Question 1

Which of the following is not an example of a module that can be found in most accounting software packages?

Accepted Answer

A)  Reports. 
B)  Sales. 
C)  Payroll. 
D)  All of these options are examples of modules within an accounting software package. 
A)  Reports. 
B)  Sales. 
C)  Payroll. 
D)  All of these options are examples of modules within an accounting software package. D

Question 2

A Discount received column could be found in which special journal?

Accepted Answer

A)  Cash receipts 
B)  Cash payments 
C)  Sales 
D)  Purchases 
A)  Cash receipts 
B)  Cash payments 
C)  Sales 
D)  Purchases B

Question 3

Which of the following is not a problem of computerised accounting systems?

Accepted Answer

A)  Computer viruses 
B)  Computer fraud 
C)  Power failures 
D)  Inability to network the systems 
A)  Computer viruses 
B)  Computer fraud 
C)  Power failures 
D)  Inability to network the systems D

Question 4

All the details of transactions between the entity and individual customers are found in the:

Accepted Answer

A)  accounts receivable subsidiary ledger. 
B)  accounts payable control account. 
C)  accounts payable subsidiary ledger. 
D)  sales ledger. 
A)  accounts receivable subsidiary ledger. 
B)  accounts payable control account. 
C)  accounts payable subsidiary ledger. 
D)  sales ledger.

Question 5

Barry is both a debtor and a creditor of Allen Ltd. At the end of the period Barry owes Allen Ltd $1400 while Allen Ltd owes him $800. Allen Ltd should record which journal entry to offset the amounts against each other?

Accepted Answer

A)  DR Accounts receivable $700; CR Accounts payable $700 
B)  DR Accounts receivable $2200; CR Accounts payable $2200 
C)  DR Accounts payable $800; CR Accounts receivable $800 
D)  DR Accounts payable $2200; CR Accounts receivable $2200 
A)  DR Accounts receivable $700; CR Accounts payable $700 
B)  DR Accounts receivable $2200; CR Accounts payable $2200 
C)  DR Accounts payable $800; CR Accounts receivable $800 
D)  DR Accounts payable $2200; CR Accounts receivable $2200

Question 6

Which of the following statements relating to electronic spreadsheets is incorrect?

Accepted Answer

A)  They can be used to analyse business data. 
B)  They can be used to develop business budgets. 
C)  They assist is determining 'what if' scenarios. 
D)  They are not used by accountants. 
A)  They can be used to analyse business data. 
B)  They can be used to develop business budgets. 
C)  They assist is determining 'what if' scenarios. 
D)  They are not used by accountants.

Question 7

A credit of $550 000, including 10% GST, was posted to the accounts payable control account on the last day of the month. This posting would most likely have come from which special journal?

Accepted Answer

A)  Purchases journal 
B)  Sales journal 
C)  Cash receipts journal 
D)  Cash payments journal 
A)  Purchases journal 
B)  Sales journal 
C)  Cash receipts journal 
D)  Cash payments journal

Question 8

Subsidiary ledgers in a manual accounting system have three main advantages. Which of the following is not one of those advantages?

Accepted Answer

A)  They dramatically reduce the occurrence of bad debts. 
B)  They remove a mass of detail from the general ledger. 
C)  They allow a division of labour in maintaining the general and subsidiary ledgers. 
D)  They improve internal control through the reconciliation of the control account with the subsidiary ledger. 
A)  They dramatically reduce the occurrence of bad debts. 
B)  They remove a mass of detail from the general ledger. 
C)  They allow a division of labour in maintaining the general and subsidiary ledgers. 
D)  They improve internal control through the reconciliation of the control account with the subsidiary ledger.

Question 9

Which of the following transactions would not be recorded in the cash receipts journal?

Accepted Answer

A)  Cash refund to a customer for goods returned by them. 
B)  Goods sold for cash. 
C)  Second hand furniture sold for cash. 
D)  Borrowings received from the bank. 
A)  Cash refund to a customer for goods returned by them. 
B)  Goods sold for cash. 
C)  Second hand furniture sold for cash. 
D)  Borrowings received from the bank.

Question 10

Which of the following is not an advantage of a computerised accounting system compared to a manual system?

Accepted Answer

A)  Reduced processing costs 
B)  More timely reports 
C)  Greater possibility of a catastrophic systems failure 
D)  Faster response time to wide range of queries 
A)  Reduced processing costs 
B)  More timely reports 
C)  Greater possibility of a catastrophic systems failure 
D)  Faster response time to wide range of queries

Question 11

Which of these does not normally provide an input into an accounting system?

Accepted Answer

A)  Bank deposit slip 
B)  Managerial report 
C)  Cheque butt 
D)  Supplier invoice 
A)  Bank deposit slip 
B)  Managerial report 
C)  Cheque butt 
D)  Supplier invoice

Question 12

Which of the following statements is correct?

Accepted Answer

A)  A subsidiary ledger requires double entry accounting. 
B)  A business with three debit customers would need to set up an accounts payable subsidiary ledger. 
C)  A manual accounting system that has both a control account and a subsidiary ledger for creditors requires transactions for creditors to be recorded twice. 
D)  Every business must have special journals to record transactions for returns of goods. 
A)  A subsidiary ledger requires double entry accounting. 
B)  A business with three debit customers would need to set up an accounts payable subsidiary ledger. 
C)  A manual accounting system that has both a control account and a subsidiary ledger for creditors requires transactions for creditors to be recorded twice. 
D)  Every business must have special journals to record transactions for returns of goods.

Question 13

A column for discount allowed could be found in which special journal?

Accepted Answer

A)  General 
B)  Cash payments 
C)  Cash receipts 
D)  Sales 
A)  General 
B)  Cash payments 
C)  Cash receipts 
D)  Sales

Question 14

The main reason a business may not fully realise the advantages of a computerised accounting system is due to:

Accepted Answer

A)  lack of back-ups in instances of power failures. 
B)  undetected viruses from low security. 
C)  unauthorised access by hackers. 
D)  failed systems due to problems with the hardware, software or personnel. 
A)  lack of back-ups in instances of power failures. 
B)  undetected viruses from low security. 
C)  unauthorised access by hackers. 
D)  failed systems due to problems with the hardware, software or personnel.

Question 15

Which of the following is not a general ledger software package?

Accepted Answer

A)  Excel 
B)  Reckon 
C)  Xero 
D)  MYOB 
A)  Excel 
B)  Reckon 
C)  Xero 
D)  MYOB

Question 16

Which of the following transactions would be recorded in the cash payments journal?

Accepted Answer

A)  Payment of telephone account 
B)  Purchase of goods on credit 
C)  Rent accrued at the end of the accounting period 
D)  Personal expenses paid from owner's private cheque book 
A)  Payment of telephone account 
B)  Purchase of goods on credit 
C)  Rent accrued at the end of the accounting period 
D)  Personal expenses paid from owner's private cheque book

Question 17

Which of the following transactions could not result in a credit balance in a debtor's account?

Accepted Answer

A)  Receive a deposit from a debtor for goods ordered. 
B)  Customer returns a faulty product after they have paid the account in full. 
C)  Customer pays their account after the debt had been written off as a bad debt. 
D)  Goods are sold on credit with payment due in the next accounting period. 
A)  Receive a deposit from a debtor for goods ordered. 
B)  Customer returns a faulty product after they have paid the account in full. 
C)  Customer pays their account after the debt had been written off as a bad debt. 
D)  Goods are sold on credit with payment due in the next accounting period.

Question 18

The accounts receivable subsidiary ledger shows the following balances on 31 January 2019. The balance in the accounts receivable control account at this date is:
(Assume recording and balancing of accounts payable records are up to date.)
$\bullet$Barry Ltd $2 875
$\bullet$Roberts Ltd $8 113
$\bullet$Symes Ltd $3 499

Accepted Answer

A)  $0 
B)  $14 487 Dr 
C)  $14 487 Cr 
D)  Cannot be calculated from the information given 
A)  $0 
B)  $14 487 Dr 
C)  $14 487 Cr 
D)  Cannot be calculated from the information given

Question 19

A general ledger account that summarises the detail maintained in a subsidiary ledger is called a:

Accepted Answer

A)  key account. 
B)  summary account. 
C)  control account. 
D)  master account. 
A)  key account. 
B)  summary account. 
C)  control account. 
D)  master account.

Question 20

Which of the following is not an important consideration in the development of an accounting system?

Accepted Answer

A)  Comparability with other systems used within the industry. 
B)  Compatibility with the organisation's other systems 
C)  Adaptability 
D)  Cost versus benefits 
A)  Comparability with other systems used within the industry. 
B)  Compatibility with the organisation's other systems 
C)  Adaptability 
D)  Cost versus benefits

Exam 7: Accounting for Systems

Which of the following is not an example of a module that can be found in most accounting software packages?

A Discount received column could be found in which special journal?

Which of the following is not a problem of computerised accounting systems?

All the details of transactions between the entity and individual customers are found in the:

Barry is both a debtor and a creditor of Allen Ltd. At the end of the period Barry owes Allen Ltd $1400 while Allen Ltd owes him $800. Allen Ltd should record which journal entry to offset the amounts against each other?

Which of the following statements relating to electronic spreadsheets is incorrect?

A credit of $550 000, including 10% GST, was posted to the accounts payable control account on the last day of the month. This posting would most likely have come from which special journal?

Subsidiary ledgers in a manual accounting system have three main advantages. Which of the following is not one of those advantages?

Which of the following transactions would not be recorded in the cash receipts journal?

Which of the following is not an advantage of a computerised accounting system compared to a manual system?

Which of these does not normally provide an input into an accounting system?

Which of the following statements is correct?

A column for discount allowed could be found in which special journal?

The main reason a business may not fully realise the advantages of a computerised accounting system is due to:

Which of the following is not a general ledger software package?

Which of the following transactions would be recorded in the cash payments journal?

Which of the following transactions could not result in a credit balance in a debtor's account?

A general ledger account that summarises the detail maintained in a subsidiary ledger is called a:

Which of the following is not an important consideration in the development of an accounting system?

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation, Disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Accounting for Manufacturing

Cost Accounting Systems

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis, Profitability Analysis and Capital Budgeting

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