Question 1

Some of the more common subsidiary ledgers are:

Accepted Answer

A)   Accounts Payable, Accounts Receivable, and Owner's Equity subsidiary ledgers.
B)   Accounts Receivable and Accounts Payable subsidiary ledgers.
C)   Accounts Receivable, Accounts Payable, Cash, Checking, Petty Cash, and Owner's Equity subsidiary ledgers.
D)   Cash and Owner's Equity subsidiary ledgers.E) B) and D)
F) B) and C)

Question 2

If a company uses special journals

Accepted Answer

A)   it must have one for cash, receivables, and payables
B)   it may have no more than four
C)   the quantity and design depend on the needs of the company
D)   the design must comply with the FASB requirementsE) All of the above
F) B) and D)

Question 3

The Other Accounts column in the Cash Payments journal is used for recording debits to any account for which there is no specialized debit column.

Accepted Answer

A) True 
 B)False

Question 4

The purchase of supplies for cash would be recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 5

Waller Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice information:  Using horizontal analysis, determine the percentage change in revenues for the North region.
Round to one decimal place.

Accepted Answer

A)   22.4%
B)   (25.0%) 
C)   25.0%
D)   (22.4%) E) B) and D)
F) A) and D)

Question 6

A purchase of supplies for cash is recorded in the

Accepted Answer

A)   Revenue journal
B)   Purchases journal
C)   Cash Receipts journal
D)   Cash Payments journalE) B) and C)
F) A) and B)

Question 7

Which transaction is normally recorded in a special journal?

Accepted Answer

A)   sales returns
B)   depreciation expense
C)   purchases on account
D)   issued stock dividendE) A) and D)
F) All of the above

Question 8

Processing methods are the means by which the system collects, summarizes, and reports accounting information.

Accepted Answer

A) True 
 B)False

Question 9

Each individual entry in the Revenue Journal is posted to

Accepted Answer

A)   the Accounts Receivable controlling account
B)   the accounts receivable subsidiary ledger
C)   the Revenue controlling account
D)   the accounts receivable subsidiary ledger and the controlling accountE) A) and C)
F) C) and D)

Question 10

If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate the journal in which each of the following transactions should be recorded:

Accepted Answer

The answer of If a two-column (all-purpose) general journal, a...

Question 11

Identify the three main advantages of a computerized accounting system over a manual accounting system.

Accepted Answer

1. Simplification of the recording proce...

Question 12

The following is an example of:

Accepted Answer

A)   product analysis
B)   vertical analysis
C)   horizontal analysis
D)   percentage analysisE) None of the above
F) A) and B)

Question 13

The term B2C refers to transactions conducted between two companies.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is recorded in the cash payments journal?

Accepted Answer

A)   adjusting entry for accrued salaries
B)   receipt of cash on supplies returned
C)   receipt of cash from services rendered
D)   payment of employees' salariesE) B) and C)
F) All of the above

Question 15

The post reference column of the revenue journal will reference the account number of the customer.

Accepted Answer

A) True 
 B)False

Question 16

In which journal would adjusting entries be found?

Accepted Answer

A)   cash receipts journal
B)   cash payments journal
C)   general journal
D)   purchases journalE) A) and D)
F) B) and C)

Question 17

At the end of the month, the total of the amount column of the revenue journal is posted as a

Accepted Answer

A)   debit to Accounts Receivable and a credit to Cash
B)   debit to Accounts Receivable and a credit to Fees Earned
C)   debit to Cash and a credit to Fees Earned
D)   debit to Cash and a credit to Accounts PayableE) B) and C)
F) C) and D)

Question 18

Which of the following is not considered a special journal?

Accepted Answer

A)   purchases journal
B)   cash receipts journal
C)   general journal
D)   cash payments journalE) All of the above
F) B) and C)

Question 19

The format and number of specialized journals that a business uses depends upon the legal organization of the business.

Accepted Answer

A) True 
 B)False

Question 20

Computerized accounting systems

Accepted Answer

A)   is a tedious form of recordkeeping process.
B)   improve the timeliness of reporting.
C)   prevent all journalizing errors.
D)   are only used in medium and large businesses.E) A) and B)
F) A) and D)

Exam 5: Accounting Systems

Some of the more common subsidiary ledgers are:

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Which of the following is recorded in the cash payments journal?

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Identify the three main advantages of a computerized accounting system over a manual accounting system.

Correct Answerverified1. Simplification of the recording proce...View AnswerShow Answer

The purchase of supplies for cash would be recorded in the purchases journal.

Correct AnswerverifiedShow Answer

At the end of the month, the total of the amount column of the revenue journal is posted as a

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If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate the journal in which each of the following transactions should be recorded:

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The Other Accounts column in the Cash Payments journal is used for recording debits to any account for which there is no specialized debit column.

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In which journal would adjusting entries be found?

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Processing methods are the means by which the system collects, summarizes, and reports accounting information.

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A purchase of supplies for cash is recorded in the

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Each individual entry in the Revenue Journal is posted to

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If a company uses special journals

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Which of the following is not considered a special journal?

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Which transaction is normally recorded in a special journal?

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The following is an example of:

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The term B2C refers to transactions conducted between two companies.

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Waller Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice information: Using horizontal analysis, determine the percentage change in revenues for the North region. Round to one decimal place.

Correct AnswerverifiedShow Answer

The format and number of specialized journals that a business uses depends upon the legal organization of the business.

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Computerized accounting systems

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The post reference column of the revenue journal will reference the account number of the customer.

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