Computers in processing accounting data

Assignment Help Financial Accounting

Reference no: EM133209390

Question 1.

Which of the following is NOT basic in the recording process?

a. Ensure the equality of the total debits and total credits in the entry.

b. Transfer the journal information into the appropriate account.

c. Enter the transaction information in the journal.

d. Analyze each transactions for the effect on the accounts.

Question 2.

Which of the following statements is CORRECT relative to the use of computers in processing accounting data?

a. It eliminates the double entry accounting system.

b. It may result in the elimination of document trails used

c. It eliminates the need for bookkeepers and accountants.

d. It eliminates the need for financial accounting

Question 3.

The general ledger, often called simply as the ledger, is ________ .

a. the book of original entry

b. a group of related accounts

c. the financial statements

d. the summarizing device

Question 4.

The statement that is NOT CORRECT about the general ledger is __________ .

a. It follows the sequence of the accounts in the chart of accounts.

b. postings are based on source documents.

c. the opening balances are entered before posting current transaction entries.

d. the T-account format or ledger running balance format may be adopted.

Question 5.

A subsidiary ledger is a _________ .

a. listing of accounts before closing entries

b. listing of accounts of a subsidiary

c. listing of the components of control account balances

d. back-up system to protect against record destruction

Question 6.

The process wherein transactions as recorded in the journal are transferred to the appropriate accounts in the general ledger and subsidiary ledgers, if appropriate, is called ____________ .

a. analyzing

b. ledgering

c. posting

d. journalizing

Question 7.

Which of the following statements is NOT CORRECT?

a. The post reference/folio column serves as cross reference between the journal and the ledger.

b. The post reference/folio column of the affected account in the ledger contains the journal and journal page number from where the posting was taken.

c. The cross referencing in the post reference/folio column is done even before posting.

d. The post reference/folio column of the affected account in the journals contains the account number of the ledger account from where the entry was posted.

Question 8.

Which of the following statements is CORRECT relative to posting with the use of special journals?

a. The general ledger posting has to be ahead of subsidiary ledger posting.

b. The subsidiary ledger posting has to be ahead of general ledger posting.

c. No subsidiary ledger posting is necessary.

d. The general ledger posting has to coincide with the subsidiary ledger posting.

Question 9.

The following statements pertain to a trial balance:

I. It is prepared at the end of every accounting period after all the transactions for the period have been recorded and posted to the general ledger.

II. It provides evidence that the total debits in the general ledger equal total credits.

III. It is a control device that helps eliminate accounting errors.

Which of the above statements is/are CORRECT?

a. I, II and III

b. I and II only

c. II and III only

d. I and III only

Question 10

Which of the following statements is CORRECT relative to trial balance?

a. The trial balance usually contains the account balances that should appear in the financial statements.

b. The trial balance proves that no errors have been made.

c. The trial balance is a summary taken directly from the general journal.

d. The trial balance provides information that is helpful when making adjusting entries.

Reference no: EM133209390

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