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The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

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Segment re...

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An accounts receivable ledger is:


A) A subsidiary ledger that contains an account for each credit customer.
B) A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding.
C) A book of original entry that is designed and used for recording only a specified type of transaction.
D) The ledger that contains the financial statement accounts of a business.
E) A subsidiary ledger that contains a separate account for each creditor (supplier) to the company.

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_______________________________________ refers to the programs that help managers direct a company's vital operations.

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Enterprise...

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Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions: a. Foot and crossfoot the journal for accuracy. b. Identify the error and indicate how to correct the error. c. When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable. What is the most likely cause and how should it be corrected? Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions: a. Foot and crossfoot the journal for accuracy. b. Identify the error and indicate how to correct the error. c. When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable. What is the most likely cause and how should it be corrected?

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a.
b. The May 8 purchase from Steve Co. ...

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Subsidiary ledgers do all of the following except:


A) Remove excessive detail from the general ledger.
B) Provide up-to-date information on customer or other specific account balances.
C) Aid in error identification for individual accounts.
D) Help with division of labor (recordkeeping tasks) .
E) Eliminate the need for individual postings to the customer or supplier accounts.

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Describe the posting process for special journals.

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Posting to special journals is a three-s...

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The control principle for accounting information systems requires that the:


A) Benefits from an activity outweigh the costs of the activity.
B) System report useful, understandable, timely, and pertinent information for effective decision making.
C) System must have internal controls.
D) System adapts to changes in the company, business environment, and needs of decision makers.
E) System conforms to a company's activities, personnel, and structure.

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A __________________ journal is used to record and post transactions of similar type.

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A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded. A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

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All of the following statements regarding internal control procedures are except:


A) Internal control procedures are designed to ensure reliable financial reports.
B) Internal control procedures are designed to safeguards company assets.
C) Internal control procedures direct operations toward common goals.
D) Internal control procedures include methods to achieve compliance with laws and regulation.
E) Internal control procedures are bit affected by the cost-benefit principle.

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What are the five basic components of accounting information systems

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The five basic components of a...

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An accounts payable ledger is:


A) A subsidiary ledger that contains an account for each supplier (creditor) .
B) A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding.
C) A book of original entry that is designed and used for recording only a specific type of transaction.
D) The ledger that contains the financial statement accounts of a business.
E) A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

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A company issued a check for $7,900 in payment of the salaries expense for the last half of the month. Identify the journal the transaction would be recorded in.


A) Cash disbursements journal.
B) Sales journal.
C) Cash receipts journal.
D) Purchases journal.
E) General journal.

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A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n) :


A) Schedule of accounts.
B) Controlling account.
C) Schedule of accounts receivable.
D) Subsidiary ledger.
E) Special journal.

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The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

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Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:


A) Sales journal.
B) General journal.
C) Cash receipts journal.
D) Accounts receivable ledger.
E) Cash disbursements journal.

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When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

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A procedure called direct posting of sales invoices can substitute for the sales journal.

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The Accounts Payable account in the general ledger is:


A) A controlling account for the subsidiary accounts payable ledger.
B) The account that controls the purchases journal.
C) The subsidiary account to the purchases journal.
D) Part of a special journal.
E) Part of a subsidiary ledger.

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The __________________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

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