SUA EXAM 1 with 100% Correct
3 ways a recievable can be eliminated - ANS-cash receipt, sales returns and
allowances, write off
Accounting - ANS-is the process of identifying, measuring, and communicating
economic information to permit informed judgments and decisions by users of the
information
Accounting Cycle - ANS-1. Obtain information about external transactions from source
documents
2. Analy e transactions.
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3. Record the transactions in a journal.
4. Post from the journal to the general ledger accounts.
5. Prepare an unadjusted trial balance.
6. Record adjusting entries and post to the general ledger accounts.
7. Prepare an adjusted trial balance.
8. Prepare financial statements.
9. Close the temporary accounts to retained earnings (at year-end only).
10. Prepare a post-closing trial balance (at year-end only).
bank deposit slip - ANS-iA document that accompanies the bill mailed to the customer
and can be returned to the seller with the cash payment is called
bill of lading - ANS-A document prepared at the time of shipment indicating the
description of the merchandise, the quantity shipped and other relevant data.
written contract of receipt and shipment between seller and carrier
Block Coding - ANS-Numbers are assigned in blocks; each block is reserved for a
particular kind of account
Bookkeeping - ANS-that part of accounting devoted to identifying and measuring the
economic information
Cash disbursements cycle - ANS-1. process cash disbursements
2. Record in Cash disbursements journal and subsidiary ledger
3. summari e cash disbusment and post to general ledger
z
Cash receipts cycle - ANS-1. recieve cash (cash receipts prelist)
, 2. Deposit Cash (bank deposit slip)
3. record in cash receipts journal and subsidiary ledger
4. summari e cash receipts journal and pot to general ledger
z
cash receipts prelist - ANS-a list prepare when cash is received
Closing entries - ANS-1. closing out inventory and COGS
2. Closing out all expenses
3. Closing out all revenues
4. Closing out the income summary into retained earnings
coding systems - ANS-1. sequential
2. Block coding
3. Hierarchical
4.mnemonic
Purchases Internal controls - ANS-1. Preparation of bank reconcilation
2. four key authori ations
z
3person responsible for receiving the goods or signing checks is not in charge of
accounting
4. independent checks on performance such as accountig for all receiving reports.
verifying price of goods with those from local store or prices lists
Purpose and example of Internal controls - ANS-•Safeguarding assets:
o (daily deposits of cash in a bank)
•Ensuring f/s reliability:
o (supervisory review of complex trx)
o What they see as an accrual is actually an accrual
o Supervisor checks that to make sure it is recorded appropriately
•Promoting operational efficiency:
o (maintaining a centrali ed purchasing department)
z
o Less efficient to have multiple purchasers in each department
o Approval process for department purchases
•Encouraging compliance with management's directives:
o (distributing a company's procedures manual)
Receiving Report - ANS--a document prepared at the time tangible goods are received.
-The report indicates the description and condition of the goods, the quantity received,
and the date received
sales invoice - ANS-a document prepared indicating the description and quantity of the
goods sold, the price including freight, insurance, ternms, other relevent data and the
total amount of sale
-indicates to customer the amount of sales and due date of payment
also used to record sales in accounting record
3 ways a recievable can be eliminated - ANS-cash receipt, sales returns and
allowances, write off
Accounting - ANS-is the process of identifying, measuring, and communicating
economic information to permit informed judgments and decisions by users of the
information
Accounting Cycle - ANS-1. Obtain information about external transactions from source
documents
2. Analy e transactions.
z
3. Record the transactions in a journal.
4. Post from the journal to the general ledger accounts.
5. Prepare an unadjusted trial balance.
6. Record adjusting entries and post to the general ledger accounts.
7. Prepare an adjusted trial balance.
8. Prepare financial statements.
9. Close the temporary accounts to retained earnings (at year-end only).
10. Prepare a post-closing trial balance (at year-end only).
bank deposit slip - ANS-iA document that accompanies the bill mailed to the customer
and can be returned to the seller with the cash payment is called
bill of lading - ANS-A document prepared at the time of shipment indicating the
description of the merchandise, the quantity shipped and other relevant data.
written contract of receipt and shipment between seller and carrier
Block Coding - ANS-Numbers are assigned in blocks; each block is reserved for a
particular kind of account
Bookkeeping - ANS-that part of accounting devoted to identifying and measuring the
economic information
Cash disbursements cycle - ANS-1. process cash disbursements
2. Record in Cash disbursements journal and subsidiary ledger
3. summari e cash disbusment and post to general ledger
z
Cash receipts cycle - ANS-1. recieve cash (cash receipts prelist)
, 2. Deposit Cash (bank deposit slip)
3. record in cash receipts journal and subsidiary ledger
4. summari e cash receipts journal and pot to general ledger
z
cash receipts prelist - ANS-a list prepare when cash is received
Closing entries - ANS-1. closing out inventory and COGS
2. Closing out all expenses
3. Closing out all revenues
4. Closing out the income summary into retained earnings
coding systems - ANS-1. sequential
2. Block coding
3. Hierarchical
4.mnemonic
Purchases Internal controls - ANS-1. Preparation of bank reconcilation
2. four key authori ations
z
3person responsible for receiving the goods or signing checks is not in charge of
accounting
4. independent checks on performance such as accountig for all receiving reports.
verifying price of goods with those from local store or prices lists
Purpose and example of Internal controls - ANS-•Safeguarding assets:
o (daily deposits of cash in a bank)
•Ensuring f/s reliability:
o (supervisory review of complex trx)
o What they see as an accrual is actually an accrual
o Supervisor checks that to make sure it is recorded appropriately
•Promoting operational efficiency:
o (maintaining a centrali ed purchasing department)
z
o Less efficient to have multiple purchasers in each department
o Approval process for department purchases
•Encouraging compliance with management's directives:
o (distributing a company's procedures manual)
Receiving Report - ANS--a document prepared at the time tangible goods are received.
-The report indicates the description and condition of the goods, the quantity received,
and the date received
sales invoice - ANS-a document prepared indicating the description and quantity of the
goods sold, the price including freight, insurance, ternms, other relevent data and the
total amount of sale
-indicates to customer the amount of sales and due date of payment
also used to record sales in accounting record
