Chapter 5: Accounting Systems
61.
The subsidiary ledger that includes customer account activity is called the
a.
asset ledger
b.
accounts payable ledger
c.
expense ledger
d.
accounts receivable ledger
62.
Every controlling account must have its own
a.
revenue ledger
b.
general ledger
c.
subsidiary ledger
d.
journal
63.
At the end of the month, the total of the amount column of the revenue journal is posted as a
a.
debit to Accounts Receivable and a credit to Cash
b.
debit to Accounts Receivable and a credit to Fees Earned
c.
debit to Cash and a credit to Fees Earned
d.
debit to Cash and a credit to Accounts Payable
Chapter 5: Accounting Systems
64.
The controlling account in the general ledger that summarizes the individual customer accounts in the
subsidiary
ledger is entitled
a.
Purchases
b.
Accounts Payable
c.
Fees Earned
d.
Accounts Receivable
65.
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.
general ledger
b.
income statement ledger
c.
group ledger
d.
subsidiary ledger
66.
A purchase of supplies for cash is recorded in the
a.
revenue journal
b.
purchases journal
c.
cash receipts journal
d.
cash payments journal
Chapter 5: Accounting Systems
67.
A purchase of supplies on account is recorded in the
a.
revenue journal
b.
general journal
c.
purchases journal
d.
cash payments journal
68.
Which of the following transactions is recorded in the purchases journal?
a.
purchase of store supplies on account
b.
return of damaged office equipment
c.
purchase of store supplies for cash
d.
purchase of office equipment for cash
69.
When posting column totals in the purchases journal, a credit should be posted to
a.
Merchandise Inventory
b.
Accounts Payable
c.
Sales Returns and Allowances
d.
Cash
Chapter 5: Accounting Systems
70.
In which journal would an adjustment for an overcharge by a creditor be recorded?
a.
general journal
b.
purchases journal
c.
cash payments journal
d.
cash receipts journal
71.
Which of the following transactions is recorded in the revenue journal?
a.
sale of excess office equipment for cash
b.
rendering services for cash
c.
rendering services on account
d.
sale of excess office equipment on account
72.
Each individual entry in the revenue journal is posted to
a.
the accounts receivable controlling account
b.
the accounts receivable subsidiary ledger
c.
the revenue controlling account
d.
the accounts receivable subsidiary ledger and the controlling account
Chapter 5: Accounting Systems
73.
Which of the following is always recorded in the general journal?
a.
services rendered for cash
b.
correction of error in billing client
c.
purchases of equipment on account
d.
purchases of equipment for cash
74.
Which of the following is always recorded in the general journal?
a.
rendering services for cash
b.
purchases of supplies on account
c.
rendering services on account
d.
closing entries
75.
Which of the following is recorded in the cash receipts journal?
a.
cash withdrawn by the owner
b.
cash purchase of equipment
c.
cash received on customer’s account
d.
adjusting entry for depreciation
Chapter 5: Accounting Systems
76.
Services performed for cash should be recorded in the
a.
revenue journal
b.
purchases journal
c.
cash receipts journal
d.
cash payments journal
77.
Which of the following is recorded in the cash payments journal?
a.
adjusting entry for accrued salaries
b.
receipt of cash on supplies returned
c.
receipt of cash from services rendered
d.
payment of employees’ salaries
78.
A cash payments journal would not include a
a.
Cash credit column
b.
Sales Discounts credit column
c.
Accounts Payable debit column
d.
Other Accounts debit column
Chapter 5: Accounting Systems
79.
In which journal is the return of supplies purchased on account recorded?
a.
general journal
b.
cash receipts journal
c.
cash payments journal
d.
purchases journal
80.
A cash purchase of supplies should be recorded in the
a.
cash receipts journal
b.
purchase journal
c.
general journal
d.
cash payments journal
81.
When posting the column totals of a cash payments journal, a debit should be posted to
a.
Cash
b.
Accounts Payable
c.
Sales Discounts
d.
Unearned Revenue
Chapter 5: Accounting Systems
82.
In which journal is the receipt of a promissory note from a customer on account recorded?
a.
revenue journal
b.
cash receipts journal
c.
general journal
d.
purchases journal
83.
Subsidiary ledgers
a.
are used only for Accounts Payable and Accounts Receivable
b.
may be used for various general ledger accounts
c.
may be used only for the Cash account
d.
are never used for more than four accounts
84.
Some of the more common subsidiary ledgers are
a.
accounts payable, accounts receivable, and owner’s equity subsidiary ledgers
b.
accounts receivable and accounts payable subsidiary ledgers
c.
accounts receivable, accounts payable, cash, checking, petty cash, and owner’s equity subsidiary ledgers
d.
cash and owner’s equity subsidiary ledgers
Chapter 5: Accounting Systems
85.
If the individual subsidiary ledger accounts contained the following data:
Cadence Company – Vendor – $200 – credit balance
Franklin Enterprises – Customer – $750 – debit balance
Marcelo Construction – Client – $125 – debit balance
Peyton Supplies – Supplier – $375 – credit balance
The accounts receivable (A/R) control account and the accounts payable (A/P) control account balances would be:
a. A/R – $1,375, A/P – $375
b. A/R – $525, A/P – $175
c. A/R – $875, A/P – $575
d. A/R – $750, A/P – $700
86.
Which of the following is not considered a special journal?
a.
purchases journal
b.
cash receipts journal
c.
general journal
d.
cash payments journal
87.
Which of the following journals is called an all-purpose journal?
a.
general journal
b.
purchases journal
c.
revenue journal
d.
accounting journal
Chapter 5: Accounting Systems
88.
Which of the following is true about the revenue journal?
a.
Cash revenues and revenues on account are recorded in the revenue journal.
b.
Only cash revenues are recorded in the revenue journal.
c.
Only revenues on account are recorded in the revenue journal.
d.
Unearned revenues are also recorded in the revenue journal.
89.
The cash receipts journal will be used for
a.
only cash received from customers on account
b.
all cash received for any purpose
c.
cash received from customers on account and cash sales
d.
only cash received from cash sales
90.
An “Accounts Receivable Customer Balances” report shows
a.
revenues by customer for a specified date range
b.
customer balances owed as of a specific date
c.
cash payments to creditors for a specific date range
d.
sales by customer as of a specific date
Chapter 5: Accounting Systems
91.
A cash investment made by the owner should be recorded in the
a.
cash receipts journal
b.
purchases journal
c.
cash payments journal
d.
revenue journal
92.
A withdrawal of cash made by the owner will be found in the
a.
cash receipts journal
b.
cash payments journal
c.
revenue journal
d.
purchases journal
93.
An owner transfers a personal automobile to the company with a fair market value of $12,000. The entry will
be
made in the
a.
purchases journal
b.
cash payments journal
c.
cash receipts journal
d.
general journal
Chapter 5: Accounting Systems
94.
In which journal would adjusting entries be found?
a.
cash receipts journal
b.
cash payments journal
c.
general journal
d.
purchases journal
95.
In which journal would you find cash revenues recorded?
a.
cash payments journal
b.
general journal
c.
revenues journal
d.
cash receipts journal
96.
In which journal would the payment of salaries be posted?
a.
cash receipts journal
b.
special journal
c.
cash payments journal
d.
expense journal
Chapter 5: Accounting Systems
97.
The following cash receipts journal headings have been suggested for Tower Tree-Trimming Service
Company.
Which of the following statements is false?
Date
Account
Debited
Post.
Ref.
Accounts
Receivable Cr.
Cash
Cr.
Other Accounts
Dr.
a.
The second column should be Account Credited.
b.
The Cash column should be a debit.
c.
The Other Accounts column should be a credit.
d.
The Accounts Receivable column should be a debit.
98.
Which of the following is not a special journal?
a.
cash receipts journal b. purchases journal
c. accounts receivable journal d. cash payments journal
99.
Which of the following general ledger accounts normally has a subsidiary ledger?
a.
Capital Stock b. Retained Earnings
c. Supplies d. Accounts Payable
Chapter 5: Accounting Systems
100.
Which transaction is normally recorded in a special journal?
a.
sales returns b. depreciation expense
c. purchases on account d. issued stock dividend
101.
An adjustment resulting from a creditor reducing the amount owed on an unpaid invoice due to an invoicing
error
would be recorded in the
a.
general journal
b.
purchases journal
c.
cash payments journal
d.
cash receipts journal
102.
If a company uses special journals
a.
it must have one for cash, receivables, and payables
b.
it may have no more than four
c.
the quantity and design depend on the needs of the company
d.
the design must comply with the FASB requirements
Chapter 5: Accounting Systems
103.
Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items.
The accountant has implemented a purchases journal. Which of the following columns should be included in
the
new purchases journal?
a.
Accounts Payable Cr., Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr.
b.
Accounts Payable Dr., Other Accounts Dr., Beverage Supplies Cr., Food Supplies Cr., Retain Items Cr.
c.
Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr., Cash Cr.
d.
Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Cr., Accounts Payable Dr.
104.
When using a purchases journal
a.
all cash and credit purchases are recorded in the journal
b.
posting to creditor accounts is only done at the end of the month
c.
the “Other Accounts” total is posted to Accounts Payable at month’s end
d.
there will always be an “Accounts Payable Cr.” column
105.
When using a revenue journal
a.
separate “Fees Earned” and “Accounts Receivable” columns are included
b.
both cash sales and sales on account are recorded in the journal
c.
revenues are normally recorded when the company sends customer invoices
d.
postings to customer accounts are done at month’s end
Chapter 5: Accounting Systems
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
106.
Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash
receipts
journal in its operations. If the company records the cash sale of food for $18, which is the correct
entry?
a.
Cash Cr., $18; Food Revenue Dr., $18
b.
Cash Dr., $18; Food Revenue Dr., $18
c.
Cash Dr., $18; Food Revenue Cr., $18
d.
Cash Cr., $18; Food Revenue Cr., $18
107.
A basic manual accounting system includes all of the following except
a.
a chart of accounts
b.
a two-column journal
c.
a general ledger
d.
a computer on which the system runs
Chapter 5: Accounting Systems
108.
Which of the following statements is false?
a.
Most computerized accounting systems use principles from manual systems.
b.
Subsidiary ledgers and special journals are only useful when a business doesn’t have a large number of similar
transactions.
c.
Even small companies use computerized accounting systems.
d.
Large companies often integrate their accounting system with their automated business systems.
109.
A computerized accounting system will not allow which of the following types of journalizing errors?
a.
entering an amount in an incorrect account
b.
reversing the debit and credit accounts in a transaction
c.
processing a transaction that has unequal debits and credits
d.
entering a transaction with an incorrect date
110.
Computerized accounting systems
a.
are only used by medium- and large-sized companies
b.
are generally not as accurate as manual systems
c.
record and post transactions at the same time
d.
must make use of special journals
Chapter 5: Accounting Systems
111.
The total on the “Cash Receipts” report generated by QuickBooks software at January 31 would be equal to the
a.
total revenue earned for the month of January
b.
total of the purchases journal on January 31
c.
total of the Cash Dr. column of the cash receipts journal in a manual system
d.
balance in Accounts Receivable at January 31
112.
Put the following into the correct order for processing a sale on account with QuickBooks.
A.
Prepare reports.
B.
Record the sale by completing an electronic invoice form.
C.
Record collection of payment by completing a “receive payment” form.
a.
B-C-A
b.
A-B-C
c.
B-A-C
d.
C-B-A
113.
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.
Chapter 5: Accounting Systems
114.
A recent trend in which the accounting system and data are stored and distributed over the Internet by a third-party is
called
a.
supply chain management.
b.
cloud software solutions.
c.
customer management.
d.
life-cycle computing.
115.
Month-end postings to control accounts in a computerized accounting system are not required because
a.
control accounts are not used in computerized systems
b.
transactions are posted to accounts immediately
c.
the input operator can choose to post to accounts at any time
d.
transactions are posted at the end of the financial year
116.
Computerized accounting systems
a.
provide a tedious form of record keeping
b.
improve the timeliness of reporting
c.
prevent all journalizing errors
d.
are only used in medium and large businesses
Chapter 5: Accounting Systems
117.
What is meant by the term B2C?
a.
balance to cash
b.
business to cash
c.
book to capital
d.
business to consumer
118.
In addition to B2B and B2C transactions, the Internet is commonly used in all of the following business activities
except
a.
supply chain management b. regulatory compliance management
c. customer relationship management d. product life cycle management
119.
When Richard Miller purchases a fishing pole through Amazon.com, he is utilizing
a.
B1C e-commerce.
b.
B2B e-commerce.
c.
B2C e-commerce.
d.
B1B e-commerce.