SUA STUDY GUIDE ANSWERS AND QUESTIONS SET
A+
✔✔There are seven steps to recording a transaction in the SUA, put them in the correct
order - ✔✔1.
Read and analyze the transaction.
Correct2.
Find the appropriate flowchart.
Correct3.
Locate and prepare the appropriate documents if any are necessary for this transaction.
Correct4.
Record the transaction to the appropriate journal if an entry is necessary for this
transaction.
Correct5.
Post individual items to subsidiary ledgers if necessary for the transaction.
Correct6.
File documents in the appropriate file tab in the envelope in accordance with the
flowchart description.
Correct7.
Proceed to the next transaction.
✔✔What does the check mark in the "Post Sub" reference column of any special journal
refer to? - ✔✔You have posted the transaction to the subsidiary ledger.
✔✔If you received a request from a customer who wanted to know how much they
owed, you would go to the: - ✔✔Accounts receivable subsidiary ledger
, ✔✔The general journal is used to - ✔✔record all accounting entries not recorded in
special journals
✔✔Flowcharts communicate the flow of documents and records through a company's
accounting system. - ✔✔true
✔✔A document prepared at the time of shipment indicating the description of the
merchandise, the quantity shipped and other relevant data. It is a written contract of the
receipt and shipment of goods between the seller and the carrier. This document is a: -
✔✔Bill of Lading
✔✔At Waren Sports Supply who is responsible for making the journal entry when an
uncollectible accounts receivable is identified? - ✔✔Ray Kramer
✔✔In the sales cycle, what document is used to initiate a credit sale? - ✔✔Customer
purchase order
✔✔An auditor is trying to determine if a sales transaction was recorded in the proper
period. The document he or she will be most interested in is: - ✔✔Bill of lading
✔✔Waren sells shares of another company's stock. The transaction will be recorded in
the following accounts - ✔✔Cash, Gain/Loss on Market Securities, Market Securities
✔✔It is okay to ignore the flowcharts on pages 18-21 and process the Sales and Cash
Receipts documents using any process that makes sense to me - ✔✔False
✔✔Identify three (3) internal controls (there are more than 3) that are described in the
Sales Cycle flowcharts on pages 18 and 19. - ✔✔Segregation of duties - Nancy Ford
does shipping and billing; Jim Adams does the accounting and Ray Kramer is in charge
of writing off any bad debts.
Ray Kramer approves credit purchase orders.
Jim Adams reviews Sales Invoices for accuracy.
Prenumbered sales invoices
Prenumbered bills of lading
Ray Kramer initials write-off entries
Associated documents stapled together when filed
✔✔Every journal entry appears in one (and only one) journal - ✔✔True
A+
✔✔There are seven steps to recording a transaction in the SUA, put them in the correct
order - ✔✔1.
Read and analyze the transaction.
Correct2.
Find the appropriate flowchart.
Correct3.
Locate and prepare the appropriate documents if any are necessary for this transaction.
Correct4.
Record the transaction to the appropriate journal if an entry is necessary for this
transaction.
Correct5.
Post individual items to subsidiary ledgers if necessary for the transaction.
Correct6.
File documents in the appropriate file tab in the envelope in accordance with the
flowchart description.
Correct7.
Proceed to the next transaction.
✔✔What does the check mark in the "Post Sub" reference column of any special journal
refer to? - ✔✔You have posted the transaction to the subsidiary ledger.
✔✔If you received a request from a customer who wanted to know how much they
owed, you would go to the: - ✔✔Accounts receivable subsidiary ledger
, ✔✔The general journal is used to - ✔✔record all accounting entries not recorded in
special journals
✔✔Flowcharts communicate the flow of documents and records through a company's
accounting system. - ✔✔true
✔✔A document prepared at the time of shipment indicating the description of the
merchandise, the quantity shipped and other relevant data. It is a written contract of the
receipt and shipment of goods between the seller and the carrier. This document is a: -
✔✔Bill of Lading
✔✔At Waren Sports Supply who is responsible for making the journal entry when an
uncollectible accounts receivable is identified? - ✔✔Ray Kramer
✔✔In the sales cycle, what document is used to initiate a credit sale? - ✔✔Customer
purchase order
✔✔An auditor is trying to determine if a sales transaction was recorded in the proper
period. The document he or she will be most interested in is: - ✔✔Bill of lading
✔✔Waren sells shares of another company's stock. The transaction will be recorded in
the following accounts - ✔✔Cash, Gain/Loss on Market Securities, Market Securities
✔✔It is okay to ignore the flowcharts on pages 18-21 and process the Sales and Cash
Receipts documents using any process that makes sense to me - ✔✔False
✔✔Identify three (3) internal controls (there are more than 3) that are described in the
Sales Cycle flowcharts on pages 18 and 19. - ✔✔Segregation of duties - Nancy Ford
does shipping and billing; Jim Adams does the accounting and Ray Kramer is in charge
of writing off any bad debts.
Ray Kramer approves credit purchase orders.
Jim Adams reviews Sales Invoices for accuracy.
Prenumbered sales invoices
Prenumbered bills of lading
Ray Kramer initials write-off entries
Associated documents stapled together when filed
✔✔Every journal entry appears in one (and only one) journal - ✔✔True
