1. A subsidiary ledger is a group of accounts that share a common characteristic.
A.True
B.False


2. A control account balance in the general ledger must equal the sum of the individual account balances in the related subsidiary ledger.
A.True
B.False


3. The sales journal is used to record all sales of merchandise.
A.True
B.False


4. The total of the Other Accounts column in the cash receipts journal is not posted.
A.True
B.False


5. Only transactions that cannot be entered in a special journal are recorded in the general journal.
A.True
B.False


6. The starting point in developing an accounting system is:
A.analysis.
B.design.
C.follow-up.
D.implementation.


7. Principles of an efficient and effective accounting information system include all of the following except:
A.cost effectiveness.
B.flexibility.
C.usefulness.
D.all of these options are principles.


8. Each of the following is a subsidiary ledger except the:
A.accounts receivable ledger.
B.accounts payable ledger.
C.customers' ledger.
D.general ledger.


9. Which one of the following accounts is a control account?
A.Accounts payable.
B.Cash.
C.Owner's capital.
D.Sales.


10. All of the following are advantages of using subsidiary ledgers except they:
A.show transactions that affect one customer or one creditor in a single account.
B.free the general ledger of excessive details.
C.eliminate errors in individual accounts.
D.make possible a division of labour in posting.


11. Closing entries are recorded in the:
A.cash receipts journal.
B.general journal.
C.purchases journal.
D.sales journal.


12. Cash sales of merchandise are recorded in the:
A.cash payments journal.
B.cash receipts journal.
C.general journal.
D.sales journal.


13. Which of the following statements about using the sales journal is not true?
A.Postings from the sales journal to the individual accounts receivable accounts in the subsidiary ledger are made daily.
B.. The reference column is used in posting.
C.Less time is required to journalize compared to a general journal.
D.The reference column is used in journalizing.


14. Postings from the sales journal to the general ledger are made:
A.daily.
B.monthly.
C.weekly.
D.yearly.


15. The individual amounts in the accounts receivable column of the cash receipts journal are posted to the subsidiary ledger:
A.daily.
B.monthly.
C.weekly.
D.yearly.


16. The purchase of equipment in exchange for a note payable would be recorded in the:
A.cash payments journal.
B.cash receipts journal.
C.general journal.
D.purchases journal.


17. The individual amounts in the purchases journal are posted to the accounts payable ledger:
A.daily.
B.weekly.
C.monthly.
D.yearly.


18. Cash purchases of merchandise are recorded in the:
A.cash receipts journal.
B.cash payments journal.
C.general journal.
D.purchases journal.


19. The four phases of the accounting system life cycle are:
A.analysis, tendering, acquisition, and installation.
B.analysis, needs assessment, development, and implementation.
C.analysis, design, implementation, and follow-up.
D.analysis, processing, acquisition, and follow-up.


20. An expanded purchases journal could contain any of the following additional columns except:
A.office supplies.
B.cash.
C.other accounts.
D.store supplies.



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