Q: Which equation correctly represents the relationship between the general ledger and the subsidiary ledger for accounts receivable?

$$\text{Accounts Receivable (General Ledger)} = \sum \text{Accounts Receivable (Subsidiary Ledger)}$$

Q: A business makes a sale on account for $1,000. What is the correct journal entry?

$$\text{Accounts Receivable} \quad 1,000 \quad \text{Debit}$$ $$\text{Sales Revenue} \quad 1,000 \quad \text{Credit}$$

Question 1

Which of the following is NOT a component of an effective accounting information system?

Accepted Answer

Marketing strategy reports

Question 2

A business records a credit sale of $1,000 to Maria Galvez. Which special journal should be used for this transaction?

Accepted Answer

Sales journal

Question 3

Which equation correctly represents the relationship between the general ledger and the subsidiary ledger for accounts receivable?

Accepted Answer

$$	ext{Accounts Receivable (General Ledger)} = \sum 	ext{Accounts Receivable (Subsidiary Ledger)}$$

Question 4

Which of the following transactions would NOT be recorded in the sales journal?

Accepted Answer

Sale of merchandise inventory for cash

Question 5

A business receives a $580 bill for utilities. In a computerized accounting system, what is the primary advantage of recording this bill?

Accepted Answer

The software automatically posts to the appropriate general ledger accounts.

Question 6

Which special journal is used to record the purchase of merchandise inventory on account?

Accepted Answer

Purchases journal

Question 7

A business pays a vendor $700 for merchandise inventory, taking advantage of a 3% discount. What is the amount paid after the discount?

Accepted Answer

$$700 	imes 0.97 = 679$$

Question 8

Which of the following is a function of an accounting information system (AIS)?

Accepted Answer

Collecting, recording, storing, and processing accounting data

Question 9

Which subsidiary ledger would you use to track amounts owed to vendors?

Accepted Answer

Accounts payable subsidiary ledger

Question 10

In a manual accounting system, why is it important to learn how to use special journals?

Accepted Answer

Learning a manual system helps you master accounting concepts.

Question 11

Which of the following is NOT recorded in the cash receipts journal?

Accepted Answer

Cash payments to vendors

Question 12

What is the primary purpose of subsidiary ledgers in an accounting information system?

Accepted Answer

To hold individual accounts to support a general ledger

Question 13

Which equation represents the calculation of a 3% discount on a $700 purchase?

Accepted Answer

$$700 	imes 0.03 = 21$$

Question 14

Which of the following is a disadvantage of an enterprise resource planning (ERP) system?

Accepted Answer

Major installations are expensive

Question 15

Which special journal is used to record all cash and check payments?

Accepted Answer

Cash payments journal

Question 16

A business makes a sale on account for $1,000. What is the correct journal entry?

Accepted Answer

$$	ext{Accounts Receivable} \quad 1,000 \quad 	ext{Debit}$$ 
 $$	ext{Sales Revenue} \quad 1,000 \quad 	ext{Credit}$$

Question 17

Which of the following transactions would be recorded in the general journal?

Accepted Answer

Adjusting entry for depreciation

Question 18

What is the main advantage of using accounting software like QuickBooks for small businesses?

Accepted Answer

It automates posting to the appropriate general ledger accounts.

Question 19

Which of the following is NOT an advantage of an effective accounting information system?

Accepted Answer

Requires manual calculation of all totals

Question 20

A business records a cash sale for $$517 with a cost of goods sold of 290. $$What is the correct journal entry?

Accepted Answer

$$	ext{Cash} \quad 517 \quad 	ext{Debit}$$ 
 $$	ext{Sales Revenue} \quad 517 \quad 	ext{Credit}$$ 
 $$	ext{Cost of Goods Sold} \quad 290 \quad 	ext{Debit}$$ 
 $$	ext{Merchandise Inventory} \quad 290 \quad 	ext{Credit}$$

Accounting Information Systems: Special Journals and Subsidiary Ledgers

Study Guide - Practice Questions

Study Guide - Flashcards