Book Title; Author

Chapter 06 - Multiple choice quiz


1.
An awareness of cost in developing an accounting system does not imply that
A.
the benefits obtained from the system outweigh the costs.
B.
an electronic system must be cheaper than the system it is replacing.
C.
the system should be cost effective.
D.
the value of an accounting report should be at least equal to the cost of producing it.


2.
The accounting environment does not change as a result of
A.
technological advances.
B.
government regulation.
C.
the double entry system.
D.
organisational growth.


3.
The design phase of developing an accounting system includes
A.
training personnel.
B.
the evaluation of weaknesses and breakdowns.
C.
the integration of controls.
D.
the identification of strengths.


4.
Which of the following is a true statement about manual and electronic accounting systems?
A.
Few small companies begin with manual systems.
B.
The design and structure of manual and electronic systems are essentially the same.
C.
Many companies convert from electronic to manual systems.
D.
The design and structure of manual and electronic systems are fundamentally different.


5.
Postings are made daily to subsidiary ledgers so that
A.
employees are kept busy.
B.
debits equal credits.
C.
individual account information is kept current.
D.
the control account will balance to the subsidiary ledger.


6.
The one characteristic that all entries recorded in a cash receipts journal have in common is
A.
a credit to the Cash account.
B.
that they all represent collections from customers.
C.
that they originate from the sales of merchandise.
D.
a debit to the Cash account.


7.
A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a
A.
one column purchases journal.
B.
multi-column purchases journal.
C.
cash payments journal.
D.
general journal.


8.
If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded in the
A.
general journal.
B.
cash receipts journal.
C.
cash payments journal.
D.
sales journal


9.
Correcting entries are journalised in
A.
a special journal.
B.
the general journal.
C.
the general ledger.
D.
a correcting journal.


10.
Adjusting entries are recorded
A.
only on the work sheet.
B.
only in the general ledger.
C.
in the general journal.
D.
in the special journals.


11.
The entries in a sales journal will show
A.
all sales of merchandise.
B.
the cash sales of the company.
C.
the credit sales of merchandise.
D.
all sales of the company.


12.
Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the
A.
sales journal.
B.
cash receipts journal.
C.
purchases journal.
D.
cash payments journal.


13.
Entries in a sales journal are
A.
posted only to accounts in an accounts receivable subsidiary ledger.
B.
posted only to accounts in the general ledger.
C.
posted to accounts in an accounts receivable subsidiary ledger and to accounts in the general ledger.
D.
never posted.


14.
Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?
A.
Accounts Receivable; accounts receivable subsidiary accounts
B.
Accounts receivable subsidiary accounts; Sales
C.
Accounts Receivable; Sales
D.
Accounts Receivable; Purchases


15.
Which of the following is not a true statement about the daily posting of the sales journal?
A.
There is a debit posting to accounts in the accounts receivable subsidiary ledger.
B.
There is no credit posting.
C.
The reference column in the sales journal is checked when the posting is complete for each entry in the journal.
D.
The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.


16.
Evidence that the monthly posting of the sales journal total has been accomplished is indicated by
A.
a signature of the accountant doing the posting.
B.
a date under the double-line total.
C.
the general ledger account numbers under the double-lined total.
D.
inspecting the postings in the accounts payable subsidiary ledger.


17.
An (x) below the "Other Accounts" column in a cash receipts journal indicates the
A.
total has been posted to the general ledger.
B.
total is not posted to the general ledger.
C.
column has been totaled
D.
column has been cross-totaled.


18.
Which of the following would not be an appropriate heading for a column in the cash receipts journal?
A.
Cash
B.
Accounts Payable
C.
Sales Discounts
D.
Sales


19.
If a customer takes a cash discount, an entry is made in the
A.
cash receipts journal.
B.
sales journal.
C.
cash payments journal.
D.
general journal.


20.
When the totals of the sales journal are posted at the end of the month, there will be credits to
A.
Sales and Merchandise Inventory and debits to Accounts Receivable and Cost of Goods Sold.
B.
Accounts Receivable and Cost of Goods Sold and debits to Sales and Merchandise Inventory.
C.
Sales and debits to each individual customer account.
D.
the Sales account only, and no debits.



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