Question 1

If a company uses special journals

Accepted Answer

Special journals are designed to meet the specific needs of a company, so the quantity and design can vary depending on the nature of the business and the volume of transactions. There is no specific requirement for the number of special journals a company should have, so option B is incorrect. While a company may have a special journal for cash, receivables, and payables, this is not a mandatory requirement, so option A is also incorrect. FASB sets accounting standards but does not dictate the design of special journals, so option D is incorrect.

Question 2

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

Accepted Answer

The answer of Mocha Coffee Shop has asked the accountant...

Question 3

An adjustment resulting from a creditor charging too much for merchandise would be recorded in the:

Accepted Answer

The general journal is where all types of adjustments, including adjustments for overcharges made by creditors, are recorded. The purchases journal is specifically for purchases made on credit, the cash payments journal is for recording cash transactions related to payments made by the company, and the cash receipts journal is for recording cash transactions related to receipts received by the company.

Question 4

A computerized accounting system will not allow which of the following type of journalizing error?

Accepted Answer

A computerized accounting system will not allow processing a transaction that has unequal debits and credits, as the system will require the entry to balance. However, the other options are possible errors that can occur in a manual or computerized accounting system.

Question 5

What is meant by the term B2C?

Accepted Answer

B2C stands for "Business to Consumer", referring to transactions between businesses and individual consumers, where the business sells products or services directly to the end consumer.

Question 6

Which of the following accounts normally has a subsidiary ledger?

Accepted Answer

Accounts payable normally have a subsidiary ledger to track individual balances owed to different suppliers or vendors.

Question 7

Processing methods:

Accepted Answer

The answer of Processing methods:
...

Question 8

Which of the following is not an advantage of a computerized system over a manual system?

Accepted Answer

Internal controls are still necessary with a computerized system to ensure the accuracy and reliability of the data. Not having internal controls in place could actually increase the risk of errors or fraud.

Question 9

Which of the following statements is false?

Accepted Answer

Subsidiary ledgers and special journals can be useful for businesses of any size, not just small ones, to organize and track large volumes of similar transactions.

Question 10

Computerized accounting systems

Accepted Answer

Computerized accounting systems improve the timeliness of reporting by automating many of the recordkeeping processes and producing real-time reports. While they can reduce errors, they do not prevent all journalizing errors. Additionally, computerized accounting systems are used by businesses of all sizes, not just medium and large businesses.

Question 11

E-commerce

Accepted Answer

E-commerce can improve the speed and efficiency of transactions.

Question 12

Beachside Coffee Shop, in an effort to stream line its accounting system, has decided to utilize a Cash Receipts Journal in its operation. If the company is to record the cash sale of food for $18 which is the correct entry?

Accepted Answer

The entry for a cash sale of food would involve a debit to Cash and a credit to Food Revenue. Therefore, option C (Cash Dr. $18, Food Revenue Cr. $18) is the correct entry. Option A (Cash Cr. $18, Food Revenue Dr. $18) has the accounts reversed. Option B (Cash Dr. $18, Food Revenue Dr. $18) has two debit accounts and no credit account. Option D (Cash Cr. $18, Food Revenue Cr. $18) has two credit accounts and no debit account.

Question 13

Computerized accounting systems

Accepted Answer

Computerized accounting systems record and post transactions at the same time, unlike manual systems where transactions are recorded in a journal first and then posted to the ledger. These systems are used by companies of all sizes and do not require special journals. They are generally more accurate and efficient than manual systems.

Question 14

Month-end posting to controlling accounts in a computerized accounting system is not required because

Accepted Answer

In a computerized accounting system, transactions are posted to accounts immediately, so month-end posting to controlling accounts is not required.

Question 15

Which transaction is normally recorded in a special journal?

Accepted Answer

Purchases on account are normally recorded in a special journal called the purchases journal. The other transactions listed would typically be recorded in different journals (sales returns in the sales returns and allowances journal, depreciation expense in the general journal, and issued stock dividend in the stockholders' equity journal).

Question 16

Beachside Coffee Shop, in an effort to stream line its accounting system, has decided to utilize a Cash Receipts Journal in its operation. What will be recorded on the post ref column of this transaction?

Accepted Answer

The question does not provide any information or context regarding the transaction or what is being recorded, therefore it is impossible to determine what will be recorded in the post ref column. The correct answer is option D, which indicates that there is no answer or choice available for this question.

Question 17

The total on the "Cash Receipts" report at January 31 should equal

Accepted Answer

The "Cash Receipts" report shows all the cash received by the company during the month of January. Therefore, the total of the Cash Debit column of the cash receipts journal should equal the total on the "Cash Receipts" report at January 31. Choices A, B, and D are incorrect because they do not relate to the cash received by the company during the month of January.

Question 18

When using a purchases journal

Accepted Answer

The answer of When using a purchases journal
...

Question 19

Which of the following could not be considered a business segment?

Accepted Answer

All of these could be considered business segments. Business segments can be based on various factors including region, product, customer type, and many others. Therefore, all the given options could be considered business segments.

Question 20

In addition to B2B and B2C transactions, e-commerce is commonly used in all of the following business activities except:

Accepted Answer

E-commerce is not typically used for regulatory compliance management, which involves ensuring business compliance with laws and regulations. E-commerce is more commonly used for supply chain management, customer relationship management, and product life cycle management.

Quiz 5: Accounting Systems

If a company uses special journals

Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?

An adjustment resulting from a creditor charging too much for merchandise would be recorded in the:

A computerized accounting system will not allow which of the following type of journalizing error?

What is meant by the term B2C?

Which of the following accounts normally has a subsidiary ledger?

Processing methods:

Which of the following is not an advantage of a computerized system over a manual system?

Which of the following statements is false?

Computerized accounting systems

E-commerce

Beachside Coffee Shop, in an effort to stream line its accounting system, has decided to utilize a Cash Receipts Journal in its operation. If the company is to record the cash sale of food for $18 which is the correct entry?

Computerized accounting systems

Month-end posting to controlling accounts in a computerized accounting system is not required because

Which transaction is normally recorded in a special journal?

Beachside Coffee Shop, in an effort to stream line its accounting system, has decided to utilize a Cash Receipts Journal in its operation. What will be recorded on the post ref column of this transaction?

The total on the "Cash Receipts" report at January 31 should equal

When using a purchases journal

Which of the following could not be considered a business segment?

In addition to B2B and B2C transactions, e-commerce is commonly used in all of the following business activities except: