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| 1.
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Accounting systems are comprised of the people, forms, procedures, and equipment that are used to capture data about the transactions of an entity and to generate from that data a variety of financial, managerial, and tax accounting reports. |
| | A) | True |
| | B) | False |
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| 2.
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Source documents are the basis for making accounting entries. |
| | A) | True |
| | B) | False |
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| 3.
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A columnar journal is a type of special journal. |
| | A) | True |
| | B) | False |
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| 4.
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The Accounts Receivable account and the Accounts Payable account are controlling accounts. |
| | A) | True |
| | B) | False |
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| 5.
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The purpose of crossfooting a special, columnar journal, is to verify the accuracy of totals of the columns in the journal. |
| | A) | True |
| | B) | False |
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| 6.
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At the end of the month, all entries in the columns of a columnar journal should be posted in summary total to the General Ledger. |
| | A) | True |
| | B) | False |
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| 7.
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A Cheque Register is used for recording receipts and disbursements of cash. |
| | A) | True |
| | B) | False |
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| 8.
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The posting of a sales return for an item that was originally purchased by a credit customer will involve a subsidiary ledger. |
| | A) | True |
| | B) | False |
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| 9.
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Enterprise application software is having only a modest effect on the business operations using these applications and the future market for this software looks bleek. |
| | A) | True |
| | B) | False |
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| 10.
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A listing of each credit customer with an outstanding balance can be found printed on the Schedule of Accounts Payable. |
| | A) | True |
| | B) | False |
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| 11.
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A listing of each supplier with an outstanding balance can be found printed on the Schedule of Accounts Payable. |
| | A) | True |
| | B) | False |
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| 12.
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The sales journal is used to record the sale of merchandise on credit. |
| | A) | True |
| | B) | False |
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| 13.
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The purchase of merchandise, supplies, and equipment on account is recorded in the purchases journal. |
| | A) | True |
| | B) | False |
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| 14.
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It violates the accounting equation that debits equal credits when posting a credit sales transaction to a customer's subledger account and again posting it to the controlling account (accounts receivable) in the general ledger. |
| | A) | True |
| | B) | False |
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| 15.
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When special journals are used, the receipt of cash from a bank loan should be recorded in the general journal. |
| | A) | True |
| | B) | False |
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| 16.
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The sales returns and allowances transaction from a credit customer should be recorded in the sales journal. |
| | A) | True |
| | B) | False |
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| 17.
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The sales discount transaction should be recorded in the cash receipts journal. |
| | A) | True |
| | B) | False |
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| 18.
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Cash sales should be recorded in the sales journal. |
| | A) | True |
| | B) | False |
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| 19.
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Owner's withdrawal of cash from the company for personal expenses should be recorded in the cash disbursement journal. |
| | A) | True |
| | B) | False |
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