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ch07
Student: ______
1. Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers. True False
2. Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work. True False
3. The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit. True False
4. Internal controls include policies to direct operations toward common goals, procedures to ensure reliable financial reports, safeguards to protect company assets and methods to achieve compliance with laws and regulations. True False
5. The flexibility principle prescribes that an accounting information system conform with a company's activities, personnel, and structure and adapt to a company's unique characteristics. True False
6. The compatibility principle requires that an accounting system report useful, understandable, timely, and pertinent information for effective decision making. True False
7. The cost-benefit principle prescribes that the benefits from an activity in an accounting information system outweigh the costs of that activity. True False
8. Accounting information systems are designed to capture information about a company's transactions and events and to provide output including financial, managerial, and tax reports. True False
9. Due to electronic files and Web communications, source documents are no longer required. True False
10. Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system. True False
11. With advanced technology there is no need to trace information that has been entered into an accounting information system to its source. True False
12. With on-line systems, all information storage should be off-line to protect the data. True False
13. Accounting information processes are structured to eliminate the need for professional judgment. True False
14. Auditors rely on accounting system databases when they audit financial statements and a company's controls. True False
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 15. Input devices are the means to make accounting information available to users. True False
16. Input devices include journal entries, keyboards, scanners, and modems. True False
17. A special journal is used to record and post transactions of a similar type. True False
18. A sales journal is used to record cash sales. True False
19. The purchases journal is used to record cash purchases of merchandise. True False
20. The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries. True False
21. Special journals allow an efficient division of labor, which is also an effective control procedure. True False
22. When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger. True False
23. Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements. True False
24. Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal. True False
25. A subsidiary ledger is a listing of individual accounts with a common characteristic. True False
26. Two common subsidiary ledgers are cash receipts and cash disbursements. True False
27. The accounts payable ledger is used for storing transactions data regarding individual customers. True False
28. The accounts payable ledger has a controlling account in the general ledger and a separate subsidiary account for each creditor in the accounts payable ledger. True False
29. Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger. True False
30. Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need. True False
31. An advantage of online processing is up-to-date databases. True False
32. Off-the-shelf accounting software is not adequate to meet the needs of small businesses. True False
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 33. Enterprise resource planning software packages include the programs that manage a company's vital operations. True False
34. Computer networks are links among computers giving different users and different computers access to common databases and programs. True False
35. Enterprise resource planning software is primarily used for recording journal entries. True False
36. Most companies use batch processing instead of online processing because batch processing immediately updates databases. True False
37. The SAP enterprise-resource planning software is already being used to help direct the operations of many of the world's largest companies. True False
38. A business segment is a part of a company that is separately identified by its products or services, or by the geographic market it serves. True False
39. Segment return on assets is segment operating income divided by segment average assets. True False
40. External users of financial statements are generally uninterested in segment information to understand a company's business activities. True False
41. Segment information is often useful to investors for evaluating a company's profitability, risk, and growth. True False
42. A columnar journal is any journal with only one column. True False
43. Individual transactions in the sales journal are regularly posted to customer accounts in the accounts payable ledger. True False
44. Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts. True False
45. Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales. True False
46. 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. True False
47. A procedure called direct posting of sales invoices can substitute for the sales journal. True False
48. Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete. True False
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 49. A schedule of accounts receivable is a listing of all creditor accounts and account balances. True False
50. If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account, then the accounts are presumed to be correct. True False
51. 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. True False
52. A company using the periodic inventory system does not record the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal. True False
53. The purchases journal is identical under both the periodic and the perpetual inventory systems. True False
54. The difference in the sales journal between the perpetual and periodic inventory systems is that a column is used to record cost of goods sold and inventory amounts for each sale under the perpetual system but not the periodic system. True False
55. All of the following statements regarding accounting information systems are true except: A. Accounting information systems collect and process data from transactions and events. B. Accounting information systems organize data in useful forms. C. Accounting information systems do not establish internal control procedures. D. Accounting information systems are crucial to effective decision making. E. Accounting information systems communicate information to business decision makers.
56. All of the following statements regarding internal control procedures are true 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.
57. 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.
58. The flexibility principle of accounting information systems prescribes 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 aid managers in controlling and monitoring business activities. D. System be able to adapt to changes in the company, business environment, and needs of decision makers. E. System conforms to a company's activities, personnel, and structure.
59. The accounting principle that prescribes an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the: A. Control principle. B. Compatibility principle. C. Relevance principle. D. Flexibility principle. E. Cost-Benefit principle.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 60. The five fundamental principles of accounting information systems are: A. Control, accountability, relevance, compatibility, and flexibility. B. Historical cost, relevance, compatibility, flexibility, and cost-benefit. C. Control, relevance, compatibility, flexibility, and safety. D. Control, relevance, compatibility, timeliness, and cost-benefit. E. Control, relevance, compatibility, flexibility, and cost-benefit.
61. All of the following statements regarding accounting information systems are true except: A. Accounting information systems consist of people, records, methods, and equipment. B. Accounting information systems have the same goals and share basic components. C. Accounting information systems are less important than ever to decision makers. D. Accounting information systems are designed to provide output including financial, managerial, and tax reports. E. Accounting information systems are designed to capture information about a company's transactions.
62. The basic components of an accounting information system include all of the following except: A. Source documents. B. Warehouses. C. Information processors. D. Information storage. E. Input devices.
63. Source documents: A. Are input devices. B. Provide the basic information processed by an accounting system. C. Cannot be electronic files. D. Store processed information for future use. E. Cannot be paper documents.
64. Input devices include: A. Bar-code readers. B. Printers. C. Software. D. Ledgers. E. Information processors.
65. Information storage: A. Eliminates the need for professional judgment. B. Keeps data in a form accessible to information processors. C. Provides the basic information processed by an accounting system. D. Captures information from source documents. E. Cannot be online.
66. Output devices include all of the following except: A. Printers. B. Monitors. C. LCD projectors. D. Web communications. E. Bar code readers.
67. Information processors: A. Include information storage. B. Interpret, transform, and summarize information for use in analysis and reporting. C. Are components of an accounting system that keep data in accessible form. D. Are the means to take information out of an accounting system and make it available to users. E. Include scanners.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 68. The special journals of many accounting systems include the: A. Sales journal. B. Purchases journal. C. Cash receipts journal. D. Cash disbursements journal. E. General Ledger.
69. The sales journal is used for recording: A. Credit purchases. B. Credit sales. C. Cash sales. D. Cash purchases. E. Cash receipts.
70. The purchases journal is used for recording: A. Credit purchases. B. Credit sales. C. Cash sales. D. Cash purchases. E. Cash disbursements.
71. A log that is used to record and post transactions of a similar type is a: A. Schedule. B. Columnar ledger. C. Special journal. D. General journal. E. Subsidiary ledger.
72. When a company uses special journals, the general journal is used for selected transactions and events including: A. Recording adjusting transactions. B. Posting transactions to special journals. C. Accumulating debits and credits. D. Collecting detailed listings of amounts. E. Recording cash receipts.
73. A record that contains all accounts (with amounts) of a company is the: A. General ledger. B. General journal. C. Special ledger. D. Special journal. E. Column balance ledger.
74. A subsidiary ledger: A. Includes transactions not covered by special journals. B. Is a listing of all of the accounts of a business. C. Is a listing of individual accounts and amounts with a common characteristic. D. Is also called a general ledger. E. Is also called a special journal.
75. A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n): A. Controlling account. B. Accounts receivable ledger. C. Accounts payable ledger. D. General ledger. E. Special journal.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 76. 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.
77. 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.
78. An accounts receivable ledger is: A. A subsidiary ledger that contains an account for each credit customer. BA 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.
79. The use of an Accounts Payable controlling account: A. Reduces the number of accounts in the subsidiary ledger. B. Reduces the total number of accounts maintained. C. Reduces the number of entries in the general journals. D. Reduces the number of accounts in the general ledger. E. Increases the number of columns in the journals.
80. 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.
81. The accounts receivable ledger: A. Is for storing transaction data for customers. B. Is for storing transaction data for individual customers. C. Is for storing transaction data for individual creditors. D. Is for storing transaction date for creditors. E. Is also the controlling account.
82. Enterprise-resource planning software: A. Refers to programs that help manage a company's vital operations. B. Is another name for spreadsheet programs. C. Uses batch processing of business information. D. Is substantially declining in use. E. Is another name for database programs.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 83. An approach that enters and processes data as soon as source documents are available is called: A. Date storage. B. Batch processing. C. Online processing. D. Computer programming E. Web communications.
84. Which of the following does not apply to enterprise resource planning (ERP) software: A. ERP refers to programs that help manage a company's vital operations. B. ERP can include programs that extend from order taking to manufacturing to accounting. C. ERP can speed up business decision making and help reduce costs. D. ERP can not be used to share data with customers and suppliers. E. ERP can be designed to link every part of a company's operations.
85. A business segment: A. Requires only internal reporting. B. Is a part of a company that is separately identified by its products, services, or geographic market. C. Requires special journals. D. Requires subsidiary ledgers. E. Cannot report its results separately.
86. Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is: A. 49.4% B. 69.0% C. 71.6% D. 139.7% E. 144.8%
87. The segment return on assets: A. Can only be determined for international companies. B. Reflects the profitability of a segment. C. Is difficult to calculate because companies with traded stock are not required to report segment information. D. Is calculated as segment average assets divided by segment operating income. E. Is calculated as segment sales divided by segment average assets.
88. When the sales journal's column for accounts receivable and sales is totaled at the end of the month, its total is: A. Debited to Sales and credited to Accounts Receivable. B. Debited to Accounts Receivable and credited to Cash. C. Debited to Cash and credited to Accounts Receivable. D. Debited to Accounts Receivable and credited to Sales. E. Debited to Cash and credited to Sales.
89. 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.
90. 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.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 91. After posting is completed, there may be an error if: A. The sum of the customer account balances does not equal the total in the sales journal. B. The sum of the accounts receivable ledger does not equal the balance in the Sales account. C.The sum of the customer account balances does not equal the general ledger Accounts Receivable controlling account balance. D. The balance in the sales journal does not equal the Accounts Receivable account balance. E. The sum of the accounts receivable ledger does not equal the balance in the sales journal.
92. Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered: A. When the purchases journal is posted to the general ledger. B. When the sum of the vendor accounts does not equal the balance in the Purchases journal. C. When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account. D. When the creditors receive their payments. E. When the financial statements are prepared.
93. The main difference in the sales journal under the perpetual and periodic inventory system is: A.The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic. B. The sales tax receivable column that is used under the perpetual system but not the periodic. C. The sales tax payable column that is used under the perpetual system but not the periodic. D. The accounts receivable column that is used under the perpetual system but not the periodic. E. The column for recording cash that is used under the perpetual system but not the periodic.
94. The accounting principle that prescribes an accounting information system conform with a company's activities, personnel, and structure is the: A. Control principle. B. Compatibility principle. C. Relevance principle. D. Flexibility principle. E. Cost-Benefit principle.
95. All of the following statements regarding source documents are true except: A. Source documents provide the basic information processed by an accounting system. B. Source documents include bank statements, cash register files, and employee earnings records. C. Source documents are insignificant and play a minor role in the reliability of the information system. D. Source documents can be paper or electronic files. E. Source documents can include Web communications.
96. All of the following statements regarding input devices are true except: A Input devices capture information from source documents and enable its transfer to the system's . information processing component. B. Input devices convert data on source documents from written form to a form usable for the system. C. Input devices include keyboards, scanners, and modems. D. Input devices include journal entries. E. Input devices are always reliable and no controls are needed to verify accuracy of input.
97. For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except: A. Column totals would continue to be posted as usual. B. A Sales Taxes Payable credit column would be added. C. There would be a separate Accounts Receivable debit column. D. A Sales Taxes Payable debit column would be added. E. There would be a separate Sales credit column.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 98. To be sure that total debits and credits in a columnar journal are equal, before posting we should: A. Crossfoot. B. Foot. C. Journalize. D. Post. E. Reconcile.
99. A company borrowed $50,000 from a bank by signing a long-term note payable. 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.
100.A company had cash sales of $24,000 (cost is $13,000). Identify the journal the transaction would be recorded in. A. Cash disbursements journal. B. Sales journal. C. Cash receipts journal. D. Purchase journal. E. General journal.
101.A company sold merchandise on credit for $5,000 (cost is $2,400). 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.
102.A company purchased $11,200 of merchandise on credit. 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.
103.A company received payment of $9,800 from a customer within the discount period. 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.
104.A company issued a check for $7,900 in payment of merchandise. 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.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 105.A company purchased equipment costing $32,000 on credit. 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.
106.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.
107.A company had average total assets of $982,450 and net income of $190,700, and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment A. A. 19.4%. B. 22.4%. C. 26.1%. D. 10.7%. E. 20.2%.
108.A company had average total assets of $982,450 and net income of $190,700, and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment B. A. 19.4%. B. 22.4%. C. 26.1%. D. 10.7%. E. 20.2%.
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 109.Identify the accounting information system principle below that applies to each of these situations. 1. C Global Company has designed their accounting information system ost- to be adaptable to changes in technology, the business environment, _ benef and the needs of decision makers. _ it _ _ 2. Re Global Company has world-wide operations that must handle levan several thousand different products, so the accounting information _ ce system is fairly complex, encompassing marketing and manufacturing. _ _ _ 3. Co Global Company's accounting information system has policies to mpati ensure that financial statements will be reliable, assets are protected, _ bility and relevant laws and regulations are complied with. _ _ _ 4. Co Global Company's accounting information system can be improved ntrol markedly for a cost of about $30,000,000. However, the incremental _ benefits from such improvements are not expected to outweigh this _ cost. _ _ 5. Fle Global Company has designed their accounting information system xibili so that key managers can obtain the information they need to make _ ty decisions relating to new products, sales, and controlling costs. _ _ _
110.Match the following accounting system components a through e with the appropriate application(s) 1 through 10: 1. Source documents Computer keyboard ____ 2. Information storage Computer hard drive ____ 3. Output devices Journal entries ____ 4. Information processor Journals ____ 5. Information processor Financial statements ____ 6. Output devices Invoice from suppliers ____ 7. Input devices Employee paychecks ____ 8. Source documents Computer monitor ____ 9. Output devices Software ____ 10. Input devices Electronic files ____
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 111.Match the following terms with the appropriate definition(s). 1. Schedule The people, records, methods, and equipment that collect of accounts and process data from transactions and events, organize them in _ receivable useful forms, and communicate results to decision makers. _ _ _ 2. Control A part of a company that can be separately identified by principle the products or services that it provides, or by the geographic _ market that it serves. _ _ _ 3. Infor The special journal used to record all receipts of cash. mation _ processor _ _ _ 4. Cash An information system principle requiring that an accounting disburseme information system aid managers in controlling and monitoring _ nts journal business activities. _ _ _ 5. Relevanc An information system principle requiring that an accounting e principle system report useful, understandable, timely, and pertinent _ information for decision making. _ _ _ 6. Compute Programs that manage a company's vital operations which r network range from order-taking to manufacturing to accounting. _ _ _ _ 7. Cash The special journal that is used to record all payments of receipts cash. _ journal _ _ _ 8. Business Links among computers giving different users and different segment computers access to common databases and programs. _ _ _ _ 9. Acc The component of an accounting system that interprets, ounting transforms, and summarizes information for use in analysis and _ information reporting. _ system _ _ 10. Enterpr A list of each customer from the accounts receivable ledger ise resource with their balances and the total. _ planning _ _ _
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 112.Match the following terms with the appropriate definitions. Cash receipts journal:;The special journal that is used to record all receipts of cash. Segment return on assets:A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets. 1. Special An information system principle requiring that an _ journal accounting information system conform with a company's __ activities, personnel, and structure. _ 2. Information An information system principle requiring that the _ storage benefits from an activity in an accounting information system __ outweigh the costs of that activity. _ 3. Cost- A journal used to record all purchases on credit. _ benefit __ principle _ 4. Purchases A journal used to record sales of merchandise on credit. _ journal __ _ 5. Sales The component of an accounting system that keeps data in _ journal a form accessible to information processors. __ _ 6. Schedule Any journal used for recording and posting transactions of _ of accounts a similar type. __ receivable _ 7. Controlling A general ledger account, the balance of which (after _ account posting) equals the sum of the balances of the accounts in a __ related subsidiary ledger. _ 8. Compatibili A list of each customer from the accounts receivable _ ty principle ledger with their balances and the total. __ _
113.A company entered into the following transactions. Match each transaction with the appropriate journal. 1. General journal Borrowed $5,000 cash from the bank. ___ _ 2. Cash receipts journal A customer returned a $250 item purchased ___ on account. _ 3. Cash receipts journal Purchased merchandise on account, $2,700. ___ _ 4. Purchases journal Purchased a display rack on account for ___ $4,700. _ 5. Purchases journal Paid $65,000 cash in wages and salaries. ___ _ 6. General journal Paid a utility bill for $3,400 cash. ___ _ 7. Cash disbursements Purchased $1,590 of store supplies on ___ journal account. _ 8. Cash disbursements Recorded depreciation on store equipment of ___ journal $4,000. _ 9. General journal Returned defective inventory purchased on ___ account, $2,900. _ 10. Purchases journal Recorded cash sales of $14,700. ___ _
ToTo downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://downloadslide.blogspot.comhttp://downloadslide.blogspot.com 114.A company entered into the following transactions. For each transaction, indicate the appropriate journal. 1. General Journal Purchased merchandise for cash. ___ _ 2. Cash Receipts Journal Sold merchandise for cash. ___ _ 3. Cash Receipts Journal Purchased merchandise on credit. ___ _ 4. Sales Journal Sold merchandise on credit ___ _ 5. Cash Receipts Journal Paid cash to settle the utility bill. ___ _ 6. Purchases Journal Owner invested more cash in the business. ___ _ 7. Cash Disbursements Recorded depreciation for the period. ___ Journal _ 8. Cash Receipts Journal Borrowed cash from the bank. ___ _ 9. Cash Disbursements Bought store supplies for cash. ___ Journal _ 10. Cash Disbursements Customer sent in cash to settle an account ___ Journal receivable. _
115.List the five basic principles of accounting information systems.