1) To safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system ________.

A) should be manual

B) must be flexible to accommodate changes in a business over time

C) should work smoothly with the business's employees

D) must provide adequate controls of a business's assets and data

2) A receipt of cash for the sale of services should be recorded in the:

1. Purchases journal.
2. Cash payments journal.
3. Revenue journal.
4. Cash receipts journal.

3) A sale of goods on account should be recorded in the:

1. Purchases journal.
2. Cash payments journal.
3. Sales journal.
4. Cash receipts journal.

4) A payment of cash for the purchase of services should be recorded in the:

1. Purchases journal.
2. Cash payments journal.
3. Revenue journal.
4. Cash receipts journal.

5) When there are a large number of individual accounts with a common characteristic, it is common to place them in a separate ledger called a(n):

1. Subsidiary ledger.
2. Creditors ledger.
3. Accounts payable ledger.
4. Accounts receivable ledger.