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Exam 17: Accounting With Special Journals

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Question 31

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A company records its transactions and events in four special journals and a general journal (perpetual inventory method). The columns of these journals are numbered as follows: Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s) of the columns in which the debit(s) would appear in the column labeled "Debits" below and by inserting the number(s) of the columns in which the credits would appear in the column labeled "Credits" below.

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Question 32

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The __________________ principle requires that an accounting information system report useful, understandable, timely, and pertinent information for effective decision making.

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Question 33

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Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

To check for accuracy after posting: first a trial balance is completed, then the subsidiary ledgers are tested by preparing a schedule of the controlling account.

A typical sales journal is used to record cash sales.

Posting debits from the sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

The ledger that contains the financial statement accounts of a company is the:

______________________ provide the basic information processed by an accounting system and can include bank statements, billings to customers, and employee earnings records.

A _______________________________________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

A subsidiary ledger is a listing of individual accounts with a common characteristic.

A company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. A perpetual inventory system is used. The following transactions were completed by the company during the current month of October: Record these transactions in the appropriate journal shown below:

The accounts payable ledger is used for storing transactions data regarding individual customers.

Individual transactions in the sales journal are regularly posted to customer accounts in the accounts payable ledger.

A company entered into the following transactions. For each transaction, indicate the appropriate journal in which it would be recorded.

____________________ are the means to take information out of an accounting system and make it available to users.

______________________ capture information from source documents and enable its transfer to the system's information processing component.

Match the situations below to the accounting information system principle that identify them.

A company borrowed money from the bank and signed a long-term note payable. This transaction would be recorded in which of the following journals?

External users of financial statements are generally uninterested in segment information to understand a company's business activities.