ACTG223 EXAM 2 ACTUAL QUESTIONS AND ACCURATE
ANSWERS
Common features of entry-level software packages include - CORRECT
ANSWER✅✅✅ability to track all transactions
Millie is considering ordering a new accounting system for her business. The system is more
expensive than her current system, but it seems to include a lot of features that would greatly
benefit the company. She decides that these features are worth the extra money. This is an
example of - CORRECT ANSWER✅✅✅cost effectiveness
Jace's company has 17 employees who work full time. The company has a number of very
dedicated clients, and last year they generated $2 million in revenue. What type of software
should Jace use? - CORRECT ANSWER✅✅✅an entry level program
Portia works at a large company that employs about 650 people. Last year they generated $800
million in sales revenue. Recently the company has been looking for a new accounting system.
What type should they buy? - CORRECT ANSWER✅✅✅an enterprise resource planning
system
Tina has recently purchased a new accounting system for her company. The feature Tina likes
most is the system's ability to decrease the chance for fraud by tracking all transactions. Which
feature is this an example of? - CORRECT ANSWER✅✅✅audit trail
Which of the following is an addition to and an extension of the general ledger - CORRECT
ANSWER✅✅✅a subsidiary ledger
Which of the following is an advantage of a subsidiary ledger? - CORRECT
ANSWER✅✅✅They make possible a division of labor.
Which of the following is true of the relationship between the general ledger for accounts
payable and the subsidiary ledger? - CORRECT ANSWER✅✅✅balance for Accounts
Payable = sum of subsidiary balances of Creditors
, How often do companies post to the control accounts in the general ledger? - CORRECT
ANSWER✅✅✅monthly
Which of the following general ledger accounts is associated with customers? - CORRECT
ANSWER✅✅✅accounts receivable
Which of the following is a journal that most merchandising enterprises do not use? - CORRECT
ANSWER✅✅✅Equipment journal
When the totals of the sales journal are posted at the end of the month, there will be credits to -
CORRECT ANSWER✅✅✅Sales Revenue and Inventory and debits to Accounts Receivable
and Cost of Goods Sold
The entries in the sales journal must be posted daily to the - CORRECT
ANSWER✅✅✅Accounts Receivable subsidiary ledger
A cash receipts journal will be used for - CORRECT ANSWER✅✅✅cash sales and sales
discounts but not cost of goods sold.
Which of the following transactions would be recorded in the cash receipts journal? - CORRECT
ANSWER✅✅✅Cash is received by signing a note for $3,000
The Other Accounts column of a columnar journal is sometimes referred to as the - CORRECT
ANSWER✅✅✅Sundry Accounts column
In which columns of the cash receipts journal are debits entered? - CORRECT
ANSWER✅✅✅Cash, Sales Discounts, and Cost of Goods Sold
Kaitlyn's Cosmetics purchased a few items on account from a local store. The company plans to
pay off the account at the end of the month. This is an example of a transaction that will be
recorded in Kaitlyn's ________ journal - CORRECT ANSWER✅✅✅purchases journal
ANSWERS
Common features of entry-level software packages include - CORRECT
ANSWER✅✅✅ability to track all transactions
Millie is considering ordering a new accounting system for her business. The system is more
expensive than her current system, but it seems to include a lot of features that would greatly
benefit the company. She decides that these features are worth the extra money. This is an
example of - CORRECT ANSWER✅✅✅cost effectiveness
Jace's company has 17 employees who work full time. The company has a number of very
dedicated clients, and last year they generated $2 million in revenue. What type of software
should Jace use? - CORRECT ANSWER✅✅✅an entry level program
Portia works at a large company that employs about 650 people. Last year they generated $800
million in sales revenue. Recently the company has been looking for a new accounting system.
What type should they buy? - CORRECT ANSWER✅✅✅an enterprise resource planning
system
Tina has recently purchased a new accounting system for her company. The feature Tina likes
most is the system's ability to decrease the chance for fraud by tracking all transactions. Which
feature is this an example of? - CORRECT ANSWER✅✅✅audit trail
Which of the following is an addition to and an extension of the general ledger - CORRECT
ANSWER✅✅✅a subsidiary ledger
Which of the following is an advantage of a subsidiary ledger? - CORRECT
ANSWER✅✅✅They make possible a division of labor.
Which of the following is true of the relationship between the general ledger for accounts
payable and the subsidiary ledger? - CORRECT ANSWER✅✅✅balance for Accounts
Payable = sum of subsidiary balances of Creditors
, How often do companies post to the control accounts in the general ledger? - CORRECT
ANSWER✅✅✅monthly
Which of the following general ledger accounts is associated with customers? - CORRECT
ANSWER✅✅✅accounts receivable
Which of the following is a journal that most merchandising enterprises do not use? - CORRECT
ANSWER✅✅✅Equipment journal
When the totals of the sales journal are posted at the end of the month, there will be credits to -
CORRECT ANSWER✅✅✅Sales Revenue and Inventory and debits to Accounts Receivable
and Cost of Goods Sold
The entries in the sales journal must be posted daily to the - CORRECT
ANSWER✅✅✅Accounts Receivable subsidiary ledger
A cash receipts journal will be used for - CORRECT ANSWER✅✅✅cash sales and sales
discounts but not cost of goods sold.
Which of the following transactions would be recorded in the cash receipts journal? - CORRECT
ANSWER✅✅✅Cash is received by signing a note for $3,000
The Other Accounts column of a columnar journal is sometimes referred to as the - CORRECT
ANSWER✅✅✅Sundry Accounts column
In which columns of the cash receipts journal are debits entered? - CORRECT
ANSWER✅✅✅Cash, Sales Discounts, and Cost of Goods Sold
Kaitlyn's Cosmetics purchased a few items on account from a local store. The company plans to
pay off the account at the end of the month. This is an example of a transaction that will be
recorded in Kaitlyn's ________ journal - CORRECT ANSWER✅✅✅purchases journal
