Question 1

A company borrowed money from the bank and signed a long-term note payable.This transaction would be recorded in which of the following journals?

Accepted Answer

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

Question 2

To check for accuracy after posting: first a trial balance is completed,then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  Accounts payable dr. 
B)  Purchase discounts cr. 
C)  Accounts receivable cr. 
D)  Inventory dr. (if perpetual method used). 
E)  Cost of Goods Sold dr. (if perpetual method used). 
A)  Accounts payable dr. 
B)  Purchase discounts cr. 
C)  Accounts receivable cr. 
D)  Inventory dr. (if perpetual method used). 
E)  Cost of Goods Sold dr. (if perpetual method used).

Question 4

Most companies use batch processing instead of online processing because batch processing requires continual updating of databases.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system,the

Question 6

Most transactions for merchandising businesses fall into four groups: sales on credit,purchases on credit,cash receipts,and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 7

Assume that a company uses a sales journal,a purchases journal,a cash receipts journal,a cash disbursements journal,and a general journal.A sales return for credit on account would be recorded in the:

Accepted Answer

A)  Sales journal 
B)  General journal 
C)  Cash receipts journal 
D)  Accounts receivable ledger 
E)  Cash disbursements journal 
A)  Sales journal 
B)  General journal 
C)  Cash receipts journal 
D)  Accounts receivable ledger 
E)  Cash disbursements journal

Question 8

A company's Southwest segment had revenues of $12 million,operating income of $2 million,and average total assets of $3 million.The Southwest segment return on assets is:

Accepted Answer

A)  42.85% 
B)  41.67% 
C)  25.00% 
D)  16.67% 
E)  66.67% 
A)  42.85% 
B)  41.67% 
C)  25.00% 
D)  16.67% 
E)  66.67%

Question 9

A _______________________________________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

Accepted Answer

schedule o

Question 10

Match the following terms with the appropriate definition(s):
 A. Accounting information system
B. Business segment
C. Cash receipts journal
D. Control principle
E. Relevance principle
F. Enterprise resource planning
G. Cash disbursements journal
H. Computer network
I. Information processor 
 $\underline{\quad\quad\quad\quad\quad}$1. An information system principle requiring that an accounting information system and marnagers in controlling and monitoring business activities.
$\underline{\quad\quad\quad\quad\quad}$2. A list of each customer from the accounts receivable ledger with their balances and the total.
$\underline{\quad\quad\quad\quad\quad}$3. The special journal that is used to record all payments of cash.
$\underline{\quad\quad\quad\quad\quad}$4. The people, records, methods, and equipment that collect and process data from trarnsactions and events, orgarize them in useful forms, and commnunicate results to decision makers.
$\underline{\quad\quad\quad\quad\quad}$5. Links among computers giving different users and different computers access to common databases and programs.
$\underline{\quad\quad\quad\quad\quad}$6. A part of a company that can be separately identified by the products or services that it provides or by the geographic market that it serves.
$\underline{\quad\quad\quad\quad\quad}$7 . The component of an accounting system that interprets, trarsfoms, and summarizes information for use in analysis and reporting.
$\underline{\quad\quad\quad\quad\quad}$8. Programs that manage a company's vital operations which range from order-taking to manufacturing to accounting.
$\underline{\quad\quad\quad\quad\quad}$9. The special journal used to record all receipts of cash.
$\underline{\quad\quad\quad\quad\quad}$10. An information system principle requiring that an accounting system report useful, understandable, timely, and pertinent information for decision making

Accepted Answer

(1)D (2)J (3)G (4)A

Question 11

A typical sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Question 12

Due to electronic files and web communication,source documents are no longer required.

Accepted Answer

A) True 
 B)False

Question 13

Williams Company began business on May 1.They use the periodic inventory method.The following transactions involving purchases and cash disbursements occurred during the first week of May:
 $$
\begin{array}{|l|l|}
\hline\text{May 2}&\text{Purchased  \$ 25,000  of merchandise inventory on credit from the Sioux City Company,}\
&\text{terms  2/10,}~ \text{n/30 . Invoice dated May 1 .}\
\hline\text{May 3}&\text{Purchased  \$ 12,000  of merchandise inventory on credit from the Wichita Company,}\
&\text{ terms 2/10,}~\mathrm{n} / 30 . \text{Invoice dated May 2 .}\
\hline\text{May 3}&\text{Purchased  \$ 3,000  of office supplies for cash from Bettendorf Co. Check no. 1267.}\
\hline\text{May 4}&\text{Purchased \$ 36,000  of office equipment on credit from Office Outfitters, terms  n/60 .}\
&\text{Invoice dated May 3.}\
\hline\text{May 6}&\text{Paid the amount due for the merchandise purchased from Sioux City Company.}\
&\text{Check no. 1268 .}\
\hline\text{May 6}&\text{Purchased \$ 14,500  of merchandise inventory for cash from the Davenport Co. Check}\
&\text{no. 1269}\
\hline
\end{array}
$$ 
a.Use the purchases journal and the cash disbursements journal to record these transactions
b.Prepare a schedule of accounts payable as of May 7.There was no accounts payable on May 1.
 $$\begin{array}{l}
\mathbf{ Purchases~ Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \text { Account } & \begin{array} { l } 
\text { Date of } \
\text { Invoice }
\end{array} & \text { Terms } & \text { PR } & \begin{array} { l } 
\text { Accounts } \
\text { Payable Cr. }
\end{array} & \begin{array} { l } 
\text { Purchases } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Office }\
\text { Supplies } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Other }\
\text { Accounts } \
\text { Dr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$ 
 $$\begin{array}{l}
\text { Cash Disbursements Journal }\
\begin{array} { | l | l | l | l | l | l | l | l | l | } 
\hline \text { Date } & \begin{array} { l } 
\text { Ck. } \
\text { No. }
\end{array} & \text { Payee } & \begin{array} { l } 
\text { Account } \
\text { Debited }
\end{array} & \text { PR } & \begin{array} { l } 
\text { Cash } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Purchase } \
\text { Discount } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Accounts } \
\text { Payable } \
\text { Dr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

a.
 @#IMG-DLM&_TB6312_00_TB631

Question 14

Individual transactions in the sales journal are posted regularly to customers' accounts in the ________________________________________.

Accepted Answer

accounts r

Question 15

Output devices include all of the following except:

Accepted Answer

A)  Printers 
B)  Monitors 
C)  LCD projectors 
D)  Web communication 
E)  General journals 
A)  Printers 
B)  Monitors 
C)  LCD projectors 
D)  Web communication 
E)  General journals

Question 16

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Accepted Answer

A) True 
 B)False

Question 17

After posting is completed,there may be an error if:

Accepted Answer

A)  The sum of the customer account balances does not equal the total in the sales journal. 
B)  The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
C)  The sum of the customer account balances does not equal the Accounts Receivable controlling account balance. 
D)  The balance in the sales journal does not equal the Accounts Receivable account balance. 
E)  The sum of the accounts receivable ledger does not equal the balance in the sales journal. 
A)  The sum of the customer account balances does not equal the total in the sales journal. 
B)  The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
C)  The sum of the customer account balances does not equal the Accounts Receivable controlling account balance. 
D)  The balance in the sales journal does not equal the Accounts Receivable account balance. 
E)  The sum of the accounts receivable ledger does not equal the balance in the sales journal.

Question 18

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

Accepted Answer

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

Question 19

Subsidiary ledgers provide all the following benefits except:

Accepted Answer

A)  Remove excessive detail from the general ledger. 
B)  Provide up-to-date information on customer or other specific account balances. 
C)  Aid in error identification for individual accounts. 
D)  Help with division of labor (recordkeeping tasks). 
E)  Allow users to record any transactions. 
A)  Remove excessive detail from the general ledger. 
B)  Provide up-to-date information on customer or other specific account balances. 
C)  Aid in error identification for individual accounts. 
D)  Help with division of labor (recordkeeping tasks). 
E)  Allow users to record any transactions.

Question 20

Discuss how technology-based information systems affect accounting.

Accepted Answer

Technology-based information systems hav

Exam 25: Accounting With Special Journals

A company borrowed money from the bank and signed a long-term note payable.This transaction would be recorded in which of the following journals?

To check for accuracy after posting: first a trial balance is completed,then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

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

Most companies use batch processing instead of online processing because batch processing requires continual updating of databases.

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Most transactions for merchandising businesses fall into four groups: sales on credit,purchases on credit,cash receipts,and cash disbursements.

Assume that a company uses a sales journal,a purchases journal,a cash receipts journal,a cash disbursements journal,and a general journal.A sales return for credit on account would be recorded in the:

A company's Southwest segment had revenues of $12 million,operating income of $2 million,and average total assets of $3 million.The Southwest segment return on assets is:

A _______________________________________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

A typical sales journal is used to record cash sales.

Due to electronic files and web communication,source documents are no longer required.

Individual transactions in the sales journal are posted regularly to customers' accounts in the ________________________________________.

Output devices include all of the following except:

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

After posting is completed,there may be an error if:

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

Subsidiary ledgers provide all the following benefits except:

Discuss how technology-based information systems affect accounting.

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

Filters