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Study Resources (Accounting)

58) Parker Industrial Corp. uses a sales journal to record each sale transaction. On January 19, the sales journal was as you see below. Later in the month, two additional sales were made as follows: Inv# Amount Customer Cost of Goods 3079 $444 Lanier Service, Inc. $201 3080   709 June, Laura   366 Please enter the above two transactions into.
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Objective 7-1 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.
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  Table 7-7 Chaney Aircraft Service Chaney Aircraft Service Co. started business on April 1, 2013. They began business with $12,000 in cash and no other assets. During the first month of business, they used a purchase journal and a cash payment journal, and at the end of the month those journals.
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  Table 7-6 Provincewide Milling Company uses a sales journal. On June 2, the sales journal appears as you see below. Sales Journal Date Invoice # Customer Post Ref. Accts Rec DR/ Sales Rev CR COGS DR/ Inventory CR June 2 909 Richardson Products $ 4,200 $ 1,090      Total Other sales that took place in June are as follows: Inv # Sales Amount Customer Cost of Goods Sold 910 $ 880 Anton, Michael .
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62) 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 May.
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31) 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. 32) Internal and external auditors are part of which of the following components of internal control? A) monitoring controls B) information systems C) control procedures D) control environment 33) A.
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69) The following information is needed to reconcile the cash balance for Woods Paper Products. •A deposit of $5,794.62 is in transit. •Outstanding checks total $1,533.25. •The book balance is $5,695.62. •The bookkeeper recorded a $1,524.00 cheque as $15,240 in payment of the current month's rent. •The bank balance at February 28, 2008 was $16,500.25. •A.
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Objective 7-3 1) A special journal is an accounting journal designed to record one specific type of transaction. 2) The general journal is used to record all transactions that do not fit one of the special journals. 3) Cash in the chart of accounts is an example of a control account. 4) Special journals.
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Objective 7-6 1) Retail businesses usually pay, without reimbursement, sales tax on the goods they acquire for resale. 2) The cash receipts journal needs a column for GST receivable. 3) Which of the following is true concerning accounting for sales tax in the sales journal? A) Sales tax payable is credited each time a.
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Objective 8-1 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) The sole purpose of systems of internal control is to detect fraud. 4) Encouraging.
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22) 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.
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26) During October, Fitness Plans had the following transactions: Oct. 3              Purchased inventory from Laser Outfitters for cash, $1,050. 5Purchased inventory from Health Foods for $1,500 cash. 9Purchased $500 of supplies for cash. 10Purchased equipment for cash, $330. 17Made a $50 payment on a note payable. 25Received and paid utility bill, $275. 30Owner withdrew $1,000 for personal.
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11) Inputs would include: A) sales receipts. B) an income statement. C) a balance sheet. D) a statement of owner's equity. 12) Outputs would include: A) fax orders. B) sales receipts. C) bank deposit slips. D) an income statement. 13) Design of an accounting system begins with the: A) previous year's financial statements B) using a firewall C) chart of accounts D) opening trial.
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21) 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. 22) Persons who authorize transactions should not handle the.
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33) Indicate how the following columns are posted from the sales journal, cash payments journal, and the cash receipts journal. Use the following letters to indicate your answer: a) In total only b) Individually only c) In total and individually 1)Sales discounts debit column of the sales journal________ 2)Cost of goods sold debit and inventory.
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11) A good cost/benefit relationship: A) offers maximum benefits at a minimum cost. B) is impossible to achieve. C) exists in manual accounting systems only. D) would be ignored in a large organization. 12) Which of the following is not an element of internal control? A) assessing cost/benefit relationship. B) safeguarding assets and records. C) authorizing transactions. D).
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  Table 7-7 Chaney Aircraft Service Chaney Aircraft Service Co. started business on April 1, 2013. They began business with $12,000 in cash and no other assets. During the first month of business, they used a purchase journal and a cash payment journal, and at the end of the month those journals.
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59) 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 cheque #849 as $693.
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67) Burton 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)Purchased inventory for cash, $2,300__________ b)Received $3,000 from a customer on account__________ c)Purchased supplies on account,.
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11) Accounts receivable in the general ledger is known as a control account. 12) Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal. 13) In a manual accounting system the posting from a sales journal includes daily posting for cash transactions. 14) Both.
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31) Indicate the proper journal to use to record each of the following transactions. Use S for sales journal, P for purchases journal, CR for cash receipts journal, CP for cash payments journal, and G for general journal. a)Owner investment of cash________ b)Owner withdrawal of cash________ c)Payment of accrued salaries________ d)Sales of furniture in.
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Objective 8-2 1) It is necessary for  the owners and top managers to demonstrate the importance of internal controls in order to expect the employees to take the controls seriously. 2) It is poor planning to have employees rotate through jobs. 3) Separation of authorization of transactions from custody of related assets is.
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65) Prepare any necessary journal entries based on the following data regarding the bank reconciliation prepared by Ragoon Services on May 31, 2014. 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.
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28) List the four special journals. 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 29) Refer to Table 7-3. Objective:  7-2 Understand the elements of computerized and manual accounting systems Table 7-4   Accounts Payable Accounts Receivable Accumulated Amortization - Factory Amortization Expense Cash Cost of Goods.
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11) The purchase of equipment on account would be recorded in the: A) cash payments journal. B) general journal. C) purchases journal. D) sales journal. 12) 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.
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  Match the following. A) external auditors B) control environment C) internal auditors D) control procedures E) an audit 39) Employees of a business whose job it is to ensure that all employees are following company policies and that operations are running efficiently 40) Independent accounting professionals hired to determine that the organization's financial statements are prepared in.
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Objective 8-4 1) A lock-box system reduces theft and places the business's cash in circulation faster than if the cash is collected and deposited by company personnel. 2) The Cash Short and Over account is debited when sales revenue exceeds cash receipts. 3) To maintain effective internal control, all incoming mail should be.
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65) 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.
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53) Using the information in the following unidentified journals, state how the selected numbers would be posted using the selections below. 1) Posted to a general ledger account as a debit 2) Posted to a general ledger account as a credit 3) Posted to a subsidiary ledger account as a debit 4) Posted to.
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11) Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson returned because it was not what she had ordered. What entry does Richardson make assuming her company using a periodic inventory system? A) Accounts Payable-Perkins 500       Sales Returns and Allowances 500 B) Inventory 500       Accounts Payable-Perkins 500 C) Accounts Payable-Perkins 500       Purchase.
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  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 31) Refer to Table 7-5. 32) What are the benefits of studying a manual accounting system given that most companies have computerized accounting systems? 33) Describe the benefits of a computerized.
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Objective 7-4 1) If special journals are used, the purchase of merchandise for cash would be recorded in the cash payments journal. 2) The column total for other accounts in the cash payments journal is not posted to the general ledger. 3) The accounts payable subsidiary ledger controls the accounts payable account in.
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  Table 7-8 Nordin Avionics J. Nordin Avionics began business on January 1, 2013. The business was started with $10,000 in the cash account and $30,000 of inventory in stock. Nordin uses a sales journal to record credit sales and a cash receipts journal to record all cash receipts, including both cash.
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Objective 7-2 1) In a manual system, processing includes journalizing transactions, posting the accounts, and preparing the financial statements. 2) Data from source documents such as sales receipts and bank deposit slips are referred to as outputs of a data processing system. 3) The system of electronic linkages that allows different computers to.
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  Match the following. A) batch processing B) database C) menu D) on-line processing E) inputs 22) Computerized accounting for similar transactions in a group or batch 23) Computerized storehouse of information 24) The first stage of data processing 25) Computerized processing of related functions on a continuous basis 26) A list of options for choosing computer functions 27) Indicate using the.
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