Deck 7: Accounting for Systems

Question 1

With QuickBooks __________ are the equivalent to MYOB's command centres.

A)Hubs
B)Centres
C)Icons
D)Sections

Answer 1

B

Question 2

The Find Transaction button,which appears in all MYOB command centres,shows:

A)The income statement
B)The balance sheet
C)A record of all the transactions entered in that module in a particular time period
D)The general ledger

Answer 2

C

Question 3

The transaction that could not result in a credit balance in a debtor's account is:

A)Receipt of a deposit for work ordered
B)Return of faulty goods by a customer after payment had been made
C)Payment by a customer after the debt had been written off as irrecoverable
D)Sale of goods on credit that will be paid for in the next accounting period

Answer 3

D

Question 4

The statement about control accounts that is not correct is:

A)They provide summarised data
B)They follow the normal rules of debit and credit
C)They appear in the subsidiary ledger
D)They appear in the trial balance

Question 5

In MYOB,which of these is not a function of the sales module?

A)Preparing invoices
B)Recording sales
C)Recording receipts from customers
D)Recording GST outlays

Question 6

Internal control is defined to include which of the following?

A)Preparation of accounting reports
B)Measures to encourage compliance with business policies
C)Use of the double entry accounting system
D)The elimination of cash deficiencies

Question 7

Z Company uses a subsidiary ledger and control account system for its accounts receivable.At the end of the accounting period a listing of customers' accounts is prepared from the subsidiary ledger.The purpose of this listing is to:

A)Furnish the amount that should be posted to the accounts receivable control account
B)Determine whether the debits equal the credits in the subsidiary ledger
C)Prove that the subsidiary ledger agrees with the control account
D)Provide information necessary for trial balance preparation

Question 8

How many of these are important considerations when developing a new accounting system or expanding an existing system?
I)Compatibility with the type of business
Ii)Flexibility/adaptability
Iii)Adequacy of built-in controls

A)0
B)1
C)2
D)3

Question 9

The assignment of tasks so that the work of one employee acts as a check on the work of another is known as:

A)Division of responsibility
B)Safekeeping
C)Administrative control
D)Collusion

Question 10

How many of these are advantages of using a subsidiary ledger and control account system?
$\bullet$ Removal of a mass of detail from the general ledger
$\bullet$ Division of labour between the general and subsidiary ledgers
$\bullet$ Improved internal control

A)0
B)1
C)2
D)3

Question 11

A column for Discount Received could be found in which journal?

A)General
B)Sales
C)Cash payments
D)Cash receipts

Question 12

If the accounts payable subsidiary ledger shows the following balances on 31 July 2011,what is the balance in the accounts payable control account on the same date? Assuming recording and balancing of accounts payable records are up to date.
$\begin{array} { l l r } \text { - } & \text { Wilson } & \$ 4000 \\\text { - } & \text { Watson } & \$ 15250 \\\text { - } & \text { Zhang } & \$ 8750\end{array}$

A)$0
B)$28 000 Cr
C)$28 000 Dr
D)Cannot be calculated

Question 13

Which of these is the main advantage of setting up special journals:

A)They can be used with a cash accounting system
B)They remove the requirement for double entry recording
C)They reduce the time taken to post to the general ledger
D)They make taking out a trial balance easier

Question 14

Which of these is not an advantage of using special journals compared to recording all transactions in a general journal?

A)Journalising time is reduced
B)Taking out a trial balance is easier
C)Posting to the ledger is quicker
D)Similar transactions are grouped

Question 15

A credit of $540 000,including 10% GST,was posted to the Accounts Payable Control account on the last day of the month.From which special journal would this posting most likely have come?

A)Cash receipts
B)Cash payments
C)Purchases
D)Sales

Question 16

The statement that is incorrect is: In a manual accounting system:

A)Cash sales are recorded in the cash receipts journal
B)Credit sales are recorded in the sales journal
C)Sales of surplus office equipment for cash are recorded in the general journal
D)Sales of non-current assets on credit are recorded in the general journal

Question 17

Kylie is both a debtor and a creditor of Tiger Balm.At the end of the period she owes Tiger Balm $200 while Tiger Balm owes her $1,500.The correct journal entry to offset the amounts against each other is:

A)Debit debtors $200; credit creditors $200
B)Debit creditors $200; credit debtors $200
C)Debit debtors $1,500; credit creditors $1,500
D)Debit creditors $1,500; credit debtors $1,500

Question 18

For which of the following would a subsidiary ledger and control account system not normally be used?

A)Plant and equipment
B)Accounts receivable
C)Inventory
D)Recording cash

Question 19

The general ledger posting from the credit sales journal is:

A)Debit to Accounts Receivable,credit to Sales,credit to GST collections
B)Debit to Sales,credit to GST Collections,credit to Cash
C)Debit to Sales,credit to Accounts Receivable
D)Debit to Cash,debit to GST Collections,credit to Accounts Receivable

Question 20

Details of amounts owed to individual suppliers are found in the:

A)Accounts payable subsidiary ledger
B)Accounts payable control account
C)Accounts receivable subsidiary ledger
D)General ledger

Question 21

Which of these is not one of the three phases in the development of an accounting system?

A)systems analysis,
B)systems design
C)systems implementation and review
D)systems plan

Question 22

In QuickBooks a sales invoice can be created by clicking on the ________ icon in the customers section of the home page.

A)invoices
B)sales
C)credit transaction
D)customer

Question 23

The major accounting functions available with QuickBooks Premier are Suppliers,Customers,E___________ and Banking.

Question 24

Which of these is not a common problem of a computerised accounting system?

A)Computer fraud
B)Power failure
C)Computer viruses
D)Lack of keyboard skills

Question 25

The special journal used to record all cash receipts is the c__________ r___________ journal.

Question 26

The main reason for using special journals and subsidiary ledgers is:

A)to make manual accounting systems operate more efficiently
B)to divide the accounting work up between employees
C)to allow the manual system to be more easily computerised
D)because fewer mistakes are likely to occur

Question 27

Sales of inventory on credit are recorded in the s__________ special journal.

Question 28

Groups of individual accounts whose total should equal the balance of a related control account are known as a s____________ ledger.

Question 29

In comparing computerised and manual accounting systems the correct statement is:

A)A computerised system does not require any reversing entries
B)In computerised systems the use of journals is less important than in a manual system
C)Errors are easier to find in a computerised accounting system
D)A worksheet for adjustments is still often prepared when a computerised system is used

Question 30

How many of these are advantages offered by the use of computers in accounting?
$\bullet$ Faster response time
$\bullet$ Error reduction
$\bullet$ A greater range of reports
$\bullet$ A lower capital outlay

A)One
B)Two
C)Three
D)Four

Question 31

All cash receipts,other than receipts from debtors,are processed through the b_______________ command centre of MYOB AccountRight Plus.

Question 32

A general ledger account supported by the detail of a subsidiary ledger is known as a c__________ account.

Question 33

The procedures adopted by an entity to control its activities and protect its assets are known as its system of i__________ c__________.

Question 34

In an i_______________ accounting package when transactions are entered into one module the computer automatically updates the other modules.

Question 35

Which of these does not normally provide an input into an accounting system?

A)Bank statement
B)Bar code reader
C)Managerial report
D)Invoice

Question 36

Within the MYOB Banking module,the __________________ command allows the balance in the bank account to be verified with the bank statement:

A)Receive Money
B)Reconcile Accounts
C)Spend Money
D)Transaction Journal

Question 37

With MYOB,the chart of accounts is accessed through which module?

A)Banking
B)Payroll
C)Accounts
D)Inventory

Question 38

Credit sales are processed through the s__________ command centre of MYOB AccountRight Plus.

Question 39

Data are recorded facts; i_____________ is data that have been processed so as to be more useful to potential users.