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Exam 5: Accounting Systems

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Question 21

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Explain what subsidiary ledgers are and give examples of three types of subsidiary ledgers that a business might use.

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A subsidiary ledgers groups a large numb...

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Question 22

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Which of the following is not an advantage of a computerized system over a manual system?

A) transactions are recorded and posted at the same time
B) accuracy is usually better with a computerized system
C) current balances are always available
D) internal controls are optional to the computerized system

E) A) and D)
F) B) and C)

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Question 23

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A cash purchase of supplies should be recorded in the

The cash receipts journal will be used for

The following purchase transactions occurred during August for Backcountry Kayak Company. Aug. 1 $~~~~~~$ Purchased kevlar kayaks for $5,600 on account from Gear Inc. Aug. 6 $~~~~~~$ Purchased kevlar kayaks for $3,250 on account from Southland Company Aug. 14 $~~~~~$ Purchased kayak paddles for $2,500 on account from Gear Inc. Record these transactions in a purchase journal.

A computerized accounting system will not allow which of the following type of journalizing error?

The revenue journal is to make it more efficient to record sales transactions made for cash.

Analysis of user needs is the final phase in the creation or revision of an accounting system.

The primary ledger containing all the balance sheet and income statement accounts is the

The total on the "Accounts Payable Creditors Balances" report at January 31, the end of the first month of operations, agrees with the total of the Accounts Payable debit column in the cash payments journal for the same period.

Which of the following could not be considered a business segment?

Services performed for cash should be recorded in the

When there are a large number of individual accounts with a common characteristic, it is common to place them in a separate ledger called a(n)

A controlling account is used to record the details of the individual accounts.

The account for each supplier of merchandise will appear in the accounts payable subsidiary ledger.

The post reference column of the revenue journal will reference the account number of the customer.

Generally, subsidiary ledgers are used for accounts that consist of a large number of individual items.

When posting a column total in the purchases journal, a credit should be posted to

After an accounting system has been set up, what is the next step?

Which transaction is normally recorded in a special journal?