CH5 - Accounting Systems

Question 1

The methods and procedures used by a business to collect, classify, summarize, and report financial data for use by management and external users.

Answer 1

accounting system

Question 2

The special journal in which all cash payments are recorded.

Answer 2

cash payments journal

Question 3

The special journal in which all cash receipts are recorded.

Answer 3

cash receipts journal

Question 4

The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger.

Answer 4

controlling account

Question 5

The use of the Internet for performing business transactions.

Answer 5

e-commerce

Question 6

The two-column form used for entries that do not “fit” in any of the special journals.

Answer 6

general journal

Question 7

The primary ledger, when used in conjunction with subsidiary ledgers, that contains all of the balance sheet and income statement accounts.

Answer 7

general ledger

Question 8

The policies and procedures used to safeguard assets, ensure accurate business information, and ensure compliance with laws and regulations.

Answer 8

internal controls

Question 9

The bill that the seller sends to the buyer.

Answer 9

invoice

Question 10

journal in which all items purchased on account are recorded.

Answer 10

purchases journal

Question 11

The journal in which all sales and services on account are recorded.

Answer 11

revenue journal

Question 12

Journals designed to be used for recording a single type of transaction.

Answer 12

special journals

Question 13

A ledger containing individual accounts with a common characteristic.

Answer 13

subsidiary ledger