Question 1

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

Accepted Answer

In QuickBooks, "Centres" are the equivalent to MYOB's command centres. They are where you can perform various accounting tasks such as managing customers, vendors, and employees, as well as keeping track of banking transactions, inventory, and reports.

Question 2

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

Accepted Answer

The Find Transaction button allows users to search for and display a record of all the transactions entered in a specific module (such as sales or purchases) during a particular time period. It does not show the income statement, balance sheet, or general ledger.

Question 3

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

Accepted Answer

A sale of goods on credit increases the debtor's account balance, but it does not create a credit balance.

Question 4

The statement about control accounts that is not correct is:

Accepted Answer

Control accounts do not appear in the subsidiary ledger, as they are used to summarise data from the subsidiary ledger. The subsidiary ledger contains detailed information about individual accounts, while the control account provides a summary of those accounts.

Question 5

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

Accepted Answer

Recording GST outlays is a function of the accounting or tax modules, not the sales module. The sales module is primarily used for preparing invoices, recording sales, and recording receipts from customers.

Question 6

Internal control is defined to include which of the following?

Accepted Answer

Internal control includes measures and procedures put in place to encourage compliance with business policies and regulations. Preparation of accounting reports, use of the double-entry accounting system, and the elimination of cash deficiencies are all examples of specific activities that may occur within internal control systems, but they are not comprehensive definitions of internal control itself.

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:

Accepted Answer

The purpose of preparing a listing of customers' accounts from the subsidiary ledger is to prove that the subsidiary ledger agrees with the control account. This is important for ensuring that the accounts receivable balance reported on the balance sheet is accurate. The other options are not the main purpose of preparing this listing.

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

Accepted Answer

All three considerations are important when developing or expanding an accounting system: compatibility ensures the system meets business needs, flexibility allows for future changes, and built-in controls ensure data integrity and security.

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:

Accepted Answer

Division of responsibility refers to allocating tasks in a way that the work of one employee acts as a check on the work of another. This helps in ensuring accountability and reducing the risk of errors or fraud that may result from one employee having unchecked control over a particular task. Option B, Safekeeping, refers to the process of safeguarding assets against losses, theft or damage. Option C, Administrative control, is a broader term that may involve elements of division of responsibility and safekeeping but encompasses a range of activities that focus on achieving organizational objectives. Option D, Collusion, refers to a situation where two or more employees work together to commit fraud, misappropriate assets or engage in other unethical behavior.

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

Accepted Answer

All three options listed are advantages of using a subsidiary ledger and control account system.

Question 11

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

Accepted Answer

The column for Discount Received would be found in the Cash payments journal as it represents a reduction in the amount of cash paid for an invoice or transaction.

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.
$\begin{array} { l l r } 
\text { - } & \text { Wilson } & \$ 4000 \
\text { - } & \text { Watson } & \$ 15250 \
\text { - } & \text { Zhang } & \$ 8750
\end{array}$

Accepted Answer

The balance in the accounts payable control account should equal the total of the balances in the accounts payable subsidiary ledger. Adding the balances: $4000 + $15250 + $8750 = $28000. Since accounts payable is a liability, it is a credit balance.

Question 13

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

Accepted Answer

Setting up special journals reduces the time taken to post to the general ledger by grouping similar transactions together and recording them in a single journal. This makes the process of posting to the general ledger faster and more efficient.

Question 14

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

Accepted Answer

Taking out a trial balance is not easier with special journals as each journal will need to be totaled separately before compiling the trial balance.

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?

Accepted Answer

The posting of a credit for $540,000 including 10% GST to the Accounts Payable Control account indicates that the business made a purchase on credit from a supplier. This would involve the use of the Purchases Journal to record the transaction. Additionally, the fact that the credit includes 10% GST also suggests that this is a purchase of goods or services subject to tax, which would further support the use of the Purchases Journal. Therefore, the most likely special journal from which this posting came is the Purchases Journal.

Question 16

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

Accepted Answer

Sales of surplus office equipment should be recorded in the general journal, not the cash receipts journal, as it is not a regular sales transaction.

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:

Accepted Answer

The correct entry is to debit creditors (reduce liability) and credit debtors (reduce asset) by the amount Kylie owes, which is $200.

Question 18

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

Accepted Answer

Subsidiary ledger and control account system is not necessary for recording cash transactions as the cash account itself acts as the primary ledger for recording all cash inflows and outflows.

Question 19

The general ledger posting from the credit sales journal is:

Accepted Answer

The general ledger posting from the credit sales journal is to debit Accounts Receivable, credit Sales, and credit GST Collections. This is because when a sale is made on credit, the customer owes the business money (Accounts Receivable), the business has earned revenue (Sales), and the business has collected GST (GST Collections).

Question 20

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

Accepted Answer

The accounts payable subsidiary ledger contains the details of amounts owed to individual suppliers, while the accounts payable control account is a summary of all the amounts owed to suppliers in the general ledger. The accounts receivable subsidiary ledger contains the details of amounts owed to a company by individual customers, and the general ledger contains summary accounts for all the company's transactions.

Quiz 7: Accounting for Systems