Question 1

Month-end posting to controlling accounts in a computerized accounting system is not required because

Accepted Answer

A)   controlling accounts are not used in computerized systems.
B)   transactions are posted to accounts immediately.
C)   the input operator can choose to post to accounts at any time.
D)   computerized accounting posts entry at the end of the financial year.E) All of the above
F) A) and B)

Question 2

The phase of accounting system installation in which the information needs of people in the organization are taken into account is

Accepted Answer

A)   analysis
B)   design
C)   implementation
D)   installationE) C) and D)
F) B) and D)

Question 3

When posting the column totals of a cash payments journal, a debit should be posted to

Accepted Answer

A)   Cash
B)   Accounts Payable
C)   Sales Discounts
D)   Unearned RevenueE) A) and D)
F) A) and B)

Question 4

Accounting systems evolve through a three-step process: analysis, design and feedback.

Accepted Answer

A) True 
 B)False

Question 5

What is a business segment? How can business segments be analyzed?

Accepted Answer

A business segment is a subset of a busi...

Question 6

The total of the accounts receivable subsidiary accounts and the account receivable controlling account should balance to each other at the end of the period.

Accepted Answer

A) True 
 B)False

Question 7

Anderson, Inc. incurred the following transactions during the month of February, 2010. Record the appropriate ones in the Cash payments journal. If a transaction should not be recorded in the Cash payments journal, indicate where it should be posted.

Accepted Answer

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Question 8

Mobile Service Corp. has the following debits and credits from two transactions presented in the a customer account:
NAME: Gen-X Products, Inc.
Address: 123 My Way
  Describe each transaction and the source of each posting.

Accepted Answer

The answer of Mobile Service Corp. has the following debits...

Question 9

Transactions must first be recorded into the general journal before they can be entered into specialized journals.

Accepted Answer

A) True 
 B)False

Question 10

E-commerce provides business opportunities at a higher cost.

Accepted Answer

A) True 
 B)False

Question 11

Briefly describe the three-step process of accounting system development.

Accepted Answer

The answer of Briefly describe the three-step process of accounting...

Question 12

If a two-column (all-purpose) general journal, a purchases journal, and a cash payments 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 13

Which of the following transactions is recorded in the purchases journal?

Accepted Answer

A)   purchase of store supplies on account
B)   return of damaged office equipment
C)   purchase of store supplies for cash
D)   purchase of office equipment for cashE) All of the above
F) A) and C)

Question 14

Segment data:

Accepted Answer

A)   can be used for vertical, but not horizontal analysis.
B)   is gathered from invoice data.
C)   is only useful by product line.
D)   analysis is required by GAAP.E) A) and B)
F) A) and C)

Question 15

Davidson, Inc. incurred the following transactions during the month of January. Record the appropriate ones in the Cash receipts journal. If a transaction should not be recorded in the Cash receipts journal, indicate where it should be posted.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB2013_00 Transaction (a) sho...

Question 16

The primary ledger containing all the balance sheet and income statement accounts is the

Accepted Answer

A)   general ledger
B)   creditors ledger
C)   customers ledger
D)   subsidiary ledgerE) B) and D)
F) B) and C)

Question 17

Generally, subsidiary ledgers are used for accounts that consist of a large number of individual items.

Accepted Answer

A) True 
 B)False

Question 18

The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings?

Accepted Answer

Accounts Receivable and Cash are not nee...

Question 19

Subsidiary ledgers

Accepted Answer

A)   are used only for Accounts Payable and Accounts Receivable
B)   may be used for various ledger accounts
C)   may be used for only for the Cash account
D)   are never used for more than four accountsE) None of the above
F) B) and D)

Question 20

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

Accepted Answer

A)   Accounts Payable - Cr., Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Dr.
B)   Accounts Payable - Dr, Other - Dr, Beverage Supplies - Cr, Food Supplies -Cr, Retain Items Supplies - Cr.
C)   Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Dr, Cash - Cr.
D)   Beverage Supplies - Dr, Food Supplies - Dr, Retail Items Supplies - Dr, Other - Cr, Accounts Payable - Dr.E) All of the above
F) A) and B)

Exam 5: Accounting Systems

What is a business segment? How can business segments be analyzed?

Correct AnswerverifiedA business segment is a subset of a busi...View AnswerShow Answer

Accounting systems evolve through a three-step process: analysis, design and feedback.

Correct AnswerverifiedShow Answer

E-commerce provides business opportunities at a higher cost.

Correct AnswerverifiedShow Answer

Month-end posting to controlling accounts in a computerized accounting system is not required because

Correct AnswerverifiedShow Answer

Which of the following transactions is recorded in the purchases journal?

Correct AnswerverifiedShow Answer

The total of the accounts receivable subsidiary accounts and the account receivable controlling account should balance to each other at the end of the period.

Correct AnswerverifiedShow Answer

The phase of accounting system installation in which the information needs of people in the organization are taken into account is

Correct AnswerverifiedShow Answer

The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings?

Correct AnswerverifiedAccounts Receivable and Cash are not nee...View AnswerShow Answer

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Briefly describe the three-step process of accounting system development.

Correct AnswerverifiedShow Answer

Mobile Service Corp. has the following debits and credits from two transactions presented in the a customer account: NAME: Gen-X Products, Inc. Address: 123 My Way Describe each transaction and the source of each posting.

Correct AnswerverifiedShow Answer

Anderson, Inc. incurred the following transactions during the month of February, 2010. Record the appropriate ones in the Cash payments journal. If a transaction should not be recorded in the Cash payments journal, indicate where it should be posted.

Correct Answerverified_TB2013_00 Transaction (a) sho...View AnswerShow Answer

When posting the column totals of a cash payments journal, a debit should be posted to

Correct AnswerverifiedShow Answer

Generally, subsidiary ledgers are used for accounts that consist of a large number of individual items.

Correct AnswerverifiedShow Answer

Davidson, Inc. incurred the following transactions during the month of January. Record the appropriate ones in the Cash receipts journal. If a transaction should not be recorded in the Cash receipts journal, indicate where it should be posted.

Correct Answerverified_TB2013_00 Transaction (a) sho...View AnswerShow Answer

The primary ledger containing all the balance sheet and income statement accounts is the

Correct AnswerverifiedShow Answer

Transactions must first be recorded into the general journal before they can be entered into specialized journals.

Correct AnswerverifiedShow Answer

Subsidiary ledgers

Correct AnswerverifiedShow Answer

Segment data:

Correct AnswerverifiedShow Answer

Correct Answer
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A business segment is a subset of a busi...
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Correct Answer
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Accounts Receivable and Cash are not nee...
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_TB2013_00 Transaction (a) sho...
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_TB2013_00 Transaction (a) sho...
View Answer

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Correct Answer
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