Question 1

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system, th

Question 3

Williams Company began business on May 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.
  
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

The answer of Williams Company began business on May 1....

Question 4

_____________________ are systems that interpret, transform and summarize information for use in Analysis and reporting.

Accepted Answer

Informatio

Question 5

The Asian segment of a multi-national company had a segment return on assets of 60%. If the revenues and operating income of this segment were $17,000 million and $14,586 million, respectively, what is the segment's average total assets amount?

Accepted Answer

A)  $24,310 million 
B)  $28,333 million 
C)  $52,643 million 
D)  $10,200 million 
E)  $8,751 million 
A)  $24,310 million 
B)  $28,333 million 
C)  $52,643 million 
D)  $10,200 million 
E)  $8,751 million

Question 6

Most transactions for merchandising businesses fall into four groups: sales on credit, purchases on credit, cash receipts and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 7

An accounts receivable ledger is:

Accepted Answer

A)  A subsidiary ledger that contains an account for each credit customer 
B)  A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding 
C)  A book of original entry that is designed and used for recording only a specified type of transaction 
D)  The ledger that contains the financial statement accounts of a business 
E)  A subsidiary ledger that contains a separate account for each creditor (supplier) to the company 
A)  A subsidiary ledger that contains an account for each credit customer 
B)  A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding 
C)  A book of original entry that is designed and used for recording only a specified type of transaction 
D)  The ledger that contains the financial statement accounts of a business 
E)  A subsidiary ledger that contains a separate account for each creditor (supplier) to the company

Question 8

A subsidiary ledger:

Accepted Answer

A)  Includes transactions not covered by special journals 
B)  Is a listing of all of the accounts of a business 
C)  Is a listing of individual accounts with a common characteristic 
D)  Is also called a general ledger 
E)  Is also called a special journal 
A)  Includes transactions not covered by special journals 
B)  Is a listing of all of the accounts of a business 
C)  Is a listing of individual accounts with a common characteristic 
D)  Is also called a general ledger 
E)  Is also called a special journal

Question 9

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

Accepted Answer

A)  Accounts payable dr. 
B)  Sales discounts dr. 
C)  Accounts receivable dr. 
D)  Inventory dr. (if perpetual method used) 
E)  Cost of Goods Sold dr. (if perpetual method used) 
A)  Accounts payable dr. 
B)  Sales discounts dr. 
C)  Accounts receivable dr. 
D)  Inventory dr. (if perpetual method used) 
E)  Cost of Goods Sold dr. (if perpetual method used)

Question 10

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

Accepted Answer

A)  Sales dr. 
B)  Sales discounts cr. 
C)  Accounts receivable dr. 
D)  Inventory dr. (if perpetual method used) 
E)  Cost of Goods Sold dr. (if perpetual method used) 
A)  Sales dr. 
B)  Sales discounts cr. 
C)  Accounts receivable dr. 
D)  Inventory dr. (if perpetual method used) 
E)  Cost of Goods Sold dr. (if perpetual method used)

Question 11

An advantage of online processing is up-to-date databases.

Accepted Answer

A) True 
 B)False

Question 12

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale that is used in the perpetual system but not in the periodic.

Accepted Answer

Cost of goods sold,

Question 13

The cost-benefit principle affects all other accounting system principles.

Accepted Answer

A) True 
 B)False

Question 14

The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

Accepted Answer

Segment re

Question 15

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 16

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 17

An approach that enters and processes data as soon as source documents are available is called:

Accepted Answer

A)  Date storage 
B)  Batch processing 
C)  Online processing 
D)  Computer programming 
E)  Web communications 
A)  Date storage 
B)  Batch processing 
C)  Online processing 
D)  Computer programming 
E)  Web communications

Question 18

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 19

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 20

______________________ provide the basic information processed by an accounting system and can include bank statements, billings to customers and employee earnings records.

Accepted Answer

The answer of ______________________ provide the basic information processed by...

Exam 27 Appendix : Accounting With Special Journals

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

_____________________ are systems that interpret, transform and summarize information for use in Analysis and reporting.

The Asian segment of a multi-national company had a segment return on assets of 60%. If the revenues and operating income of this segment were $17,000 million and $14,586 million, respectively, what is the segment's average total assets amount?

Most transactions for merchandising businesses fall into four groups: sales on credit, purchases on credit, cash receipts and cash disbursements.

An accounts receivable ledger is:

A subsidiary ledger:

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

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

An advantage of online processing is up-to-date databases.

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale that is used in the perpetual system but not in the periodic.

The cost-benefit principle affects all other accounting system principles.

The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

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

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.

An approach that enters and processes data as soon as source documents are available is called:

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

Enterprise-resource planning software:

______________________ provide the basic information processed by an accounting system and can include bank statements, billings to customers and employee earnings records.

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

Filters

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________ and for each sale that is used in the perpetual system but not in the periodic.