Info
Warning
Danger

Study Resources (Accounting)

11) Manual accounting systems are never used in real life. 12) With a computerized accounting system, the accounting cycle has several additional steps. 13) In an computerized accounting system the posting to the general accounts ledger is done automatically. 14) Cash in the chart of accounts is an example of a control.
3 Views
View Answer
41) Hardware is the electronic equipment that includes: A) computers, monitors, printers and the network B) disk drives, software, and servers C) servers, databases, and software D) servers and software only 42) Inputs would include: A) sales receipts B) an income statement C) a balance sheet D) a statement of owner's equity 43) Outputs would include: A) fax orders B) sales receipts C).
5 Views
View Answer
42) All of the following are parts of the internal control characteristic referred to as separation of duties except separation of: A) external auditors from accounting B) duties within the accounting function C) the custody of assets from accounting for those assets D) operations from accounting 43) Persons who authorize transactions should not handle the.
3 Views
View Answer
1) Internal controls are the methods and procedures used to safeguard assets and eliminate waste. 2) The two basic components of a computerized accounting information system are the hardware and software. 3) Managers strive for an accounting system that offers maximum benefits at a minimum cost, known as a good cost/benefit relationship. 4).
6 Views
View Answer
135) Marvin Painting and Accessories reports the following transactions for the month of March. May 2Purchased inventory on credit from Paint Suppliers, terms 2/10 n/30, $5,000. 7Purchased supplies on credit from Office Wholesalers, terms 2/10 n/45, $650. 9Returned $2,700 of inventory purchased on April 2 to Paint Suppliers for full credit. 10Purchased office equipment on account.
3 Views
View Answer
132) Tom and Jerry Company uses special journals along with the general journal to record its daily transactions. Using the following abbreviations, identify the appropriate journal in which to record each transaction. Sales JournalS Purchases JournalP Cash Receipts JournalCR Cash Payments JournalCP General JournalG a)Sold merchandise on account, $5,800__________ b)A customer purchased additional inventory on account, credit terms.
2 Views
View Answer
Table 7-5   Accounts Payable Accounts Receivable Accumulated Amortization - Equipment Amortization Expense Cash Cost of Goods Sold Equipment Insurance Expense Interest Expense Interest Revenue Inventory Marvin Fish, Capital Marvin Fish, Withdrawals Prepaid Insurance Sales Wages Payable 140) Refer to Table 7-5 Put the accounts in the proper order for the chart of accounts, starting with the most liquid assets 141) Why is a well-structured chart of accounts.
4 Views
View Answer
73) Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost of the 20 units is $5 each. Current net realizable value is $4.75 per unit. Using the lower-of-cost-and-net -realizable-value rule to value inventory, the balance sheet would show ending inventory of: A) $5.00 B) $4.75 C) $95.00 D).
3 Views
View Answer
122) The following data are available for the month of April for Gore Company: April 1 inventory               120 units at $8.15 each April 10 purchase               200 units at $8.20 each April 20 purchase               410 units at $8.40 each April 25 purchase               310 units at $8.50 each Gore sold 630 units during April. Compute the value of.
2 Views
View Answer
138) Prepare any necessary journal entries based on the following data regarding the bank reconciliation prepared by Ragoon Services on May 31, 2010. a) Outstanding cheques amount to $1,650. b) The service charges for February amount to $35. c) Cheque #665 for $3,640 for the cash purchase of office equipment was erroneously recorded.
2 Views
View Answer
51) The final stage of data processing is the: A) posting of transactions to the accounts B) generation of the accounting reports C) batch processing of transactions D) preparation of the special journals 52) Posting the entries in the sales journal to the accounts receivable subsidiary ledger should be done: A) on a weekly basis B) only.
6 Views
View Answer
63) When inventory prices are declining, the FIFO method will generally yield a gross margin that is: A) FIFO does not generally cause a gross margin that is different from that of any other costing method. B) less than the weighted-average method C) equal to the gross margin of the weighted-average method D) higher.
4 Views
View Answer
1) Internal control is the organizational plan that companies use to protect their assets and records. 2) Safeguarding the assets the business uses in its operations is the sole purpose of an effective system of internal control. 3) It is necessary for  the owners and top managers to demonstrate the importance of.
12 Views
View Answer
81) Entries in the purchases journal are posted to the: A) general ledger only B) general ledger and the accounts payable subsidiary ledger C) accounts payable subsidiary ledger and the purchases ledger D) accounts payable subsidiary ledger only 82) A document issued by a seller to credit a customer's account for returned merchandise is referred.
3 Views
View Answer
125) State which inventory method would best meet the specific goal of management stated below. Show your answer by inserting the proper letter beside each statement. a) FIFO b) Specific-unit-cost c) Weighted-average __________1)Management desires to precisely match cost of goods sold with net sales revenue. __________2)Management desires to minimize the company's ending inventory balance during.
2 Views
View Answer
31) An effective accounting information system: A) allows employees flexibility in setting the working hours B) guarantee a company will not go bankrupt C) includes control, compatibility, flexibility, and a favourable cost/benefit relationship D) promote operational efficiency E) will prevent fraud in all cases 32) Accounting information systems cope with heavy transaction loads by: A) computerization and.
3 Views
View Answer
134) Refer to Table 6-5  Calculate gross margin for Kruger Sales assuming the weighted-average cost method is being used and a periodic inventory system. 135) Refer to Table 6-5  Calculate ending inventory for Kruger Sales assuming the periodic FIFO cost method is being used. 136) Refer to Table 6-5  Calculate gross profit.
2 Views
View Answer
Match the following.   A) petty cash B) electronic funds transfer C) bank statement D) internal control E) internal auditor F) external auditors G) bank reconciliation H) nonsufficient funds cheque I) deposit in transit J) cheque K) cash short and over L) outstanding cheque M) an audit   116) Organizational plan and integrated framework that managers use to keep the business under control 117) A cheque for.
2 Views
View Answer
128) The following data are available for Wood Products Company for 2010: Sales revenue$400,500 January 1 inventory at cost 110,600 Purchases275,000 December 31 inventory at cost98,000 The current net realizable value of the inventory on December 31 is $93,500. Compute gross margin for Wood Products Company assuming the use of the lower-of-cost-and-net realizable value rule.
3 Views
View Answer
93) If a company uses a periodic inventory system, which of the following entries is required to record the sale of merchandise on credit? A) Accounts Receivable Sales Revenue B) Purchases Cost of Goods Sold C) Cost of Goods Sold Purchases D) Accounts Payable Sales Revenue 94) Given the following data, what is cost of goods sold? Sales revenue  $950,000 Beginning.
3 Views
View Answer
132) Classify each of the following reconciling items of the Tic and Tac Company as: a) an addition to the bank balance b) a deduction from the bank balance c) an addition to the book balance d) a deduction from the book balance e) not a reconciling item ________1.              Bank service charges ________2.              Bookkeeper recorded.
2 Views
View Answer
52) A system that relies on electronic communications, not paper documents, to transfer cash is known as: A) electronic remittance B) electronic funds transfer C) electronic mail D) electronic imaging 53) Which of the following would be a reconciling item on the bank side of the reconciliation? A) collection of note receivable for $1,000 B) nonsufficient funds.
2 Views
View Answer
117) Describe the five features of a good accounting information system and give an example of each. 118) What are the benefits of studying a manual  accounting system given that  most companies have computerized accounting systems? 119) Describe the benefits of a computerized accounting system versus a manual accounting system 120).
2 Views
View Answer
119) The following data pertain to Cross Company (assume a perpetual inventory system) for the month ended January 31, 2010: DateDescriptionUnitsUnit Cost                    Unit Selling Price Jan.1Beg.Inventory10 $50 5 Purchase2552 10Sale(6)$80 16Sale(10)82 20Purchase 1255 25Sale (20)85 Required: 1. Compute the cost of goods sold and ending inventory under FIFO. 2. Compute Gross Margin under FIFO 120) The following data pertain.
2 Views
View Answer
71) Referring to Table 7-1, how would this transaction be recorded in Pro's cash receipts journal if payment is made on April 15? A) debit Cash $2,800; credit Accounts Receivable-Carter Company $3,000 B) debit Cash $2,800; credit Accounts Receivable-Carter Company $2,800 C) debit Cash $2,800; credit Accounts Receivable-Carter Company $3,000 and Sales Discounts.
2 Views
View Answer
129) Define internal control. Who is responsible for establishing an effective system of internal control? What is the major constraint of any system of internal control? 130) List at least five characteristics of an effective system of internal control. What is one inherent limitation/weakness of any system of internal control? 131) In.
2 Views
View Answer
32) All of the following are purposes of internal control except to: A) safeguard assets B) promote operational inefficiency C) prevent and detect error and fraud D) ensure accurate and reliable accounting records 33) Internal control does not: A) help safeguard the assets a business uses in its operations B) guarantee a company will not go bankrupt C).
3 Views
View Answer
62) The following data are available for Remas Designs for October: Book balance, October 31$5,600 Outstanding cheques584 Deposits in transit2,500 Service charges75 Interest revenue25 What is the adjusted book balance on October 31 for Remas Designs based on the above data? A) $5,500 B) $5,550 C) $7,466 D) $4,966 63) The Calder Company received a bank statement showing a balance of.
2 Views
View Answer
121) A business that purchases on account must have good accounts payable records to ensure that purchase discounts are not being forgotten and to keep good business relationship with suppliers.  What is the name of detailed record of amounts payable to individual suppliers? 122) The total of the accounts receivable subsidiary.
3 Views
View Answer
139) Refer to Table 6-5  Calculate ending inventory for Kruger Sales assuming the perpetual FIFO cost method is being used. 140) Refer to Table 6-5  Calculate gross margin for Kruger Sales assuming the perpetual FIFO cost method is being used. 141) Both Canadian GAAP for private enterprises and international financial reporting standards.
4 Views
View Answer
Match the following.   A) gross margin method B) conservatism C) consistency characteristic D) periodic inventory system E) retail method F) lower-of-cost-and-net realizable-value rule G) gross profit H) disclosure principle I) materiality J) specific-unit-cost method K) FIFO L) perpetual inventory system   105) A rule that requires an asset be reported in the financial statements at whichever is lower, its historical cost or its net.
3 Views
View Answer
135) Using the following data, compute the book balance for Backwater Services before the preparation of a bank reconciliation on May 31, 2010: - The bank statement reveals a balance of $5,642. -Outstanding cheques on May 31, 2011, amount to $4,620 -The bank statement indicates service charges of $36. - Deposits in transit on.
2 Views
View Answer
131) The following data are available for three products of the Classic Company: ABC Beginning inventory$ 5,000 $20,000$15,000 Purchases45,000 65,00062,000 Goods available for sale50,00085,00077,000 Ending inventory18,00013,0009,000 Cost of goods sold32,00072,00068,000 You discover the following errors: a) Ending inventory for product A was overstated by $6,000. b) Ending inventory for product B was understated by $5,000. c) Beginning inventory for product.
3 Views
View Answer
91) Ruby Company purchased inventory from Diamond Company, and received a credit memo from Diamond Company. Diamond Company had charged Ruby Company $3.85 rather than $3.58 for each of the 100 items ordered. What entry will Ruby Company make assuming it is using a perpetual inventory system? A) Sales Returns and.
2 Views
View Answer
21) Separation of duties and responsibilities is essential in the control procedures for both cash receipts and cash disbursements. 22) Cashiers and mailroom employees who handle cash do not have access to the accounting records. Accountants who record cash receipts have on opportunity to handle cash. This is an internal control.
5 Views
View Answer
141) Using the following information, record journal entries that would be necessary after preparing the bank reconciliation for Johnson Brothers. All items will not require an entry. a) The book balance is $5,895.62. b) Outstanding cheques total $1,233.25. c) The bank service charge based on the bank statement is $50. d) A customer's cheque.
2 Views
View Answer
83) If ending inventory for the current accounting period is overstated by $3,500: A) net income for the current period will be overstated by $3,500 B) ending inventory for the next period will be overstated by $3,500 C) cost of goods sold for the current period will be overstated by $3,500 D) owner's equity.
4 Views
View Answer
Match the following. A) subsidiary ledger B) special journal C) general journal D) database E) control account F) software G) credit memo H) accounting information system I) menu J) sales journal K) debit memo L) network M) on-line processing N) inputs O) batch processing 101) Set of programs or instructions that cause the computer to perform the work desired 102) The combination of personnel, records, and procedures.
2 Views
View Answer
144) Discuss the characteristics of an effective system of internal control for cash payments by cheque. Include the specifics for a purchase of merchandise for resale. 145) On August 1, 2010, Rubble Station established a $350 petty cash fund. At the end of August, the petty cash fund contained: - Cash on.
2 Views
View Answer
Table 7-3   Accounts payable Accounts receivable Accumulated amortization Cash Equipment  Gasoline expense  Martin Mann, Capital Martin Mann, Withdrawals Notes payable  Salary payable     Service revenue Supplies 138) Refer to Table 7-3 Put the accounts in the proper order for the chart of accounts, starting with the most liquid assets Table 7-4   Accounts Payable Accounts Receivable Accumulated Amortization - Factory Amortization.
4 Views
View Answer