Question 1

Using __________________ ledgers removes unnecessary details from the general ledger.

Accepted Answer

Subsidiary

Question 2

The __________________ principle requires that an accounting information system must be able to adapt to changes in the company,business environment and needs of decision makers.

Accepted Answer

Flexiblity

Question 3

Match between columns
                        Premises:  Global Company has designed their accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales and controlling costs
 Global Company's accounting information system has policies to ensure that financial statements will be reliable, assets are protected and relevant laws and regulations are complied with
 Global Company's accounting information system can be improved markedly for a cost of about $30,000,000. However, the incremental benefits from such improvements are not expected to outweigh this cost
 Global Company has world-wide operations that must handle several thousand different products, so the accounting information system is fairly complex, encompassing marketing and manufacturing
 Global Company has designed their accounting information system to be adaptable to changes in technology, the business environment, the needs of decision makers

Accepted Answer

The Answer of Flexibility and Compatibility and Control and Cost-benefit is...

Question 4

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Accepted Answer

A) True 
 B)False

Question 5

Special journals are designed in a manner that is best suited for each business,so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Accepted Answer

A) True 
 B)False

Question 6

A customer who had purchased $75,000 worth of merchandise on account returns 5% of this order to the seller because he is not satisfied with the quality of the goods.This transaction would be recorded in which journal if historically the seller has had very few returns of this nature?

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 7

Input devices are the means to make accounting information available to users.

Accepted Answer

A) True 
 B)False

Question 8

If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account,then the accounts are presumed to be correct.

Accepted Answer

A) True 
 B)False

Question 9

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Accepted Answer

A) True 
 B)False

Question 10

Under the perpetual inventory system,special journals are not required.

Accepted Answer

A) True 
 B)False

Question 11

Enterprise-resource planning software:

Accepted Answer

A) Refers to programs that help manage a company's vital operations 
B) Is another name for spreadsheet programs 
C) Uses batch processing of business information 
D) Is substantially declining in use 
E) Is another name for database programs 
A) Refers to programs that help manage a company's vital operations 
B) Is another name for spreadsheet programs 
C) Uses batch processing of business information 
D) Is substantially declining in use 
E) Is another name for database programs

Question 12

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 13

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Accepted Answer

A) True 
 B)False

Question 14

Computer hard drive

Accepted Answer

A)   Input devices 
B)   Information storage 
C)  Information processor 
D)  Output devices 
E)  Source document 
A)   Input devices 
B)   Information storage 
C)  Information processor 
D)  Output devices 
E)  Source document

Question 15

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 16

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

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.

Accepted Answer

None

Question 19

Match between columns
                        Premises:  Paid a utility bill for $3,400 cash
 Purchased $1,590 of store supplies on account
 Purchased a display rack on account for $4,700
 Paid $65,000 cash for wages and salaries
 Borrowed $5,000 cash from the bank
 Returned defective inventory purchased on account, $2,900
 A customer returned a $250 item purchased on account
 Purchased merchandise on account, $2,700
 Recorded cash sales of $14,700
 Recorded depreciation on store equipment of $4,000

Accepted Answer

The Answer of Cash Receipts Journal and Cash Disbursements Journal is...

Question 20

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.
 \(\begin{array}{|l|l|}
\hline\text { May } 2 & \begin{array}{l}
\text { Purchased } \$ 25,000 \text { of merchandise inventory on credit from the Sioux City Company, terms } \
2 / 10, n / 30 . \text { Invoice dated May } 1 .
\end{array} \
\hline \text { May 3 } & \begin{array}{l}
\text { Purchased } \$ 12,000 \text { of merchandise inventory on credit from the Wichita Company, terms } \
2 / 10, n / 30 . \text { Invoice dated May } 2 .
\end{array} \
\hline \text { May 3 } & \text { Purchased } \$ 3,000 \text { of office supplies for cash from Bettendorf Co. Check no. } 1267 . \
\hline \text { May 4 } & \begin{array}{l}
\text { Purchased } \$ 36,000 \text { of office equipment on credit from Office Outfitters, terms n/60. Invoice } \
\text { dated May 3. }
\end{array} \
\hline \text { May 6 } & \begin{array}{l}
\text { Paid the amount due for the merchandise purchased from Sioux City Company. Check no. } \
1268 .
\end{array} \
\hline \text { May 6 } & \begin{array}{l}
\text { Purchased } \$ 14,500 \text { of merchandise inventory for cash from the Davenport Co. Check no. } \
\text { 1269. }
\end{array} \
\hline
\end{array}\)
 
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.

Accepted Answer

None

Using __________________ ledgers removes unnecessary details from the general ledger.

The __________________ principle requires that an accounting information system must be able to adapt to changes in the company,business environment and needs of decision makers.

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Special journals are designed in a manner that is best suited for each business,so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

A customer who had purchased $75,000 worth of merchandise on account returns 5% of this order to the seller because he is not satisfied with the quality of the goods.This transaction would be recorded in which journal if historically the seller has had very few returns of this nature?

Input devices are the means to make accounting information available to users.

If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account,then the accounts are presumed to be correct.

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Under the perpetual inventory system,special journals are not required.

Enterprise-resource planning software:

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

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Computer hard drive

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?

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

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

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 16: Reporting and Preparing Special Journals

Using __________________ ledgers removes unnecessary details from the general ledger.

The __________________ principle requires that an accounting information system must be able to adapt to changes in the company,business environment and needs of decision makers.

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Special journals are designed in a manner that is best suited for each business,so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

A customer who had purchased $75,000 worth of merchandise on account returns 5% of this order to the seller because he is not satisfied with the quality of the goods.This transaction would be recorded in which journal if historically the seller has had very few returns of this nature?

Input devices are the means to make accounting information available to users.

If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account,then the accounts are presumed to be correct.

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Under the perpetual inventory system,special journals are not required.

Enterprise-resource planning software:

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

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Computer hard drive

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?

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

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

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Filters