Question 1

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system, th...

Question 2

Segment return on assets is segment operating income divided by segment average assets.

Accepted Answer

A) True 
 B)False

Question 3

_____________________________________ consist of people, records, methods and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Accepted Answer

Accounting...

Question 4

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May:
  Record these transactions in the following journals:

Accepted Answer

The answer of Renton Co. uses special journals to record...

Question 5

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Accepted Answer

The answer of The _____________________ principle requires that an accounting...

Question 6

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Accepted Answer

A) True 
 B)False

Question 7

Using __________________ ledgers removes unnecessary details from the general ledger.

Accepted Answer

subsidiary

Question 8

When a company uses special journals, the general journal is used for selected transactions and events including:

Accepted Answer

A)   Recording adjusting transactions.
B)   Posting transactions to special journals.
C)   Accumulating debits and credits.
D)   Collecting detailed listings of amounts.
E)   Recording cash receipts.F) D) and E)
G) B) and E)

Question 9

Internal control procedures do not include:

Accepted Answer

A)   Procedures to ensure reliable financial reports.
B)   Safeguards to protect company assets.
C)   Methods to achieve compliance with laws and regulation.
D)   Procedures to guarantee against fraud.
E)   Policies to direct operations toward common goals.F) A) and B)
G) A) and C)

Question 10

A customer who had purchased $75,000 worth of merchandise on account returns 5% of this order to the seller because he is not satisfied with the quality of the goods. This transaction would be recorded in which journal if historically the seller has had very few returns of this nature?

Accepted Answer

A)   Sales journal
B)   Purchases journal
C)   Cash disbursements journal
D)   Cash receipts journal
E)   General journalF) A) and D)
G) D) and E)

Question 11

Match between columns
                        Premises:  A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.
 Any journal used for recording and posting transactions of a similar type.
 The special journal that is used to record all receipts of cash.
 An information system principle requiring that the benefits from an activity in an accounting information system outweigh the costs of that activity.
 The component of an accounting system that keeps data in a form accessible to information processors.
 A journal used to record sales of merchandise on credit.
 A general ledger account, the balance of which (after posting) equals the sum of the balances of the accounts in a related subsidiary ledger
 An information system principle requiring that an accounting information system conform with a company's activities, personnel and structure.
 A journal used to record all purchases on credit
 A list of each customer from the accounts receivable ledger with their balances and the total.

Accepted Answer

The Answer of Cash receipts journal and Compatibility principle and is...

Question 12

Assume that a company using a purchases journal made an error in totaling the journal's columns. The error should be discovered:

Accepted Answer

A)   When the purchases journal is posted to the general ledger.
B)   When the trial balance is prepared.
C)   When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.
D)   When the creditors receive their payments.
E)   When the financial statements are prepared.F) C) and E)
G) C) and D)

Question 13

A company returned merchandise to a supplier because it did not meet their specifications. This transaction would be recorded in which of the following journals?

Accepted Answer

A)   Sales journal
B)   Purchases journal
C)   Cash disbursements journal
D)   Cash receipts journal
E)   General journalF) A) and B)
G) C) and E)

Question 14

An approach that enters and processes data as soon as source documents are available is called:

Accepted Answer

A)   Date storage
B)   Batch processing
C)   Online processing
D)   Computer programming
E)   Web communicationF) B) and E)
G) B) and D)

Question 15

In a typical sales journal, you would expect to see the following columns:

Accepted Answer

A)   Sales dr.
B)   Sales cr.
C)   Purchases dr. (if periodic method used) .
D)   Inventory dr. (if perpetual method used) .
E)   Cost of Goods Sold cr. (if perpetual used) .F) B) and C)
G) A) and B)

Question 16

Williams Company began business on May 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May:
  a. Use the purchases journal and the cash disbursements journal to record these transactions
b. Prepare a schedule of accounts payable as of May 7. There were no accounts payable on May 1.

Accepted Answer

The answer of Williams Company began business on May 1....

Question 17

Input devices include:

Accepted Answer

A)   Bar-code readers
B)   Printers
C)   Software
D)   Ledgers
E)   Database filesF) A) and B)
G) B) and D)

Question 18

Computer networks are links among computers giving different users and different computers access to common databases and programs.

Accepted Answer

A) True 
 B)False  True

Question 19

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Accepted Answer

The answer of _______________________ are links among computers giving different...

Question 20

The control principle for accounting information systems requires that the:

Accepted Answer

A)   Benefits from an activity outweigh the costs of the activity.
B)   System report useful, understandable, timely, and pertinent information for effective decision making.
C)   System aid managers in controlling and monitoring business activities.
D)   System adapt to changes in the company, business environment, and needs of decision makers.
E)   System conform with a company's activities, personnel, and structure.F) A) and D)
G) C) and D)

Exam 17: Accounting With Special Journals

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Correct Answer
verified
Under the perpetual inventory system, th...
View Answer

Segment return on assets is segment operating income divided by segment average assets.

Correct Answer
verified

_____________________________________ consist of people, records, methods and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Correct Answer
verified
Accounting...
View Answer

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals:

Correct Answer
verified
11eae782_7fd5_e434_af74_094d80837345_TB2396_00 11eae782_7fd5_e435_af74_5f4b65808287_TB2396_00

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Correct Answer
verified

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Correct Answer
verified

Using __________________ ledgers removes unnecessary details from the general ledger.

Correct Answer
verified
subsidiary

When a company uses special journals, the general journal is used for selected transactions and events including:

Correct Answer
verified

Internal control procedures do not include:

Correct Answer
verified

A customer who had purchased $75,000 worth of merchandise on account returns 5% of this order to the seller because he is not satisfied with the quality of the goods. This transaction would be recorded in which journal if historically the seller has had very few returns of this nature?

Correct Answer
verified

Match the following definitions with the appropriate term(s):

Assume that a company using a purchases journal made an error in totaling the journal's columns. The error should be discovered:

Correct Answer
verified

A company returned merchandise to a supplier because it did not meet their specifications. This transaction would be recorded in which of the following journals?

Correct Answer
verified

An approach that enters and processes data as soon as source documents are available is called:

Correct Answer
verified

In a typical sales journal, you would expect to see the following columns:

Correct Answer
verified

Correct Answer
verified

Input devices include:

Correct Answer
verified

Computer networks are links among computers giving different users and different computers access to common databases and programs.

Correct Answer
verified
True

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Correct Answer
verified

The control principle for accounting information systems requires that the:

Correct Answer
verified

Exam 17: Accounting With Special Journals

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Correct AnswerverifiedUnder the perpetual inventory system, th...View AnswerShow Answer

Segment return on assets is segment operating income divided by segment average assets.

Correct AnswerverifiedShow Answer

_____________________________________ consist of people, records, methods and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Correct AnswerverifiedAccounting...View AnswerShow Answer

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals:

Correct Answerverified11eae782_7fd5_e434_af74_094d80837345_TB2396_00 11eae782_7fd5_e435_af74_5f4b65808287_TB2396_00

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Correct AnswerverifiedShow Answer

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Correct AnswerverifiedShow Answer

Using __________________ ledgers removes unnecessary details from the general ledger.

Correct Answerverifiedsubsidiary

When a company uses special journals, the general journal is used for selected transactions and events including:

Correct AnswerverifiedShow Answer

Internal control procedures do not include:

Correct AnswerverifiedShow Answer

A customer who had purchased $75,000 worth of merchandise on account returns 5% of this order to the seller because he is not satisfied with the quality of the goods. This transaction would be recorded in which journal if historically the seller has had very few returns of this nature?

Correct AnswerverifiedShow Answer

Match the following definitions with the appropriate term(s):

Assume that a company using a purchases journal made an error in totaling the journal's columns. The error should be discovered:

Correct AnswerverifiedShow Answer

A company returned merchandise to a supplier because it did not meet their specifications. This transaction would be recorded in which of the following journals?

Correct AnswerverifiedShow Answer

An approach that enters and processes data as soon as source documents are available is called:

Correct AnswerverifiedShow Answer

In a typical sales journal, you would expect to see the following columns:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Input devices include:

Correct AnswerverifiedShow Answer

Computer networks are links among computers giving different users and different computers access to common databases and programs.

Correct AnswerverifiedTrue

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Correct AnswerverifiedShow Answer

The control principle for accounting information systems requires that the:

Correct AnswerverifiedShow Answer

Correct Answer
verified
Under the perpetual inventory system, th...
View Answer

Correct Answer
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Correct Answer
verified
Accounting...
View Answer

Correct Answer
verified
11eae782_7fd5_e434_af74_094d80837345_TB2396_00 11eae782_7fd5_e435_af74_5f4b65808287_TB2396_00

Correct Answer
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Correct Answer
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subsidiary

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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