Exam 27 Appendix : Accounting With Special Journals

The compatibility principle requires that an accounting system report useful, understandable, timely and pertinent information for effective decision making.

A customer who had purchased $60,000 worth of merchandise on account returns 10% of this order to the seller because she is not satisfied with the quality of the goods. How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

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

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

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.

A __________________ is an all-purpose journal that can record any transaction.

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

A company using the periodic inventory system does not record the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

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

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

A sales journal is used to record cash sales.

Output devices include all of the following except:

What are the five basic components of accounting information systems?

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

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.

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.

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

A columnar journal is any journal with only one column.

A customer who had purchased $25,000 worth of merchandise on account returns 20% of this order to the seller because he is not satisfied with the quality of the goods. How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

The purchases journal is identical under both the periodic and the perpetual inventory systems.