ACCOUNTING INFORMATION SYSTEMS

1. Postings to the control accounts in the general ledger are made

a. annually.

b. daily.

c. monthly.

d. weekly.

2. A subsidiary ledger frees the general ledger from details of

a. individual balances.

b. external transactions.

c. internal transactions.

d. the control account.

3. If a transaction cannot be recorded in a special journal

a. the company must refuse to enter into the transaction.

b. it is recorded in the general journal.

c. it is recorded directly in the accounts in the general ledger.

d. it is recorded as an adjustment on the work sheet.

4. If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded in the

a. general journal.

b. cash receipts journal.

c. cash payments journal.

d. sales journal.

5. If a company purchases merchandise for cash, the transaction should be recorded in the

a. purchases journal.

b. general journal.

c. cash payments journal.

d. sales journal.

6. Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

a. Cash column

b. Sales Discount column

c. Accounts Receivable column

d. Other Accounts column

7. Which of the following would not be an appropriate heading for a column in the cash receipts journal?

a. Cash

b. Accounts Payable

c. Sales Discounts

d. Sales

8. Which of the following is not an advantage of a subsidiary ledger?

a. Shows transactions affecting one customer or one creditor in a single account.

b. Helps locate errors in individual accounts.

c. Puts greater detail in the general ledger.

d. Makes possible a division of labor.

9. Credit sales of assets other than merchandise are recorded in the

a. cash payments journal.

b. cash receipts journal.

c. general journal.

d. sales journal.

10. When converting to IFRS statements, a company must do each of the following except

a. identify the timing of its first IFRS statements.

b. prepare an income statement at the date of transition to IFRS.

c. select accounting principles that comply with IFRS.

d. make extensive disclosures to explain the transition to IFRS.