Deck 7: Accounting for Systems

Question 1

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

A) Bank deposit slip
B) Sales invoice
C) Invoice
D) Managerial report

Answer 1

D

Question 2

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.

Answer 2

A

Question 3

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

A) assurance compliance.
B) division of responsibility.
C) administrative control.
D) collusion.

Answer 3

B

Question 4

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 5

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
$\bullet$ Ease of operation by responsible staff
$\bullet$ Improved internal control

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

Question 6

Which of these is not a physical means of internal control?

A) The employment of security staff
B) Employee identification cards
C) Authorisation
D) Fire alarms

Question 7

In the development of an accounting system which stage involves: 'determining personnel requirements, source documents, accounting records and procedures, reports and reports formats'?

A) Systems analysis
B) Systems design
C) Systems implementation
D) Systems review

Question 8

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 9

Preston Ltd 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 10

Data that have been processed in some prescribed manner so as to be more useful to potential users is called:

A) facts.
B) details.
C) proof.
D) information.

Question 11

_________________are internal controls established to provide general operational efficiency and adherence to prescribed policies,e.g. procedure manuals.

A) Division of responsibility
B) Accounting controls
C) Administrative controls
D) Programming controls

Question 12

Which of these is not usually an important consideration in developing an accounting system?

A) Cost versus benefits
B) Systems used by other industries
C) Compatibility with the organisation's other systems
D) Flexibility

Question 13

How many of these are important considerations when developing a new accounting system or expanding an existing system?
$\bullet$ Compatibility with the type of business
$\bullet$ Flexibility/adaptability
$\bullet$ Only fully understandable by senior managers
$\bullet$ Adequacy of built-in controls

A) 1
B) 2
C) 3
D) 4

Question 14

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

A) Plant and equipment
B) Bank loan
C) Inventory
D) Accounts receivable

Question 15

If the accounts payable subsidiary ledger shows the following balances on 31 July 2014, 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.)
$\bullet$ Wilson $ 9320
$\bullet$ Watson $6255
$\bullet$ Zhang $ 700

A) $0
B) $16 275 Dr
C) $16 275 Cr
D) Cannot be calculated from the information given

Question 16

Which of the following statements is true?

A) There is double entry recording in a subsidiary ledger.
B) A business with three credit customers would need to set up an accounts receivable subsidiary ledger.
C) With a manual accounting system, where there is a control account and a subsidiary ledger for debtors, transactions for debtors must be recorded twice.
D) Every business needs to set up special journals for returns transactions.

Question 17

A system of computer processing where transactions are processed as they occur is called:

A) group processing.
B) batch processing.
C) online processing.
D) integrated processing.

Question 18

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 19

The limitation of internal control includes all of the following except:

A) collusion.
B) the size of the entity.
C) human nature.
D) separation of record keeping and custodianship.

Question 20

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 21

Which of these is not a column heading in a sales journal?

A) Date of sale
B) Customer's name
C) Invoice number
D) Bank

Question 22

A general ledger account that summarises the detail maintained in subsidiary records is called a:

A) master account.
B) special account.
C) key account.
D) control account.

Question 23

Which transaction would be recorded in the cash payments journal?

A) Payment of wages
B) Purchase of inventory on credit
C) The accrual of rent at the end of the accounting period
D) A payment by the owner of his personal expenses from his private cheque book

Question 24

What is the general ledger posting from the credit sales journal?

A) Debit to cash, debit to GST collections, credit to accounts receivable
B) Debit to accounts receivable, credit to sales, credit to GST collections
C) Debit to sales, credit to accounts receivable
D) Debit to sales, credit to GST collections, credit to cash

Question 25

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 26

A column for discount received could be found in which journal?

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

Question 27

Which of these is not an advantage of using a sales journal compared with recording all sales transactions in a general journal?

A) Each sales transaction is recorded on a single line
B) The debit and credit for the sale are clearly identified
C) Only the totals of each column are posted to the general ledger
D) No narrations are required

Question 28

Columns for GST collections could be found in which two special journals?

A) Cash receipts and cash payments
B) Cash receipts and purchases
C) Sales and purchases
D) Cash receipts and sales

Question 29

Which of the following statements is correct? In a manual accounting system:

A) cash sales are recorded in the cash receipts journal.
B) cash sales are recorded in the sales journal.
C) cash sales are recorded in the general journal.
D) sales of non-current assets on credit are recorded in the sales journal.

Question 30

A column for discount allowed could be found in which special journal?

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

Question 31

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.

Question 32

Columns for GST collections could be found in which two special journals?

A) Cash receipts and cash payments
B) Cash receipts and sales
C) Cash payments and purchases
D) Sales and purchases

Question 33

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 34

Subsidiary ledgers in a manual accounting system have three main advantages. Which of the following is not one of the advantages of subsidiary ledgers?

A) They remove a mass of detail from the general ledger.
B) They allow a division of labour in maintaining the general and subsidiary ledgers.
C) They dramatically reduce the occurrence of bad debts.
D) They improve internal control through the reconciliation of the control account with the subsidiary ledger.

Question 35

Individual stock records for a retail company are an example of:

A) a subsidiary ledger.
B) a special journal for inventory.
C) a manual accounting system.
D) a control account.

Question 36

What are the source documents for preparing the cash payments journal?

A) Receipts
B) Credit notes
C) Cheque butts
D) Contracts

Question 37

Which of the following transactions would not be recorded in the cash receipts journal?

A) Sale of inventory for cash
B) Sale of a second hand photocopier for cash
C) Money borrowed from a finance company
D) Cash refund to a customer for goods returned by them

Question 38

All the details of transactions between the firm and individual suppliers are found in the:

A) accounts receivable subsidiary ledger.
B) accounts payable control account.
C) accounts payable subsidiary ledger.
D) sales journal.

Question 39

The posting reference column in the general ledger is used to show the source journal for the transaction. Which of the following symbols is commonly used as a posting reference to refer to page 2 of the cash payments journal?

A) 2PJ
B) CPJ2
C) P2CJ
D) C2P

Question 40

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 41

Bruce is both a debtor and a creditor of Mayo Ltd. At the end of the period she owes Mayo Ltd $400 while Mayo Ltd owes her $1500. What is the correct journal entry to offset the amounts against each other?

A) Debit debtors $400; credit creditors $400
B) Debit debtors $1500; credit creditors $1500
C) Debit creditors $400; credit debtors $400
D) Debit creditors $1500; credit debtors $1500

Question 42

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 $1500. After offsetting the amounts how much is still owing to or from Kylie in Tiger Balm's books?

A) Kylie (creditor) is owed $1300
B) Kylie (debtor) owes $1300
C) Kylie (creditor) is owed $1700
D) Kylie (debtor) owes $200

Question 43

Which of these is not an advantage of a computerised accounting system compared to a manual system?

A) A reduction in processing costs
B) More up-to-date reports
C) Greater possibility of a catastrophic systems failure
D) Improved reporting and decision making

Question 44

With MYOB AccountRight Plus cash sales are recorded through which module?

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

Question 45

Which of these is not a general ledger software package?

A) Attache
B) MYOB
C) Excel
D) QuickBooks

Question 46

What are the listings of the MYOB AccountRight Plus command centres?

A) Page Layout, Master Document, Outline
B) Accounts, Banking, Sales, Time Billing, Purchases, Payroll, Inventory, Card File
C) Journal, ledger, Trial balance, Income statement, Balance sheet
D) Invoices, Cheques, Orders, Deposits, Credit Notes

Question 47

In MYOB AccountRight Plus screens that present icons for the functions of each of the seven modules, are known as:

A) Menu bars.
B) Dialog boxes.
C) Command centres.
D) Templates.

Question 48

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

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

Question 49

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 50

Which of these is not a computerised accounting package?

A) MYOB
B) SPSS
C) ACCPAC
D) QuickBooks

Question 51

In MYOB, what are customers known as?

A) Buyers
B) Customers
C) Creditors
D) Vendors

Question 52

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.

Question 53

Computerised accounting packages offer a selection of _________________ covering the various accounting functions, such as, general ledger, sales, payroll, etc.

A) spreadsheets
B) files
C) modules
D) registers

Question 54

Alles Supplies bought $10 000 worth of goods from Ajax Pty Ltd on credit. Before payment was made Ajax, in turn, purchased $4000 worth of stationery on credit from Alles Supplies. What is the general journal entry in Alles Supplies books to offset the amount owing to it against the amount it owes?

A)
B)
C)
D)

Question 55

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 56

Which of these is not a problem of computerised accounting systems?

A) Inability to network the systems
B) Power failures
C) Computer viruses
D) Computer fraud

Question 57

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 58

In MYOB details of customers', suppliers' and employees' addresses, contact information, credit terms and so on are stored in the:

A) Inventory command centre.
B) Card file.
C) Accounts command centre.
D) Banking command centre.

Question 59

Bank deposits, other than receipts from customers,e.g. interest received, are recorded in which MYOB AccountRight Plus module?

A) Accounts
B) Banking
C) Sales
D) Accounts

Question 60

How many of these are disadvantages sometimes encountered with the use of computers in accounting?
$\bullet$ Faster response time
$\bullet$ Viruses
$\bullet$ Reduction in processing costs
$\bullet$ Automatic posting

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

Question 61

Which step is not performed automatically in a computerised accounting system?

A) The initial inputting of transactions
B) Posting to the ledger
C) Preparing a trial balance
D) Recording closing entries

Question 62

In comparing the operation of a manual accounting system with a computerised
system which of the following is incorrect?
Step in the Accounting Cycle, Manual System, Computerised

A) Journalise transactions -Manual- Automatic
B) Post to ledger accounts- Manual- Automatic
C) Prepare trial balance- Manual- Automatic
D) Prepare closing entries- Manual- Automatic

Question 63

In comparing computerised and manual accounting systems, which of the following statements is correct?

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