Chapter 7 Terms

Question 1

Accounting Information System

Answer 1

A system that collects and processes transaction data and communicates financial information to decision-makers

Question 2

Accounts Payable Subsidiary Ledger (Creditors’)

Answer 2

A subsidiary ledger that collects transaction data of individual creditors

Question 3

Accounts Receivable Subsidiary Ledger (Customers’)

Answer 3

A subsidiary ledger that collects transaction data of individual customers

Question 4

Cash Payments Journal (Cash Disbursements)

Answer 4

A special journal that records all disbursements of cash

Question 5

Cash Receipts Journal

Answer 5

A special journal that records all cash received

Question 6

Control Account

Answer 6

An account in the general ledger that summarizes subsidiary ledger data

Question 7

Cybercrime

Answer 7

A crime that involves the internet, a computer system, or computer technology

Question 8

Manual Accounting System

Answer 8

A system in which someone performs each of the steps in the accounting cycle by hand

Question 9

Purchases Journal

Answer 9

A special journal that records all purchases of merchandise on account

Question 10

Sales Journal

Answer 10

A special journal that records all sales of merchandise on account

Question 11

Special Journals

Answer 11

Journals that record similar types of transactions, such as all credit sales

Question 12

Subsidiary Ledger

Answer 12

A group of accounts with a common characteristic