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99)
The main difference in the sales journal under the perpetual and periodic inventory system is:
A)
The sales tax payable column is used under the perpetual system but not the periodic.
B)
The column for recording cash is used under the perpetual system but not the periodic.
C)
The sales tax receivable column is used under the perpetual system but not the periodic.
D)
The perpetual system has a column to record cost of goods sold but the periodic system does
not.
E)
The accounts receivable column is used under the perpetual system but not the periodic.
100)
The accounting principle that prescribes an accounting information system conform with a
company's activities, personnel, and structure is the:
A)
Control principle.
B)
Compatibility principle.
C)
Cost-Benefit principle.
D)
Flexibility principle.
E)
Relevance principle.
101)
All of the following statements regarding source documents are true except:
A)
Source documents can include Web communications.
B)
Source documents can be paper or electronic files.
C)
Source documents provide the basic information processed by an accounting system.
D)
Source documents should not be sent directly from a company's system to its customers or
suppliers.
E)
Source documents include invoices, cash register files, and employee earnings records.
102)
Which of the following statements regarding input devices is not true?
A)
Input devices include keyboards and scanners.
B)
Input devices capture information from source documents and enable its transfer to the
system's information processing component.
C)
Input devices make accounting system information available to users.
D)
Input devices convert data on source documents from written form to a form usable for the
system.
E)
Input devices include journal entries.
103)
A company would use which of the following journals to record cash payments?
A)
General journal.
B)
Sales journal.
C)
Cash disbursements journal.
D)
Cash receipts journal.
E)
Purchases journal.
104)
Which of the following journals would a company use to record a merchandise return?
A)
General journal.
B)
Purchases journal.
C)
Cash disbursements journal.
D)
Cash receipts journal.
E)
Sales journal.
105)
Which of the following journals would a company use to record cash collections from customers,
net of discounts taken?
A)
Cash receipts journal.
B)
General journal.
C)
Cash disbursements journal.
D)
Sales journal.
E)
Purchases journal.
106)
Which of the following journals would a company use to record period-end adjusting entries to
accrue revenues?
A)
Cash disbursements journal.
B)
Purchases journal.
C)
Cash receipts journal.
D)
Sales journal.
E)
General journal.
107)
For a retailer required to collect sales taxes from customers, all of the following adaptations would
be made to the sales journal except:
A)
A Sales Taxes Payable debit column would be added.
B)
There would be a separate Sales credit column.
C)
Column totals would continue to be posted as usual.
D)
A Sales Taxes Payable credit column would be added.
E)
There would be a separate Accounts Receivable debit column.
108)
The process of adding the Debit column totals, then the credit column totals of a journal and
comparing the two sums for equality is an example of:
A)
Reconciling.
B)
Journalizing.
C)
Footing.
D)
Crossfooting.
E)
Posting.
109)
A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the
transaction would be recorded in is the:
A)
Sales journal.
B)
Purchases journal.
C)
General journal.
D)
Cash disbursements journal.
E)
Cash receipts journal.
110)
A company makes a payment of $5,000 on a long-term note payable. The journal the transaction
would be recorded in is the:
A)
Cash receipts journal.
B)
General journal.
C)
Sales journal.
D)
Cash disbursements journal.
E)
Purchases journal.
111)
A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the
journal the transaction would be recorded in:
A)
Cash receipts journal.
B)
Purchase journal.
C)
General journal.
D)
Sales journal.
E)
Cash disbursements journal.
112)
A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal
that the transaction would be recorded in is the:
A)
Cash disbursements journal.
B)
Sales journal.
C)
Purchases journal.
D)
Cash receipts journal.
E)
General journal.
113)
If a company purchases $15,200 of merchandise on credit, which journal will the transaction be
recorded in?
A)
Purchases journal.
B)
General journal.
C)
Cash disbursements journal.
D)
Cash receipts journal.
E)
Sales journal.
114)
Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period.
Identify the journal the transaction would be recorded in:
A)
Purchases journal.
B)
Cash disbursements journal.
C)
Cash receipts journal.
D)
General journal.
E)
Sales journal.
115)
If a company issues a check for $2,900 in payment of merchandise, identify the journal the
transaction would be recorded in:
A)
Cash disbursements journal.
B)
Cash receipts journal.
C)
Purchases journal.
D)
General journal.
E)
Sales journal.
116)
Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the
transaction would be recorded in:
A)
General journal.
B)
Cash receipts journal.
C)
Cash disbursements journal.
D)
Purchases journal.
E)
Sales journal.
117)
If a company issues a check for $2,750 in payment of the salaries expense for the last half of the
month, the transaction will be recorded in which journal?
A)
Purchases journal.
B)
Sales journal.
C)
General journal.
D)
Cash receipts journal.
E)
Cash disbursements journal.
118)
A company that reports segment information had average total assets of $1,522,450 and total net
income of $590,700. Segment A had average total assets of $927,800 and segment operating
income of $298,300. Segment B had average assets of $594,650 and segment operating income of
$292,400. The segment return on assets for Segment A is:
A) 60.9%. B) 38.8%. C) 32.2%. D) 49.2%. E) 50.5%.
119)
A company that reports segment information had average total assets of $1,522,450 and total net
income of $590,700. Segment A had average total assets of $927,800 and segment operating
income of $298,300. Segment B had average assets of $594,650 and segment operating income of
$292,400. The segment return on assets for Segment B is:
A) 60.9%. B) 50.5%. C) 32.2%. D) 38.8%. E) 49.2%.
120)
Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost
of the games was $1,700. When recording the sales transaction in its sales journal, Maxie's would
enter:
A)
$1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cost of Goods
Sold Dr./Inventory Cr. column.
B)
$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods
Sold Dr./Inventory Cr. column.
C)
$2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.
D)
$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Accounts Payable
Dr./Purchases Cr. column.
E)
$1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Other Accounts
Dr. column.
121)
Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost
of the games was $1,700. When recording the collection from the customer made within the
discount period, in its cash receipts journal, Maxie's would enter:
A)
$2,600 in the Cash Dr. column. $2,600 in the Sales Cr. column, and $1,700 in the Cost of
Goods Sold Dr./Inventory Cr. column.
B)
$2,574 in the Cash Dr. column, $26 in the Sales Discount Dr. column and $2,600 in the
Accounts Receivable Cr. column.
C)
$2,574 in the Cash Dr. column and $2,574 in the Accounts Receivable Cr. column.
D)
$2,600 in the Cash Dr. column and $2,600 in the Accounts Receivable Cr. column.
E)
$2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.
122)
Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale.
The cost of the birdseed was $370. When recording the collection from the customer, in its cash
receipts journal, Wildlife would enter:
A)
$860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Cost of Goods
Sold Dr./Inventory Cr. column.
B)
$860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Other Accounts
Cr. column.
C)
$370 in the Cash Dr. column and $370 in the Accounts Receivable Cr. column.
D)
$860 in the Accounts Receivable Dr. column, $860 in the Cash Cr. column; and $370 in the
Cost of Goods Sold Dr./Inventory Cr. column.
E)
$860 in the Cash Dr. column and $860 in the Accounts Receivable Cr. column.
123)
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for
$15,300. Assume the company uses a perpetual inventory system, and records purchases using the
gross method. When recording the purchase transaction in its purchases journal, Farthington would
enter:
A)
$14,994 in the Inventory Dr. column and $14,994 in the Accounts Payable Cr. column.
B)
$15,300 in the Accounts Payable Cr. column and $15,300 in the Inventory Dr. column.
C)
$15,300 in the Accounts Payable Cr. column and $15,300 in the Supplies Dr. column.
D)
$15,300 in the Other Accounts Dr. column and $15,000 in the Inventory Cr. column.
E)
$15,300 in the Inventory Dr. column, $14,994 in the Accounts Payable Cr. column, and $306
in the Purchase Discount Cr. column.
124)
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for
$15,300. Assume the company uses a perpetual inventory system, and records purchases using the
gross method. When recording the payment of the invoice within the discount period in its cash
disbursement journal, Farthington would enter:
A)
$15,300 in the Accounts Payable Dr. column; $14,994 in the Cash Cr. column; and $306 in
the Inventory Cr. column.
B)
$14,994 in the Accounts Payable Dr. column and $14,994 in the Cash Cr. column.
C)
$15,300 in the Cash Cr. column and $15,300 in the Accounts Payable Dr. column.
D)
$15,300 in the Cash Cr. column and $15,300 in the Inventory Dr. column.
E)
$15,300 in the Inventory Cr. column; $14,994 in the Accounts Payable Dr. column; and $306
in the Inventory Cr. column.
125)
Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three
days later, the company returned $1,100 of the merchandise. When recording the return transaction,
the company would record:
A)
Debit Cash $1,100 and credit Inventory $1,100 in the general journal.
B)
$1,100 in the Accounts Payable Dr. column and $1,100 in the Cash Cr. column of the cash
disbursements journal.
C)
$1,100 in the Accounts Payable Cr. column and $1,100 in the Inventory Dr. column of the
purchases journal.
D)
$1,100 in the Cash Cr. column and $1,100 in the Inventory Cr. column in the cash
disbursements journal.
E)
Debit Accounts Payable $1,100 and credit Inventory $1,100 in the general journal.
58
SHORT ANSWER QUESTIONS
126)
Identify the accounting information system principle indicated in letters a-e that applies to each of the
situations below by entering the appropriate letter next to the statement.
1. International Company's accounting information system can be improved markedly for a cost of
about $10,000,000 and the company intends to complete the upgrade because the benefits outweigh
this cost.
2. International Company has world-wide operations that must handle thousands of different
products, so the accounting information system is fairly complex to conform to its activities,
personnel, and structure.
3. International Company has designed its accounting information system so that key managers can
obtain the information they need to make decisions relating to new products, sales, and controlling
costs.
4. International Company's accounting information system has policies to ensure that financial
reports will be reliable, assets are safeguarded, and relevant laws and regulations are complied with.
5. International Company has designed its accounting information system to be adaptable to
changes in technology, the business environment, and the needs of decision makers.
127)
Enter the letter of the following terms on the line next to the appropriate definition of each.
1. The component of an accounting system that is the means to take information from an accounting
system and make it available to users.
2. The means of collecting and processing data from transactions and events, organizing them into
useful reports, and communicating results to decision makers.
3. A record of the separate accounts of each supplier that supports its general ledger controlling
account.
4. The component of an accounting system that keeps data in a form accessible to information
processors.
5. The special journal used to record all receipts of cash.
6. The special journal that is used to record all cash payments.
7. The component of an accounting system that captures source document information and enables
its transfer to the information processor.
8. An information system principle that prescribes that an accounting system have methods and
procedures allowing managers to control and monitor business activities.
9. The special journal used to record all purchases made on account.
10. An information system principle requiring that an accounting system report useful,
understandable, timely, and pertinent information for decision making.
60
128)
Match the following accounting system components a-e with their related items 1-10 by placing the
correct letter next to each item.
a. Source documents
b. Input devices
c. Information processor
d. Information storage
e. Output devices
_____ 1. Computer keyboard
2. Computer hard drive
_____ 3. Journal entries
_____ 4. Journals
_____ 5. Financial statements
_____ 6. Invoice from suppliers
_____ 7. Employee paychecks
_____ 8. Computer monitor
_____ 9. Software
_____ 10. Electronic files
129)
Match the following terms with the appropriate definitions.
a. Sales journal
b. Controlling account
c. Accounts receivable ledger
d. Cash disbursements journal
e. Cash receipts journal
f. Schedule of accounts payable
g. Segment return on assets
h. Columnar journal
i. Special journal
j. Purchases journal
_____ 1. The special journal used to record all receipts of cash.
_____ 2. A journal with more than one column for recording data.
_____ 3. A record of the separate accounts of each credit customer that is controlled by a general
