Chapter 5: Accounting Systems
161.
Identify the three main advantages of a computerized accounting system over a manual accounting system.
162.
Define the meaning of the terms B2C and B2B as they relate to e-commerce.
163.
Describe and discuss e-commerce.
Chapter 5: Accounting Systems
164.
The Internet creates opportunities for improving the speed and efficiency of transactions. Name and describe three
key areas besides e-commerce where the Internet is being used for business purposes.
165.
Payton Company has the following segment revenues for the two most recent years.
Current Year
(in millions)
Prior Year
(in millions)
United States
$ 825.00
$ 600.00
Canada
325.50
345.50
Other countries
215.50
168.50
Total revenues
$1,366.00
$1,114.00
Prepare a horizontal analysis of the segment data.
Chapter 5: Accounting Systems
166.
Payton Company has the following segment revenues for the two most recent fiscal years.
Current Year
(in millions)
Prior Year
(in millions)
China
$ 775.00
$ 650.00
Canada
325.50
245.50
Other countries
215.50
168.50
Total revenues
$1,316.00
$1,064.00
Prepare a vertical analysis of the segment data.
Chapter 5: Accounting Systems
167.
Maximilian Corporation provided revenue disclosures for the current year by its major product segments in
the
notes to its financial statements as follows:
Major Product Segments
Current Year
(in millions)
Petroleum-based products
$10,450
Industrial chemicals
9,460
Refined chemical products
8,575
Food additives
7,325
Emulsifiers
6,900
Pesticides
5,870
Salts
4,545
Wetting agents
3,215
Total revenues
$56,340
Prepare a vertical analysis.
Petroleum-based products
Industrial chemicals
Refined chemical products
Food additives
Emulsifiers
Pesticides
Salts
Wetting agents
Total revenues
Chapter 5: Accounting Systems
168.
Eastwood Publishing reports the following segment data regarding its textbook sales:
Segment
Current Year
Prior Year
College textbooks
$ 78,000
$ 55,000
High school textbooks
129,000
115,000
Elementary school textbooks
105,000
121,000
Total textbook revenue
$312,000
$291,000
Perform a horizontal analysis and a vertical analysis for Eastwood Publishing Company. Round to one
decimal
place.
Chapter 5: Accounting Systems
169.
What is a business segment? How can business segments be analyzed?
170.
Mickey Co. does business in three regional segments: West, East, and Central. The following information is availabl
Segment
Current Year
(in thousands)
Prior Year
(in thousands)
East
$ 776,000
$ 664,000
West
824,000
596,000
Central
495,000
325,000
Total revenues
$2,095,000
$1,585,000
Prepare a horizontal analysis of the segment data. Round percentages to two decimal places.
Chapter 5: Accounting Systems
171.
123 Kids TV operates in five major international segments.
Segment
Current Year
(in millions)
Prior Year
(in millions)
United States
$ 9,132
$ 8,528
Canada
8,248
6,391
England
4,734
4,141
China
11,700
13,299
Brazil
5,645
6,391
Total revenues
$39,459
$38,750
Prepare a horizontal analysis of the segment data. Round percentages to two decimal places.
Chapter 5: Accounting Systems
172.
Connie and Jill operate Reardon’s Bakery which has the following segment revenues for the most recent two fiscal
years.
Prepare a vertical analysis. Round percentages to two decimal places.
Segment
Current Year
(in thousands)
Prior Year
(in thousands)
Cakes
$ 691,000
$ 662,000
Cupcakes
512,000
550,000
Desserts
417,000
468,000
Beverages
875,000
815,000
Total revenues
$2,495,000
$2,495,000
Cakes
Cupcakes
Desserts
Beverages
Total revenues
Chapter 5: Accounting Systems
173.
Minnie Co. does business in three segments: Theme Park, Movie Production, and Merchandise. The
following
information from the current year is available:
Segment
Current Year
(in thousands)
Prior Year
(in thousands)
Theme Parks
$ 776,000
$ 664,000
Movie Production
824,000
596,000
Merchandise
495,000
325,000
Total revenues
$2,095,000
$1,585,000
Prepare a vertical analysis of the segment data. Round percentages to two decimal places.
Theme Parks
Movies
Merchandise
Chapter 5: Accounting Systems
Match the transactions below with the journal or ledger in which it would be entered.
a.
purchases journal
b.
revenue journal
c.
cash receipts journal
d.
cash payments journal
e.
accounts receivable subsidiary ledger
f.
accounts payable subsidiary ledger
g.
general journal
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.05-02 – 05–02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.18 – Special Journals
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
174.
Monthly adjustment for supplies used
175.
Cash receipt posting to an individual customer account
176.
Record sale on account to customer
177.
Record purchase on account from vendor
178.
Record payment received from customer
179.
Record payment made to vendor
180.
Cash payment posting to an individual vendor account
Chapter 5: Accounting Systems
Match the following types of journal transactions with the journal in which it would be entered.
a.
cash receipts journal
b.
cash payments journal
c.
revenue journal
d.
purchases journal
e.
general journal
DIFFICULTY: Easy
Bloom’s: Knowledge
LEARNING OBJECTIVES: ACCT.WARD.16.05-02 – 05–02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.ACBSP.APC.15 – Current Assets Reporting
ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.ACBSP.APC.18 – Special Journals
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
181.
Sale on account
182.
Payment for supplies bought on account
183.
Adjusting entry
184.
Collection on account
185.
Equipment purchased on account
Chapter 5: Accounting Systems
Match each subsidiary ledger and general ledger posting to one of the descriptions of activities (a−e).
a.
Purchases on account
b.
Collections from customers on account
c.
Adjustment for expired insurance
d.
Payments to creditors on account
e.
Sales on account
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.05-02 – 05–02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.18 – Special Journals
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
186.
Accounts receivable subsidiary ledger / Accounts Receivable Dr.
187.
Accounts receivable subsidiary ledger / Accounts Receivable Cr.
188.
Accounts payable subsidiary ledger / Accounts Payable Cr.
189.
Accounts payable subsidiary ledger / Accounts Payable Dr.
190.
No subsidiary ledger posting
Chapter 5: Accounting Systems
The transactions completed by Franklin Company during January, its first month of operations, are listed
below.
Assume that Franklin Company uses the following journals: cash receipts (CR), cash payments
(CP), revenue (R),
purchases (P), and general (G). Assume that it uses accounts receivable and accounts
payable subsidiary ledgers
as well as a general ledger. Indicate by letters which journal would be used for
each transaction and whether or
not the entry requires a posting to a subsidiary ledger.
a.
CR, no subsidiary posting
b.
CP, no subsidiary posting
c.
R, no subsidiary posting
d.
P, no subsidiary posting
e.
G, no subsidiary posting
f.
CR, subsidiary posting
g.
CP, subsidiary posting
h.
R, subsidiary posting
i.
P, subsidiary posting
j.
G, subsidiary posting
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.05-02 – 05–02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.15 – Current Assets Reporting
ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.ACBSP.APC.18 – Special Journals
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
191.
Issued check for rent
192.
Purchased equipment on account
193.
Issued an invoice to a customer
194.
Received a check from a customer for payment on account
195.
Issued check for advertising expense
Chapter 5: Accounting Systems
196.
Issued check for a payment on account
197.
Issued check for purchase of supplies
198.
Issued check for salary
199.
Received cash for a sale
200.
Purchased supplies on account
201.
Purchased a computer for cash
202.
Paid for the equipment purchased on account
203.
Recorded the adjustment for supplies used during the month