SUA 2027 MAIN ANSWERS AND QUESTIONS SET A+
✔✔ location of Chart of Accounts in the SUA packet of materials - ✔✔Documents
Folder
✔✔location of Employee Earnings Subsidiary Ledger in the SUA packet of materials -
✔✔SUA Instructions, Flowcharts and Ledgers
✔✔location of Cash Receipts Journal in the SUA packet of materials - ✔✔SUA Journals
✔✔location of General Ledger in the SUA packet of materials - ✔✔SUA Instructions,
Flowcharts and Ledgers
✔✔The reason for not permitting a person who has temporary or permanent custody of
an asset to account for that asset is to protect the company against
__________________________. - ✔✔fraud.
✔✔A client's accounting records are unfamiliar to a new auditor. Where would the
auditor go to learn the names and numbers of the accounts being debited and credited
in the client's transactions? - ✔✔Chart of Accounts
✔✔Which of the following sequence of steps in the accounting cycle is correct? -
✔✔Prepare documents, record in journals, post to ledgers, and prepare unadjusted trial
balance
✔✔What are the names of Waren's three employees? - ✔✔Ray Kramer, Jim Adams,
Nancy Ford
✔✔The overall objective of the Systems Understanding Aid and this class is to - ✔✔help
aid in the understanding and visualization of the entire accounting process
✔✔How much sales tax applies to wholesale sales according to Illinois state law? -
✔✔No sales tax
, ✔✔On January 15, Waren Sports Supply purchased on account $120,000 in from their
vendor Velocity Sporting Goods. On February 10 they paid the vendor in full for this
purchase.
The correct journal entry is - ✔✔Debit Accounts Payable $120,000
Credit Cash $120,000
✔✔Which of the following statements are true? - ✔✔Original entries are recorded in
journals and journal account totals are posted to ledgers periodically.
✔✔According to the flowchart on page 31 of the Reference book, the process of
preparing the bank reconciliation is done by a person - ✔✔True
✔✔An arrow with a dotted line (- - - - >) in a systems flowchart indicates which of the
following? - ✔✔Only information flow, not document flow
✔✔When Waren Sports Supply receives a check in the mail in payment of an account
receivable, the following actions are taken in this order: - ✔✔Restrictively endorse
check, enter on cash receipts prelist, make entry in cash receipts journal and accounts
receivable subsidiary ledger
✔✔A bank deposit is made each day cash is received. Who is responsible for making
the deposit? - ✔✔Ray Kramer
✔✔At Waren Sports Supply who is responsible for restrictively endorsing a check upon
receipt? - ✔✔Jim Adams
✔✔In the sales cycle, who reviews the sales invoice and support documents for
accuracy? - ✔✔Jim Adams
✔✔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.
✔✔ location of Chart of Accounts in the SUA packet of materials - ✔✔Documents
Folder
✔✔location of Employee Earnings Subsidiary Ledger in the SUA packet of materials -
✔✔SUA Instructions, Flowcharts and Ledgers
✔✔location of Cash Receipts Journal in the SUA packet of materials - ✔✔SUA Journals
✔✔location of General Ledger in the SUA packet of materials - ✔✔SUA Instructions,
Flowcharts and Ledgers
✔✔The reason for not permitting a person who has temporary or permanent custody of
an asset to account for that asset is to protect the company against
__________________________. - ✔✔fraud.
✔✔A client's accounting records are unfamiliar to a new auditor. Where would the
auditor go to learn the names and numbers of the accounts being debited and credited
in the client's transactions? - ✔✔Chart of Accounts
✔✔Which of the following sequence of steps in the accounting cycle is correct? -
✔✔Prepare documents, record in journals, post to ledgers, and prepare unadjusted trial
balance
✔✔What are the names of Waren's three employees? - ✔✔Ray Kramer, Jim Adams,
Nancy Ford
✔✔The overall objective of the Systems Understanding Aid and this class is to - ✔✔help
aid in the understanding and visualization of the entire accounting process
✔✔How much sales tax applies to wholesale sales according to Illinois state law? -
✔✔No sales tax
, ✔✔On January 15, Waren Sports Supply purchased on account $120,000 in from their
vendor Velocity Sporting Goods. On February 10 they paid the vendor in full for this
purchase.
The correct journal entry is - ✔✔Debit Accounts Payable $120,000
Credit Cash $120,000
✔✔Which of the following statements are true? - ✔✔Original entries are recorded in
journals and journal account totals are posted to ledgers periodically.
✔✔According to the flowchart on page 31 of the Reference book, the process of
preparing the bank reconciliation is done by a person - ✔✔True
✔✔An arrow with a dotted line (- - - - >) in a systems flowchart indicates which of the
following? - ✔✔Only information flow, not document flow
✔✔When Waren Sports Supply receives a check in the mail in payment of an account
receivable, the following actions are taken in this order: - ✔✔Restrictively endorse
check, enter on cash receipts prelist, make entry in cash receipts journal and accounts
receivable subsidiary ledger
✔✔A bank deposit is made each day cash is received. Who is responsible for making
the deposit? - ✔✔Ray Kramer
✔✔At Waren Sports Supply who is responsible for restrictively endorsing a check upon
receipt? - ✔✔Jim Adams
✔✔In the sales cycle, who reviews the sales invoice and support documents for
accuracy? - ✔✔Jim Adams
✔✔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.
