Question

1-A(n) ____ system is the methods and procedures for collecting, classifying, summarizing, and reporting a business's financial and operating information.

a.operations

b.accounting

c.fiduciary

d.auditing

2-Which of the following is not one of the three phases needed when changing an accounting system, either in its entirety or in part?

a.analysis

b.review

c.design

d.implementation

3-The three phases of setting up an accounting system in correct order are

a.implementation, design, analysis

b.design, analysis, implementation

c.design, implementation, analysis

d.analysis, design, implementation

4-After an accounting system has been set up, what is the next step?

a.Implement analysis and design.

b.Create the chart of accounts.

c.Obtain input from users to analyze and improve the system.

d.Set up internal controls.

5-The means by which the accounting system collects, summarizes, and reports accounting information is called information

a.processing methods

b.accounting methods

c.control methods

d.reporting methods

6-The subsidiary ledger that includes customer account activity is called the

a.accounts payable ledger

b.asset ledger

c.accounts receivable ledger

d.expense ledger

7-At the end of the month, the total of the amount column of the revenue journal is posted as a

a.debit to Cash and a credit to Accounts Payable

b.debit to Cash and a credit to Fees Earned

c.debit to Accounts Receivable and a credit to Fees Earned

d.debit to Accounts Receivable and a credit to Cash

8-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.subsidiary ledger

b.general ledger

c.group ledger

d.income statement ledger

9-A purchase of supplies on account is recorded in the

a.purchases journal

b.revenue journal

c.general journal

d.cash payments journal

10-Segment data

a.is only useful by product line

b.is gathered from invoices entered into the accounting system

c.can be used for vertical, but not horizontal analysis

d.analysis is required by GAAP

11-Which of the following is not an area where the Internet is used for business purposes?

a.supply chain management

b.business cycle management

c.customer relationship management

d.product life-cycle management

12-

Computerized accounting systems

a.improve the timeliness of reporting

b.prevent all journalizing errors

c.are only used in medium and large businesses

d.provide a tedious form of record keeping

13-

The total on the "Cash Receipts" report generated by QuickBooks® software at January 31 would be equal to the

a.total of the Cash Dr. column of the cash receipts journal in a manual system

b.total revenue earned for the month of January

c.balance in Accounts Receivable at January 31

d.total of the purchases journal on January 31

14-

A basic manual accounting system includes all of the following except a

a.computer on which the system runs

b.chart of accounts

c.two-column journal

d.general ledger

Answer 1

Question No. (1)

Answer -

An accounting system is the methods and procedures for collecting, classifying, summarizing, and reporting a business's financial and operating information.

Hence, Option - (b) is Correct.

.

Question No. (2)

Answer -

Review is not one of the three phases needed when changing an accounting system, either in its entirety or in part.

Hence, Option - (b) is Correct.

.

Question No. (3)

Answer -

The three phases of setting up an accounting system in correct order are -

• Analysis, Design, Implementation

Hence, Option - (d) is Correct.

.

Question No. (4)

Answer -

After an accounting system has been set up, the next step to obtain input from users to analyze and improve the system.

Hence, Option - (c) is Correct.

.

Question No. (5)

Answer -

Option - (a) - Processing Methods is Correct.

.

Question No. (6)

Answer -

The subsidiary ledger that includes customer activity is called the accounts receivable ledger.

Hence, Option - (c) is Correct.

.

Question No. (7)

Answer -

Debit to Accounts Receivable and a credit to Fees earned

Hence, Option - (c) is Correct.

.

Question No. (8)

Answer -

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 subsidiary ledger.

Hence, Option - (a) is Correct.