Question 1

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 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

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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.

Question 13

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 14

Spreadsheets are ideally suited to preparing budgets.

Accepted Answer

A) True 
 B)False  True

Question 15

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 16

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 17

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 18

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 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

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

Exam 7: Accounting Information Systems

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
verified

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

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

Correct Answer
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B

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

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

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

Correct Answer
verified

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

Correct Answer
verified

With a manual accounting system,adjusting and closing entries:

Correct Answer
verified

Each cell in a spreadsheet is defined by:

Correct Answer
verified

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

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

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

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

Spreadsheets are ideally suited to preparing budgets.

Correct Answer
verified
True

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

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

Correct Answer
verified

The three stages of data processing are:

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

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

Correct Answer
verified

Exam 7: Accounting Information Systems

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

With a manual accounting system,adjusting and closing entries:

Correct AnswerverifiedShow Answer

Each cell in a spreadsheet is defined by:

Correct AnswerverifiedShow Answer

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

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

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

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

Spreadsheets are ideally suited to preparing budgets.

Correct AnswerverifiedTrue

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

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

Correct AnswerverifiedShow Answer

The three stages of data processing are:

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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B

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True

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C

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