FR AND MRS

Question 1

It characterized as a hub connected to the other systems of the firm through spokes of information flows.

Answer 1

General ledger system

Question 2

Its an accounting document that serves as the source of transactions included in the general ledger.

Answer 2

Journal voucher

Question 3

Its labeled as the principal file in the GLS database and this file is based on
the organization’s published chart of accounts.

Answer 3

General ledger (GL) master file

Question 4

Its primary purpose is to provide
historical financial data for comparative financial reports.

Answer 4

General ledger history file

Question 5

It is the total collection of the journal vouchers processed in the current period and this file provides a record of all general ledger transactions and replaces the traditional general journal.

Answer 5

Journal voucher file

Question 6

It contains a journal voucher from past periods.

Answer 6

Journal voucher history file

Question 7

It contains the revenues, expenditures, and other resource utilization data for each responsibility center in the organization.

Answer 7

Responsibility center file

Question 8

It is the end product of the whole accounting process.

Answer 8

Financial reports

Question 9

Within each transaction cycle, transactions are recorded in the appropriate transaction file.

Answer 9

Capture the transaction

Question 10

Each transaction is entered into the journal.

Answer 10

Record in a special journal

Question 11

The details of each transaction are posted to affected subsidiary accounts

Answer 11

Post to the subsidiary ledger

Question 12

Periodically, journal vouchers, summarizing the entries made to the special journals and subsidiary ledgers, are prepared and posted to the GL accounts.

Answer 12

Post to the general ledger

Question 13

At the end of the accounting period, the ending balance of each accounts in the GL is placed in a worksheet and evaluated based on the equality of debits and credits.

Answer 13

Prepare the unadjusted trial balance

Question 14

Adjusting entries are made to the worksheet to correct errors and to reflect unrecorded transactions during the period, such as depreciation.

Answer 14

Make adjusting entries

Question 15

Journal vouchers for the adjusting entries are prepared and posted
to the appropriate accounts in the GL.

Answer 15

Journalize and post adjusting entries

Question 16

From the adjusted balances, a trial balance is prepared, which contains
all entries that should be reflected in the financial statements.

Answer 16

Prepare the adjusted trial balance

Question 17

The balance sheet, income statement, and statement of cash flows are
prepared using the adjusted trial balance

Answer 17

Prepare the financial statement

Question 18

Journal vouchers are prepared and posted for entries that close out the income statement (temporary) accounts and transfer the income or loss to retained earnings.

Answer 18

Journalize and post the closing entries

Question 19

Trial balance worksheet containing only the balance sheet accounts may now be prepared to indicate the balances being carried forward to the next accounting period.

Answer 19

Prepare the post-closing trial balance

Question 20

This principle suggests that management should structure the firm around the tasks it performs rather than around individuals with unique skills.

Answer 20

Formalization of tasks

Question 21

This refers to an individual obligation to achieve the desired results.

Answer 21

Responsibility and authority

Question 22

It refers to the number of subordinates directly under his/her control.

Answer 22

Span of control

Question 23

This principle suggests that managers should limit their attention to potential problem areas rather than being involved with every activity or decision.

Answer 23

Management by exception