RayMan Review Chapter 7 (1) (Protected View)- Word (Unlicensed Product) n Layout References Mailings Review View Help Tell me what you want to do ul-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing the features of Word have been disabled. Reactivate Chapter 7 Review Question 1). The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is a. cost effectiveness b. flexibility c. useful output d. implementation. 2. Which of the following is not a basic principle of designing and developing an effective accounting information system? a. Approval by the SEC b. Usefulness C. Flexibility d. Cost effectiveness 3) A company wil usually replace a manual accounting information system with an electronic system as the operations increase in a. efficiency b. complexity c. simplicity d. productivity. 4) In developing an accounting system, cost effectiveness does not imply that a. the benefits obtained from the system outweigh the costs. b. an electronic system must be cheaper than the system it is replacing c. the system should be cost effective. d. the value of an accounting report should be at least equal to the cost of producing it, Reectivate 5) To be useful, the system b. flexibility d. elimination of human involvement. ARayMan2798 Gimiglaro Review Chapter 7 (1) Protected View)- Word (Unlicensed Product) Design Layout Rferences Mallings Review View Hep Tell me what you want to do Bcarefuliles from the Internt can contain viuses Unless you need to edet, e's safer to stay in Protected WewEnable Editing D Most of the features of Word have been disabled Reactivate 9). Which of the folkowing is a true statement about manual and electronic accounting syslems? a. Few small companies begin with manual systems b. The design and structure of manual and electronic systems are essentially the same c. Many companies convert from electronic to manual systems d. The design and structure of manual and electronic systems are fundamentally dferent 10) Postings to the control accounts in the general ledger are made a. annually b. daily C. monthly d. weekly 11) The balance of a control account in the general ledger a. must always be zero. greater oar, ttocomp etse balace otinchidat accounts na related c, is always greater than the composite balance of individual accounts in related subsidiary ledger d. must equal the composite balance of individual accounts in a related subsidiary ledger 12) A subsidiary ledger is a. used in place of the general ledger if the general ledger is destroyed or stolen. b a group of accounts used by branches and subsidiaries of a corporate business c a group of accounts with a common characteristic that provides detailed information about a control account in the goneral ledger d used to post excess transactions if a general ledger account becomes full during an accounting period 13) Postngs are made daily to the a. Accounts Receivable control account b. Accounts Payable control account c Accounts Receivable subsidiary ledger d. control accounts in the oeneral ledoer search 9 RayMan2 798 Cinigliaro Review Chapter 7(1) Protected View)-Word QUelicensed Product) ert Design Layout ReferencesMailings Raview View HelpTell me what you want to do Enabile Editing e careful4les from the Indernet can contain viruses Unless you need to edt, t's safer to stay in Protected View RED Most of the features of Ward heve been disabled Beactivate A subsidiary ledger frees the general ledger from details of individual balances 14) b external transactions c internal transactions d the control account A company would not lkely use subsidiary ledgers for 15). a. inventory b. owner's capital c. equipment d. accounts receivable 1 16) Postings are made daily to subsidiary ledgers so that a. employees are kept busy b. debits equal credits. c. individual account information is kept current d. the control account will balance to the subsidary ledger to search 8 1 avew Chaptor 7 (1) (Protected View)- Word (Unilicensed Product Insert Design Layout References Malings ReviewView Help Tel me what you want to do Becaref-les from the Internet can contain viruse Unless you need to adit its safer to stay in Protected View. Enable Editing EXPIRED Most of the features of Word heve been dsabled Reac Accounts Receivable and Accounts Payable are examples of 17) a nominal accounts b controling accounts C. subsidiary ledger accounts d. both nominal accounts and controling accounts 18) The composite baiance of individual accounts in the accounts payable subsidiary ledger a. equal the composite balance of the individual accounts in the accounts receivable subsidiary ledger b aways be zero c. equal the balance of the accounts payable account in the goneral ledger d. agree with the total of the Accounts payable column in the cash receipt joural The one charactoristic that all entries recorded in a cash payments journal have in common is 19) a. that they all represent purchases of merchandise. b a credt to the cash account c that they are all posted to the accounts payable subsidiary ledger d. a debit to the accounts payable or purchases accounts 19) In which journal would a customer's partial payment on account be recorded? a. Sales joumal b. Cash receipts journal c General journal d. Cash payments journal 20) in which journal would a cash purchase of inventory be recorded? a. Purchases journal b. General journal cash payments journal d. None of these answer choices are correct 2 ere to search 8 9 Review Chapter 7(1) (Protected Viw)-Word (Unlicensed Product) Insert Design Layout References Maings to carelu Review ViewHelp Tel me what you want to do noble Editing stermet con s you nheed to odit its safer to stay in Protected Vow NEXPIRED Most of the features of Ward heve been disabled Rcvate 21) The individual amounts in the sales journal a subsidiary ledger a daly b. weokly c monthy d. yearly are posted to the accounts receivable A sales jounal is used to record a only cash sales ofl merchandise b. sales of all assets on credt and for cash c. only credit sales of merchandise d. credit sales of merchandise, sales returns and allowances, and sales discounts 22) 23) I 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 directy in the accounts in the general ledger d it is recorded as an adjustment on the work sheet re to search 8 9 Review Chapter 7 (1) Protected View)-Word (Unlicensed Product) ARayMan2798 Cinigliaro n Layout References Malings Review ew HelpTel me what you want to do 24) The one characteristic that all entries recorded in a cash receipts journal have in common is a a credit to the Cash account b. that they all represent collections from customers c that they originate from the sales of merchandise , d a debit to the Cash account 25) A one column purchases journal indicates that a. only purchases of merchandise on account can be recorded b. all purchases of merchandise can be recorded c. all acquisitions on account can be recorded d. another column must be added so that debits and credits can be recorded The one characteristic that all entries recorded in a multi-column purchases journal have 26) in common is a a credit to the Cash account. b. debit to the Cash account c. debit to the Accounts Payable account d. credit to the Accounts Payable account 27. A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a a. one column purchases journal b. multi-column purchases journal. C. cash payments journal. d. general journal. If merchandise from a cash sale is returned by a customer for a refund, the sales return is 28). recorded in the a. general journal b. cash receipts journal c. cash payments journal. d. sales journal. Review Chapter 7 (1) (Protected View) - Word (Unlicensed Product) References Mailings Reviow View Help Sales journal b. a. Purchases journal General journal d. C. Cash receipts journal 30) Correcting entries are journalized in a. a special journal. b. the general journal. the general ledger d. a correcting journal. 31). Adjusting entries are recorded a. only on the worksheet b. only in the general ledger. c. in the general journal. d. in the special journals 32) All of the column totals in the cash receipts journal are posted to general ledger accounts except the a. Accounts Receivable column total. b. Cash column total c. Sales column total. d. Other Accounts column total. Review Chapter 7 (1) (Protected View) -Word (Unlicensed Product A RayMan n Layout References MailingsReviewView Help Tell me what you want to do a. not recorded. b. a correcting entry C. recorded in the general journal. d. an error. 34) A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and a general journal. A cash sales return would be recorded in the a. sales journal. b. cash receipts journal. c, cash payments journal. d. general journal. 35) The entries in a sales journal will show a. all sales of merchandise. b. the cash sales of the company C. the credit sales of merchandise. d. all sales of the company 36) Entries in a sales journal a. are made from sales invoices. b. will indicate the invoice number in the reference column of the sales journal C. will occupy two lines of the sales journal. d. indicate either a cash debit or accounts receivable debit 37) Journalizing in a sales journal will not a. require a debit to Accounts Receivable. b. show a sales invoice number c. affect the reference column of the journal. d. include a credit to the Sales Revenue account. 38) If an owner withdraws cash for personal use, the transaction should be recorded in the a. sales journal b. cash receipts journal. C. general journal. d. cash pavments journal. RayMan2798 Cimigl Review Chapter 7 (1) (Protected View)-Word (Unlicensed Product) Layout References Malings Review View HelpTell me what you want to do 39). Ifa 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 40) Cash from sales of merchandise will be recorded in the a. purchases journal. b. sales journal. c. cash receipts journal. d. general journal. 41) Postings from the purchases journal to the general ledger are made a. daily b. monthly C. weekly. d. yearly 42) The individual amounts in the Accounts Payable column in the cash payments journal are posted to the subsidiary ledger a. daily b. monthly. c. weekly. d. yearly 43) Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the a. sales journal b. cash receipts journal C. purchases journal d. cash payments journal. Ravies Chapter 7 () Protected View) Word (Wilicensed Product Insert Design Layout Referances MallingsRaviaw Vew Help ellme what you mant to do 4) Entries in a sales journal are a posted only to accounts in an accounts receivable subsidiary ledger b. posted only to accounts in the general ledger c posted to accounts in an accounts receivable subsidiary ledger and to accounts in the general ledger , d. never posted 45) 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 Discounts column c Accounts Receivable column d. Other Accounts colamn 46) The use of special journals to record transactions a. eliminates the need for a general ledger c eliminates the need for a general journal. d. should only be used if the volume of transactions is smal Review Chapter 7 (1) (Protected View) Word (Unlicensed Product) Design Layout References Mailings Review View Help Tell me what you want to do 47) Posting a sales journal to the accounts in the general ledger requires a a. debit to Cash and a credit to Sales Revenue b. debit to Sales Revenue and a credit to Inventory c. debit to Accounts Recevable and a credit to Inventory d. debit to Accounts Receivable and a credit to Sales Revenue 48) The entries recorded in the Other Accounts column of a cash payments journal a. are posted to the accounts payable subsidiary ledger daily b. are posted individually to accounts in the general ledger c are not posted individually but are posted as a column total to the general ledger. d. do not require posting The entry to record the granting of credit to a customer for a sales return is posted to a. the accounts receivable subsidiary ledger only b. the general ledger only c both the accounts receivable subsidiary ledger and the general ledger. d. both the accounts payable subsidiary ledger and the general ledger 49) 50) Proving the equality of the totals in the columns of multiple-column special journals is called a. posting to the subsidiary b. debiting and crediting c. footing and crossfooting d. updating the master file