Question 1

In which journal would a cash purchase of inventory be recorded?

Purchases journal

Cash payments journal

General journal

None of these answer choices are correct

Question 2

If a transaction cannot be recorded in a special journal

it is recorded in the general journal.

it is recorded as an adjustment on the work sheet.

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

the company must refuse to enter into the transaction.

Question 3

Which of the following is not a special journal?

Purchases journal

General journal

Cash receipts journal

Sales journal

Question 4

Which of the following statements is incorrect?

To be useful, information must be understandable, relevant, reliable, timely, and accurate.

A major consideration in developing an accounting system is cost effectiveness.

When an accounting system is designed, no consideration needs to be given to the needs and knowledge of the various users.

The accounting system should be able to accommodate a variety of users and changing information needs.

Question 5

On a bank reconciliation, deposits in transit are

deducted from the bank balance.

deducted from the book balance.

added to the bank balance.

added to the book balance