Question 1

Source documents:

Accepted Answer

A)  Are input devices 
B)  Provide the basic information processed by an accounting system 
C)  Cannot be electronic files 
D)  Store processed information for future use 
E)  Provide systems that interpret, transform and summarize data 
A)  Are input devices 
B)  Provide the basic information processed by an accounting system 
C)  Cannot be electronic files 
D)  Store processed information for future use 
E)  Provide systems that interpret, transform and summarize data

Question 2

A business segment:

Accepted Answer

A)  Requires only internal reporting 
B)  Is a part of a company that is separately identified by its products, services or geographic market 
C)  Requires special journals 
D)  Requires subsidiary ledgers 
E)  Cannot report its results separately 
A)  Requires only internal reporting 
B)  Is a part of a company that is separately identified by its products, services or geographic market 
C)  Requires special journals 
D)  Requires subsidiary ledgers 
E)  Cannot report its results separately

Question 3

The main difference in the sales journal under the perpetual and periodic inventory system is:

Accepted Answer

A)  The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic 
B)  The sales tax receivable column that is used under the perpetual system but not the periodic 
C)  The sales tax payable column that is used under the perpetual system but not the periodic 
D)  The accounts receivable column that is used under the perpetual system but not the periodic 
E)  The column for recording cash that is used under the perpetual system but not the periodic 
A)  The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic 
B)  The sales tax receivable column that is used under the perpetual system but not the periodic 
C)  The sales tax payable column that is used under the perpetual system but not the periodic 
D)  The accounts receivable column that is used under the perpetual system but not the periodic 
E)  The column for recording cash that is used under the perpetual system but not the periodic

Question 4

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 5

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A company entered into the following transactions. For each transaction, indicate the appropriate journal in which it would be recorded.
 $\begin{array}{|l|l|}
\hline {\text { Transaction }} & \text { Record in Journal } \
\hline \text { 1. Borrowed cash from the bank } & \
\hline \text { 2. Purchased merchandise for cash } & \
\hline \text { 3. Paid cash to settle the utility bill } & \\hline \text { 4. Customer sent in cash to settle an account } & \
\text { receivable } & \
\hline \text { 5. Purchased merchandise on credit } & \\hline \text { 6. Recorded depreciation for the period } & \
\hline \text { 7. Sold merchandise on credit } & \
\hline \text { 8. Sold merchandise for cash } & \
\hline \text { 9. Bought store supplies for cash } & \
\hline \text { 10. Owner invested more cash in the business } & \
\hline
\end{array}$

Accepted Answer

The answer of A company entered into the following transactions....

Question 8

Information storage:

Accepted Answer

A)  Eliminates the need for professional judgment 
B)  Keeps data in a form accessible to information processors 
C)  Provides the basic information processed by an accounting system 
D)  Captures information from source documents 
E)  Is always in electronic format 
A)  Eliminates the need for professional judgment 
B)  Keeps data in a form accessible to information processors 
C)  Provides the basic information processed by an accounting system 
D)  Captures information from source documents 
E)  Is always in electronic format

Question 9

______________________ capture information from source documents and enable its transfer to the system's information processing component.

Accepted Answer

The answer of ______________________ capture information from source documents and...

Question 10

Segment information is often useful to investors for evaluating a company's profitability, risk and growth.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Accepted Answer

A) True 
 B)False

Question 13

What is the segment return on assets ratio? What is it used for?

Accepted Answer

The segment return on assets is segment

Question 14

When posting from special journals each debit and credit entry is entered as a separate amount.

Accepted Answer

A) True 
 B)False

Question 15

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system.
  
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

The answer of The Sun Company completed the following sales...

Question 16

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

Accepted Answer

The answer of _______________________ are links among computers giving different...

Question 17

A company records its transactions and events in four special journals and a general journal. The amount columns of these journals are numbered as follows:   
Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s) of the columns in which the debit(s) would appear in the column labeled "Debits" below and by inserting the number(s) of the columns in which the credits would appear in the column labeled "Credits" below.

Accepted Answer

The answer of A company records its transactions and events...

Question 18

Discuss how technology based information systems affect accounting.

Accepted Answer

Technology based information systems hav

Question 19

Accounting information processes are structured to eliminate the need for professional judgment.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

The answer of A ____________________ is a part of a...

Exam 27 Appendix : Accounting With Special Journals

Source documents:

A business segment:

The main difference in the sales journal under the perpetual and periodic inventory system is:

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

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Subsidiary ledgers provide all the following benefits except:

Information storage:

______________________ capture information from source documents and enable its transfer to the system's information processing component.

Segment information is often useful to investors for evaluating a company's profitability, risk and growth.

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

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

What is the segment return on assets ratio? What is it used for?

When posting from special journals each debit and credit entry is entered as a separate amount.

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

Discuss how technology based information systems affect accounting.

Accounting information processes are structured to eliminate the need for professional judgment.

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

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 and Analyzing Cash Flows

Analyzing Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Decentralization and Performance Evaluation

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Investments and International Operations

Accounting for Partnerships

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