A(n) ___________ system is the methods and procedures for collecting, classifying, summarizing and

reporting a business’s financial and operating information.

A. accounting
B. fiduciary
C. operations
D. auditing

The primary ledger containing all the balance sheet and income statement accounts is the
A. general ledger
B. creditors ledger
C. customers ledger
D. subsidiary ledger

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

The controlling account in the general ledger that summarizes the debits and credits to the individual
customers accounts in the subsidiary ledger is entitled
A. Purchases
B. Accounts Payable
C. Fees Earned
D. Accounts Receivable

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
A purchase of supplies for cash is recorded in the
A. Revenue journal
B. Purchases journal
C. Cash Receipts journal
D. Cash Payments journal

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

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

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

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
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

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

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

A cash purchase of supplies should be recorded in the

A. Cash Receipts journal
B. Purchase journal
C. General journal
D. Cash Payments journal

Subsidiary ledgers
A. are used only for Accounts Payable and Accounts Receivable
B. may be used for various ledger accounts
C. may be used for only for the Cash account
D. are never used for more than four accounts
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.

Which of the following is not considered a special journal?

A. purchases journal
B. cash receipts journal
C. general journal
D. cash payments journal

The cash receipts journal will be used for

A. only cash received from customers on account.
B. all cash received.
C. cash received from customers on account and cash sales.
D. only cash received from cash sales.

An “Accounts Receivable Subsidiary Ledger” report shows

A. revenues by customer for a specified date range.
B. cash receipts by customer for a specified date range.
C. cash payments to creditors for a specific date range.
D. sales by customer as of a specific date.

Which of the following accounts normally has a subsidiary ledger?

A. capital stock
B. retained earnings
C. supplies
D. accounts payable
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

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

Month-end posting to controlling accounts in a computerized accounting system is not required

because
A. controlling 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. computerized accounting posts entry at the end of the financial year.

Computerized accounting systems

A. is a tedious form of recordkeeping process.
B. improve the timeliness of reporting.
C. prevent all journalizing errors.
D. are only used in medium and large businesses.