ACCOUNTING 26TH EDITION BY WARREN -TEST BANK

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ACCOUNTING 26TH EDITION BY WARREN -TEST BANK

Description

WITH ANSWERS
ACCOUNTING 26TH EDITION BY WARREN -TEST BANK

Chapter_05_Accounting_Systems

  1. The methods and procedures for collecting, classifying, summarizing, and reporting a businesss financial and operating information are called the accounting system.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Systems analysis is the final phase in the creation or revision of an accounting system.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Processing methods are the means by which the system collects, summarizes, and reports accounting information.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.06 Recording Transactions ACCT.AICPA.FN.03 Measurement

BUSPROG: Analytic

 

 

 

  1. Accounting systems evolve through a three-step process: analysis, design, and feedback.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. An accounting system design consists of internal controls and information processing methods.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Most accounting systems evolve as the business grows and requires changes in its methods for collecting, accumulating, and reporting information.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Once an accounting system has been implemented, feedback will be used to continuously analyze and improve the
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Designing a system to meet user needs is the final phase in the creation or revision of an accounting system.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

  1. When specialized journals are used, the general journal is not
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Specialized journals are books of original entry.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Transactions must first be recorded into the general journal before they can be entered into specialized journals.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The format and number of specialized journals that a business uses depends upon the legal organization of the
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.03 Business Forms

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. The basic procedure of posting from a revenue journal is to make all postings at the end of the month.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The principal ledger that contains all the balance sheet and income statement accounts is the general ledger.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The presence of a subsidiary ledger requires the presence of a summarizing control account in the general ledger.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. An account for each supplier of merchandise will appear in the accounts payable subsidiary ledger.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The customers subsidiary ledger is controlled by the general ledger account entitled Accounts Payable.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. When a sale for $1,350 takes place with a $250 deposit having been received in advance, only the $1,100 on account is recorded in the revenue journal.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Challenging

Blooms: Applying

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Even when special journals are used, purchases of store equipment on account are recorded in the general journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. A control account is used to record the details of the individual subsidiary accounts.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. A cash refund paid to a customer who overpaid an account receivable is recorded in the cash payments journal.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Even when special journals are used, a personal withdrawal of cash is recorded in the general journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Services provided for cash are recorded in the revenue journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Services provided on account are recorded in the revenue journal.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Sales of office supplies for cash, at cost, to a neighboring business as an accommodation are recorded in the revenue journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Challenging

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The Other Accounts column in the cash receipts journal is used for recording debits to any account for which there is no special debit column.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Challenging

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The Other Accounts column in the cash payments journal is used for recording debits to any account for which there is no specialized debit column.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Purchases journals will have an Other Accounts Cr. column.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Challenging

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The use of subsidiary ledgers is limited to Accounts Payable and Accounts Receivable.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The revenue journal is designed for the efficient recording of cash sales transactions.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Challenging

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. The Post. Ref. column of the revenue journal will reference the account number of the customer.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Challenging

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The total of the accounts receivable subsidiary accounts and the balance of the accounts receivable control account should equal each other at the end of the period.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Adjusting journal entries are recorded in a special journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Even when special journals are used, closing journal entries are recorded in the general journal.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.08 Closing Entries

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The accounts receivable subsidiary ledger is an example of a special journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Posting from a revenue journal to the customer account is normally done only at the end of the month.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. The purchase of supplies for cash would be recorded in the purchases journal.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. When a large number of individual accounts with a common characteristic are grouped together in a separate ledger, the summarizing account in the general ledger is called a control account.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The customers ledger and the creditors ledger refer to subsidiary ledgers.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. The total on the Accounts Payable Creditor Balances report at January 31, the end of the first month of operations, agrees with the total of the Accounts Payable debit column in the cash payments journal for the same
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The columns included in special journals are standardized for all businesses.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Generally, subsidiary ledgers are used for general ledger accounts that consist of a large number of individual items.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. In a computerized accounting system, all postings happen automatically at the end of the month.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-03 05-03

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.06 Recording Transactions ACCT.AICPA.FN.03 Measurement

BUSPROG: Analytic

  1. In computerized accounting systems, reports may be generated at any time.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-03 05-03

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.06 Recording Transactions ACCT.AICPA.FN.03 Measurement

BUSPROG: Analytic

  1. Computerized accounting systems prevent all journalizing errors.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-03 05-03

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.06 Recording Transactions ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Using the Internet to perform business transactions is called e-commerce.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-04 05-04

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.03 Business Forms ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The term B2C refers to transactions conducted between two companies.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-04 05-04

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.03 Business Forms ACCT.AICPA.FN.02 Leveraging Technology ACCT.AICPA.FN.03 Measurement BUSPROG: Technology

  1. E-commerce provides additional business opportunities but at the cost of reduced speed and efficiency.
    1. True
    2. False

 

ANSWER:                                  False

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-04 05-04

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.06 Recording Transactions ACCT.AICPA.FN.02 Leveraging Technology ACCT.AICPA.FN.03 Measurement BUSPROG: Technology

 

 

 

  1. One way to report revenue earned by a company is to present it by the different segments of business.
    1. True
    2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-05 05-05

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.06 Recording Transactions ACCT.AICPA.BB.01 Industry

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. A(n) system is the methods and procedures for collecting, classifying, summarizing and reporting a businesss financial and operating information.
    1. accounting
    2. fiduciary
    3. operations
    4. auditing

 

ANSWER:                                  a

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The phase of accounting system installation in which the information needs of people in the organization are taken into account is
    1. analysis
    2. design
    3. implementation
    4. installation

 

ANSWER:                                  a

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Which of the following is not one of the three phases needed when changing an accounting system, either in its entirety or in part?
    1. analysis
    2. design
    3. review
    4. implementation

 

ANSWER:                                  c

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

  1. Which of the following is not part of a three-step process that a growing business uses for the evolution of its accounting system?
    1. analysis
    2. design
    3. implementation
    4. feedback

 

ANSWER:                                  d

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The three phases of setting up an accounting system are, in order
    1. design, implementation, analysis
    2. analysis, design, implementation
    3. design, analysis, implementation
    4. implementation, design, analysis

 

ANSWER:                                  b

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

  1. The goal of systems design is to meet
    1. when to implement a system
    2. user needs
    3. the size of the competitors system
    4. changes to the present system

 

ANSWER:                                  b

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.AICPA.BB.01 Industry

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

  1. Which of the following is not an element of internal controls?
    1. to protect assets from misuse
    2. ensure the accuracy of business information
    3. ensure that laws and regulations are followed
    4. ensure that company policies are in place to maximize profits

 

ANSWER:                                  d

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.10 Internal Control

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. After an accounting system has been set up, what is the next step?
    1. create the chart of accounts
    2. obtain input from users to analyze and improve the system
    3. implement analysis and design
    4. set up internal controls

 

ANSWER:                                  b

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. Processing methods
    1. are the policies and procedures that protect assets from misuse
    2. must be computerized.
    3. are the means by which the accounting system collects, summarizes, and reports accounting information
    4. ensure that business laws and regulations are followed

 

ANSWER:                                  c

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement ACCT.AICPA.FN.04 Reporting BUSPROG: Analytic

  1. The means by which the accounting system collects, summarizes, and reports accounting information is called information
    1. reporting methods
    2. accounting methods
    3. control methods
    4. processing methods

 

ANSWER:                                  d

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-01 05-01

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.01 Purpose

ACCT.ACBSP.APC.05 Accounting Cycle ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. The primary ledger containing all the balance sheet and income statement accounts is the
    1. general ledger
    2. creditors ledger
    3. customers ledger
    4. subsidiary ledger

 

ANSWER:                                  a

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

  1. The subsidiary ledger that includes customer account activity is called the
    1. asset ledger
    2. accounts payable ledger
    3. expense ledger
    4. accounts receivable ledger

 

ANSWER:                                  d

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Every controlling account must have its own
    1. revenue ledger
    2. general ledger
    3. subsidiary ledger
    4. journal

 

ANSWER:                                  c

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.10 Internal Control

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. At the end of the month, the total of the amount column of the revenue journal is posted as a
    1. debit to Accounts Receivable and a credit to Cash
    2. debit to Accounts Receivable and a credit to Fees Earned
    3. debit to Cash and a credit to Fees Earned
    4. debit to Cash and a credit to Accounts Payable

 

ANSWER:                                  b

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. The controlling account in the general ledger that summarizes the individual customer accounts in the subsidiary ledger is entitled
    1. Purchases
    2. Accounts Payable
    3. Fees Earned
    4. Accounts Receivable

 

ANSWER:                                  d

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.5-02 5-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. 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)
    1. general ledger
    2. income statement ledger
    3. group ledger
    4. subsidiary ledger

 

ANSWER:                                  d

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.18 Special Journals

ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. A purchase of supplies for cash is recorded in the
    1. revenue journal
    2. purchases journal
    3. cash receipts journal
    4. cash payments journal

 

ANSWER:                                  d

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. A purchase of supplies on account is recorded in the
    1. revenue journal
    2. general journal
    3. purchases journal
    4. cash payments journal

 

ANSWER:                                  c

DIFFICULTY:                           Easy

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. Which of the following transactions is recorded in the purchases journal?
    1. purchase of store supplies on account
    2. return of damaged office equipment
    3. purchase of store supplies for cash
    4. purchase of office equipment for cash

 

ANSWER:                                  a

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

  1. When posting column totals in the purchases journal, a credit should be posted to
    1. Merchandise Inventory
    2. Accounts Payable
    3. Sales Returns and Allowances
    4. Cash

 

ANSWER:                                  b

DIFFICULTY:                           Moderate

Blooms: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.05-02 05-02

ACCREDITING STANDARDS:  ACCT.ACBSP.APC.06 Recording Transactions

ACCT.ACBSP.APC.18 Special Journals ACCT.AICPA.FN.03 Measurement BUSPROG: Analytic

 

 

 

  1. In which journal would an adjustment for an overcharge by a creditor be recorded?
    1. general jour

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