2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt Chart of Accounts Effective Accounting Systems MiscJournals Posting & Balancing

What type of account would have an account number like this:

Liabilities

Which account number would represent a customer’s account number? a b c d

Which account number would represent a customer’s account number? a Assets (accounts receivable) start with 1

What number do all expenses start with in the chart of accounts?

All expenses start with 5

Which accounts start with the number 4?

Revenues start with the number 4

List the 5 categories and numbers in the chart of accounts

Assets – 1 Liabilities – 2 Owner’s Equity – 3 Revenues – 4 Expenses – 5

What do internal controls safeguard your assets from?

Internal controls safeguard your assets and eliminate waste

An important characteristic of an effective accounting system is that the system provides the most benefit for the least cost? True or False

TRUE

Flexibility means being able to accommodate changes in your business over time TRUE OR FALSE

TRUE

Compatibility means you get the most benefit for the least cost True or False?

False Compatibility means it works smoothly with your personnel and organizational structure

Which of the following are important design features of an effective accounting system? a.Flexibility b.Compatibility c.Control d.All of the above

Which of the following are important design features of an effective accounting system? a.Flexibility b.Compatibility c.Control d.All of the above

What is the first step in computerized data processing? a. Source documents b. Orders c. Inputs d. processing

What is the first step in computerized data processing? a. Source documents b. Orders c. Inputs d. processing

What is the second step in computerized data processing? a. Source documents b. Orders c. Inputs d. processing

What is the second step in computerized data processing? a. Source documents b. Orders c. Inputs d. processing

What is the last step in computerized data processing? a. Inputs b. Processing c. Outputs d. invoices

What is the last step in computerized data processing? a. Inputs b. Processing c. Outputs d. invoices

Which of the following is the beginning step in designing an accounting system? a.The previous year’s adjusted trial balance b.Classification of transactions c.The chart of accounts d.Determination of menu structure

Which of the following is the beginning step in designing an accounting system? c. The chart of accounts

Which of the following are computer programs that link data by means of formulas and functions? a.Special journals b.Networks c.QuickBooks d.Spreadsheets

Which of the following are computer programs that link data by means of formulas and functions? D. Spreadsheets

In which journal would the sale of merchandise for cash be recorded?

The Cash Receipts Journal

In which journal would you record a return of merchandise sold on account?

The general journal

In which journal would sale of goods on account be recorded?

Sales Journal

In which journal would you record all check payments?

Cash Payments Journal

In which journal would you record a purchase of inventory on account?

Purchases Journal

When (or how often) should the total in accounts receivable column in the cash receipts journal be posted to the general ledger?

Monthly

When (or how often) should the individual amounts in the cash payments journal be posted to the Accounts Payable Ledger?

Daily

The total of all subsidiary accounts receivable should equal what?

Accounts receivable (control account)

Accounts payable should equal the sum of what?

Sum of individual supplier accounts payable

In the General Journal, when balancing the Ledgers…. What should equal what???

Total debits should equal total credits Always!