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Exam 7: Accounting Information Systems

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Question 31

Multiple Choice

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Principles of an efficient and effective accounting information system include all of the following except

A) cost effectiveness.
B) flexibility.
C) useful output.
D) All of these answer choices are principles.

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Question 32

Multiple Choice

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A subsidiary ledger frees the general ledger from details of

A) individual balances.
B) external transactions.
C) internal transactions.
D) the control account.

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Question 33

Multiple Choice

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An (x) below the "Other Accounts" column in a cash receipts journal indicates the

If a company maintains special journals sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.

Only transactions that cannot be entered in a _______________ journal are recorded in the _______________ journal.

Entries in the purchases journal are made

Cross-footing a cash receipts journal means

Maldanado Company has a balance in its Accounts Payable control account of $10500 on January 1 2016. The subsidiary ledger contains three accounts: Smith Company balance $3000; White Company balance $2500 and Marino Company. During January the following payable-related transactions occurred. $\begin{array} { l c c c } & \text { Purchases } & \text { Payments } & \text { Returns } \\\hline\text { Smith Company } & \$ 8,500 & \$ 6,000 & \$ - 0 - \\\text { White Company } & 5,250 & 2,500 & 1,500 \\\text { Marino Company } & 6,100 & 6,250 & - 0 -\end{array}$ Instructions (a) What is the January 1 balance in the Marino Company subsidiary account? (b) What is the January 31 balance in the control account? (c) Compute the balances in the subsidiary accounts at the end of the month. (d) Which January transaction would not be recorded in a special journal?

Which of the following is not a basic principle of designing and developing an effective accounting information system?

Match the items below

On September 30 after all monthly postings had been completed the Accounts Receivable control account in the general ledger had a debit balance of $245000; the Accounts Payable control account had a credit balance of $109000. The October transactions recorded in the special journals are presented below. Instructions Compute the balances of the (1) Accounts Receivable and (2) Accounts Payable control accounts after the monthly postings on October 31.

Postings are made daily to subsidiary ledgers so that

Corona Company uses a sales journal a cash receipts journal and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 65% of the sales price. July 2 Sold merchandise for $18000 to M. Jordan on account. Credit terms 1/10 n/30. Sales invoice No. 100. July 5 Received a check for $1300 from K. Bryant in payment of his account. July 8 Sold merchandise to S. O'Neal for $900 cash. July 10 Received a check in payment of Sales invoice No. 100 from M. Jordan minus the 1% discount. July 15 Sold merchandise for $7000 to K. Jabbar on account. Credit terms 1/10 n/30. Sales invoice No. 101. July 18 Borrowed $15000 cash from Pacific Bank signing a 6-month 10% note. July 20 Sold merchandise for $12000 to J. West on account. Credit terms 1/10 n/30. Sales invoice No. 102. July 25 Issued a credit (reduction) of $760 to J. West as an allowance for damaged merchandise previously sold on account. July 31 Received a check from K. Jabbar for $5500 as payment on account.

Shown below is a page from a special journal. 1. What is the name of this journal? 2. Give an explanation for each of the transactions in this journal. 3. Explain the following: (a) the numbers under the bottom lines. (b) the checks entered into the Post. Ref. column. (c) the numbers 113 and 416 in the Post. Ref. column. (d) the (x) below the Other Accounts column. 11eb1392_1bea_af6a_8021_958fa69abcab

If a company records merchandise it returns to suppliers in the general journal then

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Proving the equality of the totals in the columns of multiple-column special journals is called

All of the column totals in the cash receipts journal are posted to general ledger accounts except the

Enterprise resource planning systems integrate all aspects of the organization including accounting sales human resource management and manufacturing.

Accounts Receivable and Accounts Payable are examples of