Beruflich Dokumente
Kultur Dokumente
to accompany
Accounting
8th Edition
by
John Hoggett, Lew Edwards,
John Medlin, Matthew Tilling
& Evelyn Hogg
Prepared by
Barbara Burns
Testbank to accompany Accounting 8e
1. 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
a. 0
b. 1
c. 2
d. 3
ANSWER D
Section 7.2
ANSWER B
Section 7.3
3. The assignment of tasks so that the work of one employee acts as a check on the
work of another is known as:
a. Division of responsibility
b. Safekeeping
c. Administrative control
d. Collusion
ANSWER A
Section 7.3
ANSWER C
Section 7.5
5. 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:
a. Furnish the amount that should be posted to the accounts receivable control
account
b. Determine whether the debits equal the credits in the subsidiary ledger
c. Prove that the subsidiary ledger agrees with the control account
d. Provide information necessary for trial balance preparation
ANSWER C
Section 7.5
ANSWER C
Section 7.6
7. For which of the following would a subsidiary ledger and control account system not
normally be used?
a. Plant and equipment
b. Accounts receivable
c. Inventory
d. Recording cash
ANSWER D
Section 7.5
8. How many of these are advantages of using a subsidiary ledger and control account
system?
Removal of a mass of detail from the general ledger
Division of labour between the general and subsidiary ledgers
Improved internal control
a. 0
b. 1
c. 2
d. 3
ANSWER D
Section 7.5
ANSWER A
Section 7.5
10. 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).
Wilson $ 4 000
Watson $15 250
Zhang $ 8 750
a. $0
b. $28 000 Cr
c. $28 000 Dr
d. Cannot be calculated
ANSWER B
Section 7.5
11. Which of these is not an advantage of using special journals compared to recording
all transactions in a general journal?
a. Journalising time is reduced
b. Taking out a trial balance is easier
c. Posting to the ledger is quicker
d. Similar transactions are grouped
ANSWER B
Section 7.6
12. Columns for GST collections could be found in which two special journals?
a. Cash receipts and cash payments
b. Cash receipts and sales
c. Sales and purchases
d. Cash receipts and purchases
Answer B
Section 7.6
ANSWER C
Section 7.6
14. The general ledger posting from the credit sales journal is:
a. Debit to Accounts Receivable, credit to Sales, credit to GST collections
b. Debit to Sales, credit to GST Collections, credit to Cash
c. Debit to Sales, credit to Accounts Receivable
d. Debit to Cash, debit to GST Collections, credit to Accounts Receivable
ANSWER A
Section 7.6
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?
a. Cash receipts
b. Cash payments
c. Purchases
d. Sales
ANSWER C
Section 7.6
ANSWER C
Section 7.6
17. The transaction that could not result in a credit balance in a debtor's account is:
a. Receipt of a deposit for work ordered
b. Return of faulty goods by a customer after payment had been made
c. Payment by a customer after the debt had been written off as irrecoverable
d. Sale of goods on credit that will be paid for in the next accounting period
ANSWER D
Section 7.6
18. 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:
a. Debit debtors $200; credit creditors $200
b. Debit creditors $200; credit debtors $200
c. Debit debtors $1,500; credit creditors $1,500
d. Debit creditors $1,500; credit debtors $1,500
ANSWER B
Section 7.6
19. Alles Supplies bought $10 000 worth of goods from Ajax Pty Ltd on credit. Before
payment was made Ajax, in turn, purchased $4000 worth of stationery on credit from
Alles Supplies. What is the general journal entry in Alles Supplies books to offset the
amount owing to it against the amount it owes?
a. Accounts Receivable, Ajax Ltd $4000
Accounts Payable, Ajax Ltd $4000
b. Accounts Receivable, Ajax Ltd 6000
Accounts Payable, Ajax Ltd 6000
c. Accounts Payable, Ajax Ltd 6000
Accounts Receivable, Ajax Ltd 6000
d. Accounts Payable, Ajax Ltd 4000
Accounts Receivable, Ajax Ltd 4000
ANSWER D
Section 7.6
ANSWER A
Section 7.7
21. The listings of the MYOB AccountRight Plus command centres are:
a. Page Layout, Master Document, Outline
b. Accounts, Banking, Sales, Time Billing, Purchases, Payroll, Inventory, Card File
c. Journal, ledger, Trial balance, Income statement, Balance sheet
d. Invoices, Cheques, Orders, Deposits, Credit Notes
ANSWER B
Section 7.8
Answer A
Section 7.8
23. With QuickBooks __________ are the equivalent to MYOBs command centres.
a. Hubs
b. Centres
c. Icons
d. Sections
ANSWER B
Section 7.8
24. The Find Transaction button, which appears in all MYOB command centres,
shows:
a. The income statement
b. The balance sheet
c. A record of all the transactions entered in that module in a particular time period
d. The general ledger
ANSWER C
Section 7.8
ANSWER D
Section 7.8
26. With MYOB, the chart of accounts is accessed through which module?
a. Banking
b. Payroll
c. Accounts
d. Inventory
ANSWER C
Section 7.8
27. In QuickBooks a sales invoice can be created by clicking on the ________ icon in
the customers section of the home page.
a. invoices
b. sales
c. credit transaction
d. customer
ANSWER A
Section 7.8.
28. Within the MYOB Banking module, the __________________ command allows
the balance in the bank account to be verified with the bank statement:
a. Receive Money
b. Reconcile Accounts
c. Spend Money
d. Transaction Journal
ANSWER B
Section 7.8
ANSWER D
Section 7.9
ANSWER A
Section 7.10
31. How many of these are advantages offered by the use of computers in accounting?
Faster response time
Error reduction
A greater range of reports
A lower capital outlay
a. One
b. Two
c. Three
d. Four
ANSWER C
Section 7.9
32. Which of these does not normally provide an input into an accounting system?
a. Bank statement
b. Bar code reader
c. Managerial report
d. Invoice
ANSWER C
Section 7.1
33. Which of these is not one of the three phases in the development of an accounting
system?
a. systems analysis,
b. systems design
c. systems implementation and review
d. systems plan
ANSWER D
Section 7.2
34. The main reason for using special journals and subsidiary ledgers is:
a. to make manual accounting systems operate more efficiently
b. to divide the accounting work up between employees
c. to allow the manual system to be more easily computerised
d. because fewer mistakes are likely to occur
ANSWER A
Section 7.4
35. In comparing computerised and manual accounting systems the correct statement is:
a. A computerised system does not require any reversing entries
b. In computerised systems the use of journals is less important than in a manual
system
c. Errors are easier to find in a computerised accounting system
d. A worksheet for adjustments is still often prepared when a computerised system
is used
ANSWER B
Section 7.10
1. Data are recorded facts; i_____________ is data that have been processed so as
to be more useful to potential users.
ANSWER information
Section 7.1
2. The procedures adopted by an entity to control its activities and protect its assets
are known as its system of i__________ c__________.
3. Groups of individual accounts whose total should equal the balance of a related
control account are known as a s____________ ledger.
ANSWER subsidiary
Section 7.5
ANSWER control
Section 7.5
ANSWER sales
Section 7.6
6. The special journal used to record all cash receipts is the c__________
r___________ journal.
7. Credit sales are processed through the s__________ command centre of MYOB
AccountRight Plus.
ANSWER sales
Section 7.8
8. All cash receipts, other than receipts from debtors, are processed through the
b_______________ command centre of MYOB AccountRight Plus.
ANSWER banking
Section 7.8
ANSWER integrated
Section 7.7
10. The major accounting functions available with QuickBooks Premier are
Suppliers, Customers, E___________ and Banking.
ANSWER Employees
Section 7.8
QUESTION 7.1
S. Swallowtail uses a sales journal, a cash receipts journal, a general journal, a general
ledger and an accounts receivable subsidiary ledger. The terms of all credit sales are
5/10, n/30.
Accounts receivable balances at 1 August 2011 were:
$
O. Orchard -
E. Emperor 1,700
M. Monarch 360
B. Brown 990
$3,050
SALES JOURNAL
2011 Inv Account Sales GST Accounts
Number Collections Receivable
Aug $ $ $
4 102 O. Orchard 200 20 220
10 103 E. Emperor 500 50 550
30 104 M. Monarch 100 10 110
800 80 $880
GENERAL JOURNAL
REQUIRED:
a) Set up the general ledger accounts, post from the journals to the general ledger
and balance the accounts at 31 August 2011.
c) Set up the accounts receivable subsidiary ledger accounts, post from the journals
to the accounts receivable subsidiary ledger and balance the accounts.
QUESTION 7.2
The International Company presents the following information:
PURCHASES JOURNAL
Date Inv Account Purchases GST Accounts
Outlays Payable
2011 $ $ $
Nov 3 1442 Malaysia 1,190 119 1,309
Nov 4 12AA Singapore 580 58 638
16019 Hong Kong 2,000 200 2,200
Nov 7 1A57 K Korea 110 11 121
Nov 13 943 Malaysia 2,230 223 2,453
Nov 15 1760 Indonesia 60 6 66
$6,170 $617 $6,787
GENERAL JOURNAL
Date Account Debit Credit
2011 $ $
Nov 9 Accounts payable control (Singapore) 35
Purchases returns 35
REQUIRED:
a) Post the relevant information from the journals to the general ledger accounts
payable control account. Balance the account. (Do not post to the other general
ledger accounts).
b) Set up the accounts payable subsidiary ledger accounts. Post from the journals
to the accounts payable subsidiary ledger and balance the accounts.
c) Reconcile the subsidiary ledger to the accounts payable control account by
means of a schedule of creditors balances as at 30 November 2011.
QUESTION 7.3
Indicate the proper journal to use to record each of the following transactions. Use S
for sales journal, P for purchases journal, CR for cash receipts journal, CP for cash
payments journal, and GJ for general journal.
GST Collections
2011 $ 2011 $
Aug 31 CRJ 1 Aug 1 Balance 480
GJ 9 31 SJ 80
31 Balance 760 31 CRJ 210
$770 $770
31 Balance 760
Sales
2011 $ 2011 $
Aug 1 Balance 19,580
31 SJ 800
31 CRJ 2,100
22,480
Discount Allowed
2011 $ 2011 $
Aug 1 Balance 480
31 CRJ 10
490
Other accounts
2011 $ 2011 $
Aug 1 Balance 3,590
b)
Trial Balance as at 31 August 2011
Account Title Account Balances
Dr Cr
$ $
Cash at bank 23,899
Accounts receivable control 1,551
GST collections 760
Sales 22,480
Sales returns & allowances 890
Discount allowed 490
Other accounts 3,590
$26,830 $26,830
O. Orchard
2011 $ 2011 $
Aug 4 SJ 220 Aug 13 CRJ 220
E. Emperor
2011 $ 2011 $
Aug 1 Balance 1,700 Aug 31 CRJ 1,700
10 SJ 550 31 Balance 550
$2,250 $2,250
31 Balance 550
M. Monarch
2011 $ 2011 $
Aug 1 Balance 360 Aug 8 CRJ 360
30 SJ 110 31 Balance 110
$470 $470
31 Balance 110
B. Brown
2011 $ 2011 $
Aug 1 Balance 990 Aug 3 GJ (returns) 99
31 Balance 891
$990 $990
31 Balance 891
d)
Schedule of Debtors Balances as at 31 August 2011
$
E. Emperor 550
M. Monarch 110
B. Brown 891
Balance as per control account $1,551
S. Singapore
2011 2011
Nov 7 CPJ 1,000 Nov 1 Balance 1,000
9 GJ 35 4 PJ 638
Balance 603 ___
$1,638 $1,638
Balance 603
M. Malaysia
Nov 13 CPJ 4,200 Nov 1 Balance 4,200
Balance 3,762 Nov 3 PJ 1,309
____ 13 PJ 2,453
$7,962 $7,962
Balance 3,762
I. Indonesia
Nov 7 CPJ 500 Nov 1 Balance 500
Balance 66 Nov 15 PJ 66
$566 $566
Balance 66
H. Hong Kong
Nov 19 C PJ 6,400 Nov 1 Balance 6,400
Balance 2,200 Nov 4 PJ 2,200
$8,600 $8,600
Balance 2,200
K. Korea
Nov 7 PJ 121
$
S. Singapore 603
M. Malaysia 3,762
I. Indonesia 66
H. Hong Kong 2,200
K. Korea 121
Balance as per creditors control A/c $6,752
a. CP
b. CP
c. GJ
d. CP
e. CR
f. P
g. CR
h. GJ
i. CP
j. S
k. CP
l. GJ or P