Chapter 7 Self Test Flashcards
The basic principles of an accounting information system include all of the following except: cost-effectiveness. flexibility. useful output. periodicity.
periodicity.
Which of the following is not an advantage of computerized accounting systems?
Data is entered only once in computerized accounting systems.
Computerized accounting systems provide up-to-date information.
Computerized accounting systems eliminate entering of transaction information.
Computerized accounting systems eliminate many errors resulting from human intervention.
Computerized accounting systems eliminate entering of transaction information.
Which of the following is incorrect concerning subsidiary ledgers?
The purchases ledger is a common subsidiary ledger for creditor accounts.
The accounts receivable ledger is a subsidiary ledger.
A subsidiary ledger is a group of accounts with a common characteristic.
An advantage of the subsidiary ledger is that it permits a division of labor in posting.
The purchases ledger is a common subsidiary ledger for creditor accounts.
Two common subsidiary ledgers are: accounts receivable and cash receipts. accounts payable and cash payments. accounts receivable and accounts payable. sales and cost of goods sold.
accounts receivable and accounts payable.
At the beginning of the month, the accounts receivable subsidiary ledger showed balances for Apple Company $5,000 and Berry Company $7,000. During the month, credit sales were made to Apple $6,000, Berry $4,500, and Cantaloupe $8,500. Cash was collected on account from Berry $11,500 and Cantaloupe $3,000. At the end of the month, the control account Accounts Receivable in the general ledger should have a balance of: $11,000. $12,000. $16,500. $31,000.
$16,500.
A purchase of equipment on account is recorded in the: cash receipts journal. purchases journal. cash payments journal. general journal.
general journal.
A purchase of equipment using cash is recorded in the: cash receipts journal. purchases journal. cash payments journal. general journal.
cash payments journal
Which of the following statements is correct?
The sales discount column is included in the cash receipts journal.
The purchases journal records all purchases of merchandise whether for cash or on account.
The cash receipts journal records sales on account.
Merchandise returned by the buyer is recorded by the seller in the purchases journal.
The sales discount column is included in the cash receipts journal.
Which of the following is incorrect concerning the posting of the cash receipts journal?
The total of the Other Accounts column is not posted.
All column totals except the total for the Other Accounts column are posted once at the end of the month to the account title(s) specified in the column heading.
The totals of all columns are posted daily to the accounts specified in the column heading.
The individual amounts in a column posted in total to a control account are posted daily to the subsidiary ledger account specified in the Account Credited column.
The totals of all columns are posted daily to the accounts specified in the column heading.
Postings from the purchases journal to the subsidiary ledger are generally made: yearly. monthly. weekly. daily.
daily.
Which statement is incorrect regarding the general journal?
Only transactions that cannot be entered in a special journal are recorded in the general journal.
Dual postings are always required in the general journal.
The general journal may be used to record acceptance of a note receivable in payment of an account receivable.
Correcting, adjusting, and closing entries are made in the general journal.
Dual postings are always required in the general journal.
When companies use special journals:
they record all purchase transactions in the purchases journal.
they record all cash received, except from cash sales, in the cash receipts journal.
they record all cash disbursements in the cash payments journal.
a general journal is not necessary.
they record all cash disbursements in the cash payments journal.
If a customer returns goods for credit, the selling company normally makes an entry in the: cash payments journal. sales journal. general journal. cash receipts journal.
general journal.
