|
1. |
a | |
| 2. |
b | |
| 3. |
d | |
| 4. |
c | |
| 5. |
a | |
| 6. |
d | Because
all the correct accounts and amounts are entered, the account balances are correct.
The entries were simply recorded in a journal that is not supposed to be used
for the original
entry. This will result in the some entry type being “scattered”
between two journals, but that
is all. |
|
7. |
c | |
| 8. |
d | If
a transaction involves any payment of cash, the entire transaction is recorded
in the cash
payments journal. |
|
9. |
d | Because
“a” is a common beginner’s mistake, “b” would not be
correct for cash purchases,
and “c” would not be correct for cash
sales. |
| 10. |
c | |
| 11. |
c | Recording
a sale at the wrong amount will not cause the books to be out of balance in any
way, but it will usually be noticed by the customer when the bill is received. |
| 12. |
b | Because
the total debit posted to the controlling account will be $450 greater than the
total of
the accounts in the subsidiary ledger. In this situation, we cannot
rely on a customer to notify
us when the statement shows an amount that is
too low. |
| 13. |
b | In
a manual system, transaction data used for journal entries are recorded directly
into the
special journals. In computerized systems, transaction data are entered
into data entry
screens instead of special journals. In both systems, special
journals are used as transaction
type summary reports. |
| 14. |
d | |
| 15. |
a | The
only journal that both systems enter data directly into is the general journal.
Whenever
a general journal is used, knowledge of debits and credits is needed
for that journal.
Computerized systems use data entry screens (or scanners)
for most transactions, and these
screens do not require knowledge of debits
and credits. |
| 16. |
b | The
account is credited for the full amount even though less cash is received. |
| 17. |
c | |
| 18. |
d | However,
if (c) is not adequately maintained, losses from theft and fraud could be extremely
expensive. |
| | | |
