Exam 27 Appendix : Accounting With Special Journals

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?

The Accounts Payable account in the general ledger is:

The five fundamental principles of accounting information systems are:

The basic components of an accounting information system include all but which of the following?

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

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.

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 company returned merchandise to a supplier because it did not meet their specifications. This transaction would be recorded in which of the following journals?

Assume that a company using a purchases journal made an error in totaling the journal's columns. The error should be discovered:

Posting debits from the Sales journal to Accounts Receivable twice - once to the general ledger account Accounts Receivable and once to the customer's subsidiary account - violates the accounting equation of debits equal credits.

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

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

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

When the sales journal's column for accounts receivable and sales is totaled at the end of the month, its total is:

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts.

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

The Mid-west segment of a domestic company had a segment return on assets of 13%. If the revenues and operating income of this segment were $4 million and $1 million, respectively, what is the segment's average total assets amount?

The accounts receivable ledger:

The segment return on assets:

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