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CHAP 7 MC

Total questions: 57

Worksheet time: 29mins

Name
Class
Date
1.

1. The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is

a)

cost effectiveness

b)

flexibility

c)

useful output

d)

implementation

2.

33. Which of the following is not a basic principle of designing and developing an effective accounting information system

a)

Approval by the SEC

b)

Usefulness

c)

Flexibility

d)

Cost effectiveness

3.

34. In developing an accounting system, cost-effectiveness does not imply that

a)

the benefits obtained from the system outweigh the cost

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

4.

36. To be useful, the information outputs of a system should be

a)

relevant, reliable, timely and accurate

b)

reliable, flexible, understandable and timeless

c)

such that one report meets all different users needs

d)

distributed only to management personnel

5.

37. The accounting environment does not change as a result of

a)

technological advances

b)

government regulation

c)

the double entry systems

d)

organizational growth

6.

38. The principle of developing an accounting information system do not include

a)

usefulness

b)

flexibility

c)

cost effectiveness

d)

elimination of human involvement

7.

39. A student should organize a need to manual accounting systems because

a)

the structure of electronic systems differs greatly from manual systems

b)

all small companies only use manual accounting systems

c)

the software and hardware of electronic systems vary greatly, which makes manual procedures more practical to study

d)

company that use manual systems hire more accountants

8.

40. 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

9.

41. Posting to the control accounts in the general ledger are made

a)

annually

b)

daily

c)

monthly

d)

weekly

10.

42. The balance of a control account in the general ledger

a)

must always be zero

b)

must equal the amount of total assets

c)

is always greater than the composite balance of individual accounts in a related subsidiary ledger

d)

must equal the composite balance of individual accounts in a related subsidiary ledger

11.

43. A subsidiary ledger is

a)

used in place of the general ledger if the general ledger is destroyed or stolen

b)

a group of accounts used by branches and subsidiaries of a corporate business

c)

a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger

d)

used to post excess transactions if a general ledger account becomes full during an accounting periood

12.

44. Postings are made daily to the

a)

accounts receivable control account

b)

accounts payable control account

c)

accounts receivable subsidiary ledger

d)

control accounts in the general ledger

13.

45. A company would not likely use subsidiary ledgers for

a)

inventory

b)

OC

c)

equipment

d)

accounts receivable

14.

47. 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

15.

48. Accounts receivable and account payable are examples of

a)

normal accounts

b)

controlling

c)

subsidiary ledger accounts

d)

both nominal accounts and controlling account

16.

49. The composite balance of individual accounts in the accounts payable subsidiary ledger must

a)

equal the composite balance of the individual accounts receivable subsidiary ledger

b)

always be zero

c)

equal the balance of the accounts payable account in the general ledger

d)

agree with the total of the accounts payable column in the cash receipt journal

17.

50. The one characteristic that all entries in a cash payments journal have in common is

a)

that they all represent purchases or merchandise

b)

a credit to the cash account

c)

that they are all posted to the account payable subsidiary ledger

d)

a debit to the accounts payable or purchases accounts

18.

51. In which journal would a customer's partial payment on account be recorded

a)

sales journal

b)

cash receipts journal

c)

general journal

d)

cash payments journal

19.

52. In which journal would a cash purchase of inventory be recorded

a)

purchases journal

b)

general journal

c)

cash payments journal

d)

none of these answer choices are correct

20.

53. The individual amounts in the sales journal are posted to the accounts receivable subsidiary ledger

a)

daily

b)

weekly

c)

monthly

d)

yearly

21.

54. A sales journal is used to record

a)

only cash sales of merchandise

b)

sales of all assets on credit an for cash

c)

only credit sales of merchandise

d)

credit sales of merchandise, sales returns and allowances and sales discounts

22.

55. If a transaction cannot be recorded in a special journal

a)

the company must refuse to enter into the transaction

b)

it is recorded in the general journal

c)

it is recorded directly in the accounts in the general ledger

d)

it is recorded as an adjustments on the work sheet

23.

56. 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

24.

57. A one-column purchases journal indicates that

a)

only purchases of merchandise on account can be recorded

b)

all purchases of merchandise can be recorded

c)

all acquisitions on account can be recorded

d)

another column must be added so that debits and credits can be recorded

25.

58. The one characteristic that all entries recorded in a multi-column purchases journal have in common is a

a)

credit to the cash account

b)

debit to the cash account

c)

debit to the account payable account

d)

credit to the accounts payable account

26.

59. A company that uses special journals should record a transaction involving the purchase of merchandise for cash in a

a)

one column purchase journal

b)

multi-column purchase journal

c)

cash payments journal

d)

general journal

27.

60. If a customer returns merchandise from a cash sale for a refund, the sales return is recorded in the

a)

general journal

b)

cash receipts journal

c)

cash payments journal

d)

sales journal

28.

61. Which of the following is not a special journal

a)

sales journal

b)

purchases journal

c)

general journal

d)

cash receipts journal

29.

63. Adjusting entries are recorded

a)

only on the worksheet

b)

only in the general ledger

c)

in the general journal

d)

in the special journal

30.

64. All of the column totals in the cash receipts journal posted general ledger accounts except the

a)

accounts receivable column total

b)

cash column total

c)

sales column total

d)

other accounts column total

31.

65. If a transaction cannot be recorded in a special journal, it is

a)

not recorded

b)

a correcting entry

c)

recorded in the general journal

d)

an error

32.

66. A company uses a sales journal, cash receipts journal, purchases journal, cash payments journal, and general journal. A cash sales return would be recorded in the

a)

sales journal

b)

cash receipts journal

c)

cash payments journal

d)

general journal

33.

67. 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

34.

68. Entries in a sales journal

a)

are made from sales invoices

b)

will indicate the invoice number in the reference column of the sales journal

c)

in occupy two liners of the sales journal

d)

indicate either a cash debit of accounts receivable debit

35.

69. Journalizing in a sales journal will not

a)

require a debit to accounts receivable

b)

show a sales invoice number

c)

affect the reference column of the journal

d)

include a credit to the sales revenues account

36.

70. If an owner withdraws cash for personal use, the transaction should be recorded in the

a)

sale journal

b)

cash receipts journal

c)

general journal

d)

cash payments journal

37.

71. If a company purchases merchandise for cash, the transaction should be recorded in the

a)

purchases journal

b)

sale journal

c)

cash receipts journal

d)

general journal

38.

73. Posting from the purchases journal to the general ledger are made

a)

daily

b)

monthly

c)

weekly

d)

yearly

39.

74. The individual amounts in the Accounts Payable column in the cash payments journal are posted to the subsidiary ledger

a)

daily

b)

monthly

c)

weekly

d)

yearly

40.

75. Debit postings to the individual accounts in a accounts receivable subsidiary ledger generally come from the

a)

sales journal

b)

cash receipts journal

c)

purchases journal

d)

cash payments journal

41.

76. 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

42.

77. Which one of the following columns in a cash receipts journal is not posted in journal to an account in the general ledger

a)

Cash column

b)

Sales Discounts column

c)

Accounts Receivable column

d)

Other Accounts column

43.

78. The use of special journals to record transactions

a)

eliminates the need for a general ledger

b)

can save time in the posting process

c)

eliminates the need for a general journal

d)

should only be used if the volume of transactions is small

44.

79. Posting a sales journal to the accounts in the general ledger requires a

a)

debit to Cash and a credit to Sales Revenue

b)

debit to Sales Revenue and a credit to Inventory

c)

debit to Accounts Receivable and a credit to Inventory

d)

debit to Accounts Receivable and a credit to Sales Revenue

45.

80. The entries recorded in the Other Accounts column of a cash payments journal

Các mục được ghi trong cột Tài khoản khác của nhật ký thanh toán bằng tiền mặt

a)

are posted to the accounts payable subsidiary ledger daily

b)

are posted individually to accounts in the general ledger

c)

are not posted individually but are posted as a column total to the general ledger

d)

do not require posting

46.

81. The entry to record the granting of credit to a customer for a sales return is posted to

a)

the account receivable subsidiary ledger only

b)

the general ledger only

c)

both the accounts receivable subsidiary ledger and the general ledger

d)

both the accounts payable subsidiary and the general ledger

47.

82. Proving the equality of the totals in the columns of multiple-column special journals is called

Chứng minh sự bằng nhau của tổng số trong các cột của tạp chí đặc biệt nhiều cột được gọi là

a)

posting to the subsidiary

b)

debiting and crediting

c)

footing and crossfooting

d)

updating the master file

48.

83. If a company records merchandise it returns to suppliers in the general journal, then

a)

a posting must be made only to the accounts payable control account

b)

a posting must be made only to the accounts payable subsidiary ledger account

c)

a dual posting posting must be made

d)

there will be a debit to inventory

49.

84. Reno's Whole sale uses a sales journal. An entry in this journal represents a

a)

debit to cash, credit to sales revenue

b)

debit to accounts receivable, credit to sales revenue

c)

debit to sale discounts, credit to cash

d)

debit to accounts payable, credit to sales returns and allowance

50.

85. Which accounts in the general ledger are affected when the monthly posting is made from the sales journal

a)

AR,AR subsidiary accounts

b)

AR subsidiary accounts, Sales Revenue

c)

Accounts Receivable, Purchases

d)

AR, Sale Revenue

51.

86. 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

52.

87. Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

a)

a signature of the accountant doing the closing

b)

a date under the double-line total

c)

the general ledger account numbers under the double-line total

d)

inspecting the posting in the accounts payable subsidiary ledger

53.

88. Which of the following economic events would not be recorded in the cash receipts journal

a)

cash sales of merchandise

b)

collections of accounts receivable

c)

cash from sale of land

d)

cash purchases of merchandise

54.

89. The 'Other Accounts" columns in cash receipts journal is also referred to as the

a)

miscellaneous column

b)

excess column

c)

sundry accounts column

d)

compound-entry column

55.

90. An entry in the 'Other Accounts' column in a cash receipts journal could occur when the credit is to

a)

Owner's Drawing

b)

Account Payable

c)

Owner's Capital

d)

Inventory

56.

91. The process of totaling the columns of a journal is termed

a)

ruling

b)

columnizing

c)

sizing

d)

footing

57.

92. 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 footed

d)

column has been cross-footed