Question 1

A business segment is a part of a company that is separately identified by its products or services or by the geographic market it serves.

Accepted Answer

A) True 
 B)False

Question 2

The following special journal is taken from a merchandising company that uses the perpetual inventory system:
   
a.What is the name of the journal shown above?
b.Write an explanation for each entry in this journal.
c.What do the numbers in parentheses at the bottom of the journal indicate?

Accepted Answer

a.This is a cash receipts journal (perpe

Question 3

With advanced technology there is no need to trace to its source information that has been entered into an accounting information system.

Accepted Answer

A) True 
 B)False

Question 4

The Consumer Products segment of a company had a segment return on assets of 53%.If the revenues and operating income of this segment were $872,630 million and $517,916 million,respectively,what is the segment's average total assets amount?

Accepted Answer

A)  $462,493 million 
B)  $977,200 million 
C)  $695,273 million 
D)  $274,495 million 
E)  $736,989 million 
A)  $462,493 million 
B)  $977,200 million 
C)  $695,273 million 
D)  $274,495 million 
E)  $736,989 million

Question 5

The Sun Company completed the following sales and cash receipts transactions during the first week of December.The Sun Company uses the perpetual inventory system.
SHAPE \* MERGEFORMAT
 $$\begin{array}{l}
\text { Sales Journal }\
\begin{array} { | l | l | l | l | l | l |} 
\hline \text { Date } & \text { Account Debited } & \begin{array} { l } 
\text { Invoice } \
\text { Number }
\end{array} & \text { PR } & \begin{array} { l } 
\text { Accounts Receivable Dr. } \
\text { Sales Cr. }
\end{array} & \begin{array} { l } 
\text { Cost of Goods Sold Dr. } \
\text { Inventory Cr. }
\end{array} \
\hline & & & & & \
\hline & & & & & \
\hline & & & & & \
\hline & & & & & \
\hline
\end{array}
\end{array}$$ 
 \[
\begin{array}{ll}
\text {Dec. 1.}&\text {Sold merchandise for \$ 6,700  on credit to the Two Rivers Co., terms 2 / 10,} \mathrm{n} / 30 .\
&\text {Invoice no. 1455. Cost of the merchandise sold is \$ 3,600 .}\
\text {Dec. 1}&\text {Sold merchandise for \$ 3,400  on credit to the Berlin Co., terms  2 / 10, n / 30 . Invoice}\
&\text {no. 1456 . Cost of the merchandise sold is  \$ 1,800 .}\
\text {Dec 2}&\text {Sold merchandise for \$ 590 for cash to the Ellison Co. Invoice no. 1457. Cost of}\
&\text {the merchandise sold is  \$ 300 .}\
\text {Dec. 3}&\text {Borrowed  \$ 10,000  from Custer Bank on a long-term note payable.}\
\text {Dec. 3}&\text {Sold merchandise for  \$ 7,200  on credit to the Amherst Co., terms  2 / 10,} \mathrm{n} / 30 .\
&\text {Invoice no. 1458. Cost of the merchandise sold is  \$ 4,000 .}\
\text {Dec. 5}&\text {Received the amount due from the Two Rivers Co. from the sale on December 1.}\
\text {Dec. 6}&\text {Sold merchandise on credit for \$ 950  to the Waupaca Co., terms  2 / 10,} \mathrm{n} / 30 . \text{Invoice}\
&\text {no. 1459 . Cost of the merchandise is  \$ 500 .}\
\text {Dec. 6}&\text {Received the amount due from the Berlin Co. from the sale on December 1 .}
\end{array}
\] 
   
a.Use the sales journal and the cash receipts journal to record these transactions.
b.Prepare a schedule of accounts receivable.There were no account receivables at December 1.
 $$\begin{array}{l}
\text { Cash Receipts Journal }\
\begin{array} { |l|l|l|l|l|l|l|l|l|l| } 
\hline \text { Date } & \begin{array} { l } 
\text { Account } \
\text { Credited }
\end{array} & \text { Explanation } &\text { PR } & \begin{array} { l } 
\text { Cash } \
\text { Dr. }
\end{array} & \begin{array} { l } 
\text { Sales } \
\text { Discount }\
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Accounts } \
\text { Receivable } \
\text { Dr. }
\end{array} 
&\begin{array} { l } 
\text { Sales } \
\text { Cr. }
\end{array} & \begin{array} { l } 
\text { Other } \
\text { Accounts } \
\text { Cr. }
&
\end{array} & \begin{array} { l } 
\text { Cost of } \
\text { Goods } \
\text { Sold Dr. }\
\text { Inventory  }\
\text { Dr. }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

a.
 @#IMG-DLM&_TB6312_00_TB631

Question 6

____________________ are the means to take information out of an accounting system and make it available to users.

Accepted Answer

The answer of ____________________ are the means to take information...

Question 7

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Accepted Answer

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

Question 8

A book of original entry that is used to record and post transactions of a similar type is a:

Accepted Answer

A)  Schedule 
B)  Columnar ledger 
C)  Special journal 
D)  General journal 
E)  Subsidiary ledger 
A)  Schedule 
B)  Columnar ledger 
C)  Special journal 
D)  General journal 
E)  Subsidiary ledger

Question 9

The special journals of many accounting systems include all the following except:

Accepted Answer

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

Question 10

___________________ processing enters and processes data as soon as source documents are available.

Accepted Answer

The answer of ___________________ processing enters and processes data as...

Question 11

Internal control procedures do not include:

Accepted Answer

A)  Procedures to ensure reliable financial reports. 
B)  Safeguards to protect company assets. 
C)  Methods to achieve compliance with laws and regulation. 
D)  Procedures to guarantee against fraud. 
E)  Policies to direct operations toward common goals. 
A)  Procedures to ensure reliable financial reports. 
B)  Safeguards to protect company assets. 
C)  Methods to achieve compliance with laws and regulation. 
D)  Procedures to guarantee against fraud. 
E)  Policies to direct operations toward common goals.

Question 12

Enterprise resource planning software is primarily used for recording journal entries.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A company entered into the following transactions.Match each transaction with the appropriate journal.The journals can be used one time,zero times,or more than one time if necessary.
A. Cash receipts journal
B. Cash disbursements journal
C. Sales journal
D. Purchases journal
E. General journal
 $\underline{\quad\quad\quad\quad\quad}$1. Paid a utility bill for $ \$ 3,400 $ cash.
$\underline{\quad\quad\quad\quad\quad}$2. Purchased $ \$ 1,590 $ of store supplies on account.
$\underline{\quad\quad\quad\quad\quad}$3. Purchased a display rack on account for $ \$ 4,700 $.
$\underline{\quad\quad\quad\quad\quad}$4. Paid $ \$ 65,000 $ cash for wages and salaries.
$\underline{\quad\quad\quad\quad\quad}$5. Borrowed $ \$ 5,000 $ cash from the bank.
$\underline{\quad\quad\quad\quad\quad}$6. Returned defective inventory purchased on account, $ \$ 2,900 $
$\underline{\quad\quad\quad\quad\quad}$7. A customer returned a $ \$ 250 $ item purchased on account
$\underline{\quad\quad\quad\quad\quad}$8. Purchased merchandise on account, $ \$ 2,700 $.
$\underline{\quad\quad\quad\quad\quad}$9. Recorded cash sales of $ \$ 14,700 $.
$\underline{\quad\quad\quad\quad\quad}$10. Recorded depreciation on store equipment of $ \$ 4,000 $.

Accepted Answer

(1)B (2)D (3)D (4)B

Question 15

External users of financial statements are generally uninterested in segment information to understand a company's business activities.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Equipment,inventory,and investments can each have its own subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 18

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

Accepted Answer

The two-step procedure begins after the

Question 19

Using __________________ ledgers removes unnecessary details from the general ledger.

Accepted Answer

The answer of Using __________________ ledgers removes unnecessary details from...

Question 20

The accounts payable ledger has a controlling account in the general ledger and a separate subsidiary account for each creditor in the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Exam 25: Accounting With Special Journals

A business segment is a part of a company that is separately identified by its products or services or by the geographic market it serves.

The following special journal is taken from a merchandising company that uses the perpetual inventory system: a.What is the name of the journal shown above? b.Write an explanation for each entry in this journal. c.What do the numbers in parentheses at the bottom of the journal indicate?

With advanced technology there is no need to trace to its source information that has been entered into an accounting information system.

The Consumer Products segment of a company had a segment return on assets of 53%.If the revenues and operating income of this segment were $872,630 million and $517,916 million,respectively,what is the segment's average total assets amount?

____________________ are the means to take information out of an accounting system and make it available to users.

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

A book of original entry that is used to record and post transactions of a similar type is a:

The special journals of many accounting systems include all the following except:

___________________ processing enters and processes data as soon as source documents are available.

Internal control procedures do not include:

Enterprise resource planning software is primarily used for recording journal entries.

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

External users of financial statements are generally uninterested in segment information to understand a company's business activities.

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

Equipment,inventory,and investments can each have its own subsidiary ledger.

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

Using __________________ ledgers removes unnecessary details from the general ledger.

The accounts payable ledger has a controlling account in the general ledger and a separate subsidiary account for each creditor in the accounts payable ledger.

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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