Question 1

Hodges Ltd uses a subsidiary ledger and control account system for its accounts receivable. At the end of the accounting period a list of customers' accounts and balances owing is prepared from the subsidiary ledger. The purpose of this customer list is to:

Accepted Answer

A)   determine the amount that should be posted to the accounts receivable control account.
B)   establish whether the total debits and total credits in the subsidiary ledger are equal.
C)   provide information necessary for the completion of the trial balance.
D)   prove that the subsidiary ledger agrees with the control account.E) B) and C)
F) C) and D)

Question 2

Details of amounts owed by individual debtors are found in the:

Accepted Answer

A)   accounts payable subsidiary ledger.
B)   accounts payable control account.
C)   accounts receivable subsidiary ledger.
D)   general ledger.E) A) and B)
F) None of the above

Question 3

Data that have been processed in some prescribed manner to be more useful for decision making is called:

Accepted Answer

A)   output.
B)   details.
C)   information.
D)   input.E) None of the above
F) A) and B)

Question 4

Cathy is both a debtor and a creditor of Palm Ltd. At the end of the period Cathy owes Palm Ltd $500 while Palm Ltd owes Cathy $2000. After offsetting the amounts, Palm Ltd's books show a balance of how much as still owing to or from Cathy?

Accepted Answer

A)   Cathy (creditor)  is owed $1500
B)   Cathy (debtor)  owes $1500
C)   Cathy (creditor)  is owed $2500
D)   Cathy (debtor)  owes $2500E) None of the above
F) A) and B)

Question 5

Source documents used for the preparation of the cash payments journal include:

Accepted Answer

A)   Receipts to customers
B)   Credit notes issued by suppliers
C)   Signed contracts
D)   Cheque buttsE) All of the above
F) None of the above

Question 6

The three phases in the development of an accounting system are:
I. Systems analysis
II. Systems plan
III. Systems design
IV. Systems implementation and review

Accepted Answer

A)   I, II, and III
B)   I, III and IV
C)   I, II, and IV
D)   II, III and IVE) A) and B)
F) All of the above

Question 7

How many of the following are important considerations when developing a new accounting system or expanding an existing system?
 ∙\bullet∙ Flexibility/adaptability with a growing business
 ∙\bullet∙ Only fully understandable by senior managers
 ∙\bullet∙ Compatibility with the business operations
 ∙\bullet∙ Adequacy of built-in controls for business protection

Accepted Answer

A)   1
B)   2
C)   3
D)   4 E) A) and B)
F) B) and C)

Question 8

Which automatic procedure is an advantage of computerised accounting systems?

Accepted Answer

A)   Posting to general ledger.
B)   Production of sales invoices.
C)   Preparation of financial statements.
D)   All of these options.E) C) and D)
F) B) and D)

Question 9

The limitations of internal control systems include:

Accepted Answer

A)   absolute assurance for safeguarding against customer theft.
B)   employee indifference to correct procedures.
C)   cost of implementation.
D)   all of these options.E) None of the above
F) B) and C)

Question 10

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

Accepted Answer

A)   Preparation of a trial balance is easier.
B)   Time required to journalise transactions is reduced.
C)   Posting to the ledger is more efficient.
D)   Similar transactions are grouped.E) B) and C)
F) A) and B)

Question 11

In comparing computerised and manual accounting systems, which of the following statements is correct?

Accepted Answer

A)   A computerised system does not require any reversing entries.
B)   Errors are easier to find in a computerised accounting system.
C)   In computerised systems, the use of journals is less important than in a manual system.
D)   A worksheet for adjustments is still often prepared when a computerised system is used.E) None of the above
F) C) and D)

Question 12

Which of the following statements is correct? In a manual accounting system:

Accepted Answer

A)   cash purchases are recorded in the cash receipts journal.
B)   cash purchases are recorded in the purchases journal.
C)   cash purchases are recorded in the general journal.
D)   cash purchases are recorded in the cash payments journal.E) All of the above
F) A) and B)

Question 13

Which of the following is not a physical means of internal control?

Accepted Answer

A)   Employment of security staff
B)   Employee identification cards
C)   Manager Authorisation
D)   Password protected access to buildingsE) All of the above
F) A) and B)

Question 14

Data input for each computerised accounting module is obtained from:

Accepted Answer

A)   tax documents.
B)   reporting documents.
C)   source documents.
D)   handwritten documents only.E) A) and C)
F) None of the above

Question 15

Unauthorised access to a business's computer files and/or confidential information would be performed by people known as:

Accepted Answer

A)   hackers.
B)   employees.
C)   viruses.
D)   fraudsters.E) A) and B)
F) B) and D)

Question 16

______________procedures must exist to ensure the accuracy of data input into a computerised accounting system.

Accepted Answer

A)   Automatic
B)   Administrative
C)   Control
D)   PhysicalE) None of the above
F) A) and B)

Question 17

Which of the following statements about control accounts is incorrect?

Accepted Answer

A)   they provide summarised data.
B)   they are included in the subsidiary ledger.
C)   they apply the normal rules of debit and credit.
D)   they are included in the trial balance.E) None of the above
F) A) and B)

Question 18

Which of the following are considered disadvantages of a computerised accounting system?
I. Inexperienced staff.
II. Slower processing.
III. Undetected viruses.
IV. Increase in processing errors.
V. Programs that are not suited to the business's needs.

Accepted Answer

A)   I, II, III and IV.
B)   II, III, IV, and V.
C)   I, III, and V.
D)   III, IV, and V.E) B) and D)
F) All of the above

Question 19

Which of the following is not a column heading in a purchases journal?

Accepted Answer

A)   Purchase date
B)   Supplier's name
C)   GST receivable
D)   Cash/BankE) A) and C)
F) A) and D)

Question 20

Which of the following would not normally use a subsidiary ledger and control account system?

Accepted Answer

A)   Plant and equipment
B)   Trade creditors
C)   Mortgage
D)   Accounts receivableE) A) and D)
F) A) and C)

Exam 7: Accounting for Systems

The limitations of internal control systems include:

Correct Answer
verified

______________procedures must exist to ensure the accuracy of data input into a computerised accounting system.

Correct Answer
verified

Details of amounts owed by individual debtors are found in the:

Correct Answer
verified

Which of the following are considered disadvantages of a computerised accounting system? I. Inexperienced staff. II. Slower processing. III. Undetected viruses. IV. Increase in processing errors. V. Programs that are not suited to the business's needs.

Correct Answer
verified

Which of the following statements is correct? In a manual accounting system:

Correct Answer
verified

In comparing computerised and manual accounting systems, which of the following statements is correct?

Correct Answer
verified

Cathy is both a debtor and a creditor of Palm Ltd. At the end of the period Cathy owes Palm Ltd $500 while Palm Ltd owes Cathy $2000. After offsetting the amounts, Palm Ltd's books show a balance of how much as still owing to or from Cathy?

Correct Answer
verified

Source documents used for the preparation of the cash payments journal include:

Correct Answer
verified

Correct Answer
verified

Which of the following is not a column heading in a purchases journal?

Correct Answer
verified

Which of the following is not a physical means of internal control?

Correct Answer
verified

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

Correct Answer
verified

Unauthorised access to a business's computer files and/or confidential information would be performed by people known as:

Correct Answer
verified

Data that have been processed in some prescribed manner to be more useful for decision making is called:

Correct Answer
verified

Which of the following statements about control accounts is incorrect?

Correct Answer
verified

Which of the following would not normally use a subsidiary ledger and control account system?

Correct Answer
verified

Which automatic procedure is an advantage of computerised accounting systems?

Correct Answer
verified

Hodges Ltd uses a subsidiary ledger and control account system for its accounts receivable. At the end of the accounting period a list of customers' accounts and balances owing is prepared from the subsidiary ledger. The purpose of this customer list is to:

Correct Answer
verified

The three phases in the development of an accounting system are: I. Systems analysis II. Systems plan III. Systems design IV. Systems implementation and review

Correct Answer
verified

Data input for each computerised accounting module is obtained from:

Correct Answer
verified

Exam 7: Accounting for Systems

The limitations of internal control systems include:

Correct AnswerverifiedShow Answer

______________procedures must exist to ensure the accuracy of data input into a computerised accounting system.

Correct AnswerverifiedShow Answer

Details of amounts owed by individual debtors are found in the:

Correct AnswerverifiedShow Answer

Which of the following are considered disadvantages of a computerised accounting system? I. Inexperienced staff. II. Slower processing. III. Undetected viruses. IV. Increase in processing errors. V. Programs that are not suited to the business's needs.

Correct AnswerverifiedShow Answer

Which of the following statements is correct? In a manual accounting system:

Correct AnswerverifiedShow Answer

In comparing computerised and manual accounting systems, which of the following statements is correct?

Correct AnswerverifiedShow Answer

Cathy is both a debtor and a creditor of Palm Ltd. At the end of the period Cathy owes Palm Ltd $500 while Palm Ltd owes Cathy $2000. After offsetting the amounts, Palm Ltd's books show a balance of how much as still owing to or from Cathy?

Correct AnswerverifiedShow Answer

Source documents used for the preparation of the cash payments journal include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a column heading in a purchases journal?

Correct AnswerverifiedShow Answer

Which of the following is not a physical means of internal control?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Unauthorised access to a business's computer files and/or confidential information would be performed by people known as:

Correct AnswerverifiedShow Answer

Data that have been processed in some prescribed manner to be more useful for decision making is called:

Correct AnswerverifiedShow Answer

Which of the following statements about control accounts is incorrect?

Correct AnswerverifiedShow Answer

Which of the following would not normally use a subsidiary ledger and control account system?

Correct AnswerverifiedShow Answer

Which automatic procedure is an advantage of computerised accounting systems?

Correct AnswerverifiedShow Answer

Hodges Ltd uses a subsidiary ledger and control account system for its accounts receivable. At the end of the accounting period a list of customers' accounts and balances owing is prepared from the subsidiary ledger. The purpose of this customer list is to:

Correct AnswerverifiedShow Answer

The three phases in the development of an accounting system are: I. Systems analysis II. Systems plan III. Systems design IV. Systems implementation and review

Correct AnswerverifiedShow Answer

Data input for each computerised accounting module is obtained from:

Correct AnswerverifiedShow Answer

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