A)  Includes transactions not covered by special journals. 
B)  Is a listing of all of the accounts of a business. 
C)  Is a listing of individual accounts with a common characteristic. 
D)  Is also called a general ledger. 
E)  Is also called a special journal.

Question 7

Outdoors Unlimited uses special journals to record its daily transactions.They use the perpetual inventory system.Shown below is its cash receipts journal and selected ledger accounts.Post the cash receipts journal to the appropriate ledger accounts.

Accepted Answer

@#IMG-DLM&_TB6312_00

Question 8

The Asian segment of a multinational company had a segment return on assets of 60%.If the revenues and operating income of this segment were $17,000 million and $14,586 million,respectively,what is the segment's average total assets amount?

Accepted Answer

A)  $24,310 million 
B)  $28,333 million 
C)  $52,643 million 
D)  $10,200 million 
E)  $8,751 million 
A)  $24,310 million 
B)  $28,333 million 
C)  $52,643 million 
D)  $10,200 million 
E)  $8,751 million

Question 9

A business segment:

Accepted Answer

A)  Requires only internal reporting. 
B)  Is a part of a company that is separately identified by its products, services, or geographic market. 
C)  Requires special journals. 
D)  Requires subsidiary ledgers. 
E)  Cannot report its results separately. 
A)  Requires only internal reporting. 
B)  Is a part of a company that is separately identified by its products, services, or geographic market. 
C)  Requires special journals. 
D)  Requires subsidiary ledgers. 
E)  Cannot report its results separately.

Question 10

The purchases journal is used to record cash purchases of merchandise.

Accepted Answer

A) True 
 B)False

Question 11

An accounts payable ledger is:

Accepted Answer

A)  A subsidiary ledger that contains an account for each of the company's suppliers. 
B)  A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specific type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company. 
A)  A subsidiary ledger that contains an account for each of the company's suppliers. 
B)  A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specific type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Accepted Answer

The answer of _______________________ are links among computers giving different...

Question 14

The Woodview Company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.They use the periodic inventory method.The following transactions occurred during the month of December:
 \[
\begin{array}{|l|l|l|}
\hline\text { Dec. }&4&\text { Sold merchandise on credit for } \$ 3,300 \text { to the } A \& B \text { Co., invoice no. } 313 \text {. }\
\hline&8&\text { Purchased merchandise on credit for } \$ 1,800 \text { from the Dexter Co., terms } 2 / 10, \text{n} / 30 \text {. }\
&&\text { Invoice dated December } 8 \text {. }\
\hline&10&\text { Sold merchandise for } \$ 500 \text { cash to RAC Corp, invoice } 314 \text {. }\
\hline&13&\text { Collected } \$ 3,300 \text { from the } A \& B \text { Co. for merchandise sold on December } 4 \text {. }\
\hline&17&\text { Paid amount owed to Dexter Co. from December } 8 \text { purchase, check no. } 1011 .\
\hline&24&\text { Sold merchandise on credit for } \$ 4,500 \text { to Dunn Corp. invoice no. } 315 \text {. }\
\hline&27&\text { Paid } \$ 400 \text { cash for monthly rent to Dayton Properties, check no. } 1012 \text {. }\
\hline&31&\text { Purchased equipment for } \$ 3,055 \text { from Fort Corp., check no. } 1013 \text {. }\

\hline
\end{array}
\] 
Record the above transactions using the journals below.
 $

\text{Sales Journal}\
\text{Page} 15\

\begin{array} { | l | l | l | l | l | } 
\hline&\text{Account }\
\text { Date } &\text { Debited }&\text { Invoice Number } & \text { PR } & \text { Accounts Receivable Dr. Sales Cr. } \
\hline\
\hline\
\hline\
\hline\
\hline\
\hline
\end{array}$ 
 $

\text{Purchases Journal}\
\text{Page} 20\

\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline&&&&&&&\text{Office}&\text{Other}\
&& \text { Date of }&&&\text { Accounts } & \text { Purchases } & \text { Supplies } & \text { Accounts }\
\text { Date } & \text { Account } & \text { Invoice } & \text { Terms } & \text { PR } & \text { Payable Cr. } & \text { Dr. } & \text { Dr. }& \text { Dr. }\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline
\end{array}$ 
 $$\begin{array}{l}
\mathbf { Cash~ Receipts~ Journal}\
\mathbf { Page~ 17}\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \begin{array} { l } 
\text { Account } \
\text { Credited }
\end{array} & \text { Explanation } & \text { PR } & \begin{array} { l } 
\text { Cash } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Sales } \
\text { Discount } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Accounts} \
\text { Receivable} \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Sales } \
\text { Cr. }
\end{array}&\begin{array} { l } 
\text { Other Accounts } \
\text { Cr. }
\end{array}\

\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$ 
 $$\begin{array}{l}
\mathbf { Cash~ Disbursements~ Jaurnal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \begin{array} { l } 
\text { Ck. } \
\text { No. }
\end{array} & \text { Payee } & \begin{array} { l } 
\text { Account } \
\text { Debited }
\end{array} & \text { PR } & \begin{array} { l } 
\text { Cash } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Purchase } \
\text { Discounts } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Accounts } \
\text { Payable } \
\text { Dr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

@#IMG-DLM&_TB6312_00_TB6312_00

Question 15

When a company uses special journals,the general journal is used for selected transactions and events including:

Accepted Answer

A)  Recording adjusting transactions. 
B)  Posting transactions to special journals. 
C)  Accumulating debits and credits. 
D)  Collecting detailed listings of amounts. 
E)  Recording cash receipts. 
A)  Recording adjusting transactions. 
B)  Posting transactions to special journals. 
C)  Accumulating debits and credits. 
D)  Collecting detailed listings of amounts. 
E)  Recording cash receipts.

Question 16

The Sun Company completed the following sales and cash receipts transactions during the first week of December.The Sun Company uses the periodic inventory system.
 \[\begin{array}{|l|l|}
\hline\text{Dec. 1}& \text{Sold merchandise for \$ 6,700 on credit to the Two Rivers Co., terms 2/10, n/30 .}\
&\text{Invoice no. 1455 . Cost of the merchandise sold is  \$ 3,600 .}\
\hline\text{Dec. 1}&\text{ Sold merchandise for  \$ 3,400  on credit to the Berlin Co., terms 2/10, n/30 . Invoice no. }\
&\text{ 1456. Cost of the merchandise sold is \$ 2,900 . }\
\hline\text{Dec. 2}&\text{ Sold merchandise for \$ 590 for cash to the Ellison Co. Invoice no. 1457. Cost of the }\
&\text{ merchandise sold is \$ 300. }\
\hline\text{Dec. 3}&\text { Borrowed } \$ 10,000 \text { from Custer Bank on a long-term note payable. }\
\hline\text{Dec. 3}&\text { Sold merchandise for } \$ 7,200 \text { on credit to the Amherst Co., terms } 2 / 10, \mathrm{n} / 30 \text {. Invoice }\
&\text { no. } 1458 \text {. Cost of the merchandise sold is } \$ 4,000\
\hline\text{Dec. 5}&\text { Received the amount due from the Two Rivers Co. from the sale on December } 1 .\
\hline\text{Dec. 6}&\text { Sold merchandise on credit for } \$ 950 \text { to the Waupaca Co., terms } 2 / 10, n / 30 \text {. Invoice }\
&\text { No. } 1459 .\
\hline\text{Dec. 6}&\text { Received the amount due from the Berlin Co. from the sale on December } 1 .\
\hline
\end{array}\] 
a.Use the sales journal and the cash receipts journal to record these transactions
b.Prepare a schedule of accounts receivable.There were no accounts receivable at December 1.
 $$\begin{array}{l}
\mathbf { Sales~ Journal }\
\begin{array} { | l | l | l | l | l | } 
\hline \text { Date } & \begin{array} { l } 
\text { Account  } \
\text { Debited }
\end{array} & \text { Invoice Number } & \text { PR } & \text { Accounts Receivable Dr. Sales Cr.  } \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline
\end{array}
\end{array}$$ 
 $$\begin{array}{l}
\mathbf { Cash~ Receipts ~Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l |} 
\hline \text { Date } & \begin{array} { l } 
\text { Account } \
\text { Credited }
\end{array} & \text { Explanation  } & \text { PR } & \begin{array} { l } 
\text { Cash } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Sales } \
\text { Discount }\
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Accounts } \
\text { Receivable }
\end{array} & \begin{array} { l } 
\text { Sales } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts Cr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

a.
 @#IMG-DLM&_TB6312_00_TB631

Question 17

The __________________ principle requires that an accounting information system conform to a company's activities,personnel,and structure and must adapt to a company's unique characteristics.

Accepted Answer

The answer of The __________________ principle requires that an accounting...

Question 18

In a typical sales journal,you would expect to see the following columns:

Accepted Answer

A)  Sales dr. 
B)  Sales cr. 
C)  Purchases dr. (if periodic method used). 
D)  Inventory dr. (if perpetual method used). 
E)  Cost of Goods Sold cr. (if perpetual used). 
A)  Sales dr. 
B)  Sales cr. 
C)  Purchases dr. (if periodic method used). 
D)  Inventory dr. (if perpetual method used). 
E)  Cost of Goods Sold cr. (if perpetual used).

Question 19

Source documents:

Accepted Answer

A)  Are input devices. 
B)  Provide the basic information processed by an accounting system. 
C)  Cannot be electronic files. 
D)  Store processed information for future use. 
E)  Provide systems that interpret, transform and summarize data. 
A)  Are input devices. 
B)  Provide the basic information processed by an accounting system. 
C)  Cannot be electronic files. 
D)  Store processed information for future use. 
E)  Provide systems that interpret, transform and summarize data.

Question 20

The accounts payable ledger is used for storing transactions data regarding individual customers.

Accepted Answer

A) True 
 B)False

Exam 25: Accounting With Special Journals

Input devices include:

______________________ provide the basic information processed by an accounting system and can include bank statements,billings to customers,and employee earnings records.

A __________________ journal is used to record and post transactions of similar type.

Accounting information processes are structured to eliminate the need for professional judgment.

A subsidiary ledger:

Outdoors Unlimited uses special journals to record its daily transactions.They use the perpetual inventory system.Shown below is its cash receipts journal and selected ledger accounts.Post the cash receipts journal to the appropriate ledger accounts.

The Asian segment of a multinational company had a segment return on assets of 60%.If the revenues and operating income of this segment were $17,000 million and $14,586 million,respectively,what is the segment's average total assets amount?

A business segment:

The purchases journal is used to record cash purchases of merchandise.

An accounts payable ledger is:

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

_______________________ are links among computers giving different users and different computers access to common databases and programs.

When a company uses special journals,the general journal is used for selected transactions and events including:

The __________________ principle requires that an accounting information system conform to a company's activities,personnel,and structure and must adapt to a company's unique characteristics.

In a typical sales journal,you would expect to see the following columns:

Source documents:

The accounts payable ledger is used for storing transactions data regarding individual customers.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments and International Operations

Accounting for Partnerships

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