Question 1

Which column in the cash payments journal involves a posting to both the general ledger and the subsidiary ledger?

Accepted Answer

A)   Cash credit column
B)   Other accounts debit column
C)   Accounts payable debit column
D)   Inventory debit column

Question 2

ERP systems are used by some large organisations.ERP stands for:

Accepted Answer

A)   Early Reporting Process.
B)   Expense and Revenue Program.
C)   Enterprise Resource Planning.
D)   Enterprise Record Package.

Question 3

A cash receipts journal could contain all of the following columns except:

Accepted Answer

A)   sales revenue.
B)   purchases.
C)   accounts receivable.
D)   cash.

Question 4

The accounts receivable credit column of the cash receipts journal is:

Accepted Answer

A)   posted in summary only at the end of the month.
B)   posted in summary at the end of the month and by individual amounts on a daily basis.
C)   posted by individual amounts at the end of the accounting period.
D)   posted by individual amounts at the end of the month. B

Question 5

Spreadsheets are ideally suited to preparing budgets.

Accepted Answer

A) True 
 B)False  True

Question 6

Each cell in a spreadsheet is defined by:

Accepted Answer

A)   formulas and labels.
B)   a row number and a label.
C)   a row number and a column letter.
D)   a formula and a column number.

Question 7

If creditors are paid within the discount period,the current treatment required by the accounting standards for the discount received is to:

Accepted Answer

A)   debit the Discount received account.
B)   credit the Discount allowed account.
C)   credit the Inventory account with the net settlement discount.
D)   No entry is required.

Question 8

Big Industries purchased products from Small Suppliers,paying $5 000 in cash and promising to pay the remaining $5 000 in 30 days.Assuming the use of special journals,this entry would be recorded by Big Industries in the:

Accepted Answer

A)   purchases journal.
B)   general journal.
C)   cash payments journal.
D)   Both A and C

Question 9

Assuming the use of special journals,the purchase of inventory from Landin Browning for cash would be recorded in the:

Accepted Answer

A)   cash receipts journal.
B)   general journal.
C)   cash payments journal.
D)   purchases journal. C

Question 10

When special journals are used,all transactions must be posted individually to the general ledger.

Accepted Answer

A) True 
 B)False

Question 11

When a business returns goods to the seller,it may accompany the goods with a document known as a:

Accepted Answer

A)   debit note.
B)   credit note.
C)   debit memo.
D)   A and C are correct.

Question 12

With a manual accounting system,adjusting and closing entries:

Accepted Answer

A)   are recorded in the cash payments journal.
B)   are recorded in the general journal.
C)   are not recorded when a business uses special journals.
D)   are recorded in the cash receipts journal.

Question 13

The total of all balances in the accounts receivable subsidiary ledger should equal the balance of the:

Accepted Answer

A)   accounts receivable account in the general ledger.
B)   cash account in the general ledger.
C)   accounts payable account in the general ledger.
D)   sales revenue account in the general ledger.

Question 14

Lee Enterprises received payment within the discount period from a customer who had purchased goods on credit.The sales invoice was for $2 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal,$1 940 will appear in the:

Accepted Answer

A)   accounts receivable debit column.
B)   sales revenue credit column.
C)   cash credit column.
D)   cash debit column.

Question 15

The three stages of data processing are:

Accepted Answer

A)   inputs, decision making and outputs.
B)   source documents, processing and decision making.
C)   processing, reports and decision making.
D)   inputs, processing and outputs.

Question 16

Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased goods on credit.The sales invoice was for $3 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal:

Accepted Answer

A)   $3 000 will appear in the accounts receivable credit column.
B)   $3 000 will appear in the sales revenue credit column.
C)   $3 000 will appear in the accounts receivable debit column.
D)   none of the above

Question 17

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 18

Inputs into accounting systems are the reports used for decision making,including the financial statements.

Accepted Answer

A) True 
 B)False

Question 19

A company has four vendors and the accounts payable subsidiary ledger shows the following balances.
  Alpha $282,821 Beta 151,474 Gamma 88,943 Delta 37,187\begin{array} { | l | l | } \hline 	ext { Alpha } & \$ 282,821 \\hline 	ext { Beta } & 151,474 \\hline 	ext { Gamma } & 88,943 \\hline 	ext { Delta } & 37,187 \\hline\end{array} Alpha  Beta  Gamma  Delta ​$282,821151,47488,94337,187​​ 
Calculate the accounts payable balance in the general ledger.

Accepted Answer

A)   $277,604
B)   $434,295
C)   $560,425
D)   $282,821

Question 20

Accounts that provide supporting details for a control account in the general ledger are known as a:

Accepted Answer

A)   special journal.
B)   control account.
C)   spreadsheet.
D)   subsidiary ledger.

Exam 7: Accounting Information Systems

Which column in the cash payments journal involves a posting to both the general ledger and the subsidiary ledger?

Correct Answer
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ERP systems are used by some large organisations.ERP stands for:

Correct Answer
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A cash receipts journal could contain all of the following columns except:

Correct Answer
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The accounts receivable credit column of the cash receipts journal is:

Correct Answer
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B

Spreadsheets are ideally suited to preparing budgets.

Correct Answer
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True

Each cell in a spreadsheet is defined by:

Correct Answer
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If creditors are paid within the discount period,the current treatment required by the accounting standards for the discount received is to:

Correct Answer
verified

Big Industries purchased products from Small Suppliers,paying $5 000 in cash and promising to pay the remaining $5 000 in 30 days.Assuming the use of special journals,this entry would be recorded by Big Industries in the:

Correct Answer
verified

Assuming the use of special journals,the purchase of inventory from Landin Browning for cash would be recorded in the:

Correct Answer
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C

When special journals are used,all transactions must be posted individually to the general ledger.

Correct Answer
verified

When a business returns goods to the seller,it may accompany the goods with a document known as a:

Correct Answer
verified

With a manual accounting system,adjusting and closing entries:

Correct Answer
verified

The total of all balances in the accounts receivable subsidiary ledger should equal the balance of the:

Correct Answer
verified

Lee Enterprises received payment within the discount period from a customer who had purchased goods on credit.The sales invoice was for $2 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal,$1 940 will appear in the:

Correct Answer
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The three stages of data processing are:

Correct Answer
verified

Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased goods on credit.The sales invoice was for $3 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal:

Correct Answer
verified

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

Correct Answer
verified

Inputs into accounting systems are the reports used for decision making,including the financial statements.

Correct Answer
verified

Correct Answer
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Accounts that provide supporting details for a control account in the general ledger are known as a:

Correct Answer
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Exam 7: Accounting Information Systems

Which column in the cash payments journal involves a posting to both the general ledger and the subsidiary ledger?

Correct AnswerverifiedShow Answer

ERP systems are used by some large organisations.ERP stands for:

Correct AnswerverifiedShow Answer

A cash receipts journal could contain all of the following columns except:

Correct AnswerverifiedShow Answer

The accounts receivable credit column of the cash receipts journal is:

Correct AnswerverifiedB

Spreadsheets are ideally suited to preparing budgets.

Correct AnswerverifiedTrue

Each cell in a spreadsheet is defined by:

Correct AnswerverifiedShow Answer

If creditors are paid within the discount period,the current treatment required by the accounting standards for the discount received is to:

Correct AnswerverifiedShow Answer

Big Industries purchased products from Small Suppliers,paying $5 000 in cash and promising to pay the remaining $5 000 in 30 days.Assuming the use of special journals,this entry would be recorded by Big Industries in the:

Correct AnswerverifiedShow Answer

Assuming the use of special journals,the purchase of inventory from Landin Browning for cash would be recorded in the:

Correct AnswerverifiedC

When special journals are used,all transactions must be posted individually to the general ledger.

Correct AnswerverifiedShow Answer

When a business returns goods to the seller,it may accompany the goods with a document known as a:

Correct AnswerverifiedShow Answer

With a manual accounting system,adjusting and closing entries:

Correct AnswerverifiedShow Answer

The total of all balances in the accounts receivable subsidiary ledger should equal the balance of the:

Correct AnswerverifiedShow Answer

Lee Enterprises received payment within the discount period from a customer who had purchased goods on credit.The sales invoice was for $2 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal,$1 940 will appear in the:

Correct AnswerverifiedShow Answer

The three stages of data processing are:

Correct AnswerverifiedShow Answer

Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased goods on credit.The sales invoice was for $3 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal:

Correct AnswerverifiedShow Answer

The accounts payable subsidiary ledger controls the accounts payable account in the general ledger.

Correct AnswerverifiedShow Answer

Inputs into accounting systems are the reports used for decision making,including the financial statements.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accounts that provide supporting details for a control account in the general ledger are known as a:

Correct AnswerverifiedShow Answer

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B

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True

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C

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