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27) A subsidiary ledger is A) a created list of accounts used by a business entity to define each class of items for which cash

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27) A subsidiary ledger is A) a created list of accounts used by a business entity to define each class of items for which cash is spent or received. B) a record of accounts that provide supporting details on individual balances, the total of which appears in a general ledger account. C) an accounting journal designed to record a specific type of transaction. D) a complete record of business transactions recorded in a ledger over the life of a company. 28) A control account A) is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements. B) does not appear on the balance sheet. C) has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger. D) holds individual accounts that support a general ledger account. 29) Which of the following statements is correct? A) The accounts receivable subsidiary ledger does not include a receivable account for each customer B) Individual accounts receivable are posted monthly from the sales journal to the accounts receivable subsidiary ledger C) Cash is credited in each transaction in the cash receipts journal. D) Individual accounts payable are posted daily from the purchases journal to the accounts payable subsidiary ledger. 30) A sales journal is A) used to record the sales of assets other than merchandise inventory B) a general journal used to record the adjustments in revenue account C) a special journal used to record credit sales of merchandise. D) a special journal used to record all the cash sales. separation of duties? 31) Which of the following illustrates the internal control procedure A) External auditors will monitor internal controls. B) The invoices and other documents must be pre-numbered. C) Cashiers must not have access to accounting records. D) Electronic devices must be installed to reduce theft 32) Vaughan Services hires a new accountant to maintain its petty cash fund. Although the employee possesses an accounting degree he/she had been previously convicted of embezzlement. Which internal control procedure needs to be addressed in this situation? A) assignment of responsibilities B) competent, reliable, and ethical personnel C) separation of duties D) documents B blities loment. Which is potent, reliable, and ethie aration of duties - 33) City Advertising Services hired a new accounting manager. He signed a contract for a new accounting information system, but his position did not specify whether he was authorized to do so or not. Which internal control procedure needs strengthening? A) assignment of responsibilities B) competent, reliable, and ethical personnel C) separation of duties D) documents

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