SUA PACKET (EXAM 1) QUESTIONS
AND ANSWERS
Accounting Process Steps: - Correct Answers -1. Transactions Occur
2. Prepare Documents
3. Record in Journals
4. Post to Ledgers
5. Prepare Unadjusted Trial Balances
6. Prepare and Post Adjusting Entries
7. Prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Three Most Common Transaction Cycles/Systems: - Correct Answers -1. Sales and
Cash Receipts
2. Purchases and Cash Disbursements
3. Payroll
Payroll Time Card - Correct Answers -Used to determine gross pay owed to employee
Customer Purchase Order (includes quantity ordered and agreed-upon price) - Correct
Answers -Used to determine quantities to ship to customer and amount to bill
Sales Invoice (includes total amount of sale) - Correct Answers -Provides information to
customer and for recording sales transactions
Monthly Bank Statement - Correct Answers -Provides information to determine whether
the company or bank has errors or omissions in recording cash receipts and
disbursements
Internally Prepared Documents: - Correct Answers -Purchase order to buy inventory;
Payroll time card
Externally Prepared Documents: - Correct Answers -Customer purchase order;
Vendor's invoice
Documents prepared BEFORE transaction occurs: - Correct Answers -1. Issue order to
buy goods or services (Purchase Order)
2. Receive order for a sale of goods or services (Customer Purchase Order)
, Documents prepared AT SAME TIME transaction occurs: - Correct Answers -1. Receive
goods or services (Receiving report)
2. Deliver goods (Bill of lading/Shipping document)
Documents prepared AFTER transaction occurs: - Correct Answers -1. Send bill for
goods/services sold (Sales invoice)
2. Receive bill for goods/services purchased (Vendor's invoice)
Special Journals - Correct Answers -Summarize similar, repetitive types of transactions
such as, sales, cash receipts, and purchases
General Journal - Correct Answers -Used for mostly non-repetitive transactions such as
error corrections, adjusting entries, and transactions not appropriate for any special
journals
Sales Journal Transactions: - Correct Answers -1. Sales or other revenue
2. Sales returns and allowances (may be recorded here or in separate journal)
Cash Receipts Journal Transactions: - Correct Answers -1. All cash receipts
Purchases Journal Transactions: - Correct Answers -1. All purchases of goods and
services except payroll
2. Purchases returns and allowances (may be recorded here or in separate journal)
Cash Disbursements Journal Transactions: - Correct Answers -1. All cash
disbursements made by check except payroll
Payroll Journal Transactions: - Correct Answers -1. All payroll disbursements (usually
made by check)
Special Journal TOTALS posted to - Correct Answers -corresponding GL Accounts
Special Journal TRANSACTION AMOUNTS posted to - Correct Answers -
corresponding customer Subsidiary Ledger Accounts
Adjusting Entries - 6 General Categories: - Correct Answers -1. Prepaid expenses
(adjust asset & expense accounts)
2. Accrued expenses (adjust liability & expense accounts)
3. Accrued revenue (adjust asset & revenue accounts)
4. Unearned Revenue (adjust liability & revenue accounts)
5. Estimated (expense) items (adjust expense & contra-asset OR liability accounts)
6. Inventory Adjustment (adjust asset & expense accounts)
Adjusting Entries posted to: - Correct Answers -End Period Worksheet and GL (after
financial statements prepared)
AND ANSWERS
Accounting Process Steps: - Correct Answers -1. Transactions Occur
2. Prepare Documents
3. Record in Journals
4. Post to Ledgers
5. Prepare Unadjusted Trial Balances
6. Prepare and Post Adjusting Entries
7. Prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Three Most Common Transaction Cycles/Systems: - Correct Answers -1. Sales and
Cash Receipts
2. Purchases and Cash Disbursements
3. Payroll
Payroll Time Card - Correct Answers -Used to determine gross pay owed to employee
Customer Purchase Order (includes quantity ordered and agreed-upon price) - Correct
Answers -Used to determine quantities to ship to customer and amount to bill
Sales Invoice (includes total amount of sale) - Correct Answers -Provides information to
customer and for recording sales transactions
Monthly Bank Statement - Correct Answers -Provides information to determine whether
the company or bank has errors or omissions in recording cash receipts and
disbursements
Internally Prepared Documents: - Correct Answers -Purchase order to buy inventory;
Payroll time card
Externally Prepared Documents: - Correct Answers -Customer purchase order;
Vendor's invoice
Documents prepared BEFORE transaction occurs: - Correct Answers -1. Issue order to
buy goods or services (Purchase Order)
2. Receive order for a sale of goods or services (Customer Purchase Order)
, Documents prepared AT SAME TIME transaction occurs: - Correct Answers -1. Receive
goods or services (Receiving report)
2. Deliver goods (Bill of lading/Shipping document)
Documents prepared AFTER transaction occurs: - Correct Answers -1. Send bill for
goods/services sold (Sales invoice)
2. Receive bill for goods/services purchased (Vendor's invoice)
Special Journals - Correct Answers -Summarize similar, repetitive types of transactions
such as, sales, cash receipts, and purchases
General Journal - Correct Answers -Used for mostly non-repetitive transactions such as
error corrections, adjusting entries, and transactions not appropriate for any special
journals
Sales Journal Transactions: - Correct Answers -1. Sales or other revenue
2. Sales returns and allowances (may be recorded here or in separate journal)
Cash Receipts Journal Transactions: - Correct Answers -1. All cash receipts
Purchases Journal Transactions: - Correct Answers -1. All purchases of goods and
services except payroll
2. Purchases returns and allowances (may be recorded here or in separate journal)
Cash Disbursements Journal Transactions: - Correct Answers -1. All cash
disbursements made by check except payroll
Payroll Journal Transactions: - Correct Answers -1. All payroll disbursements (usually
made by check)
Special Journal TOTALS posted to - Correct Answers -corresponding GL Accounts
Special Journal TRANSACTION AMOUNTS posted to - Correct Answers -
corresponding customer Subsidiary Ledger Accounts
Adjusting Entries - 6 General Categories: - Correct Answers -1. Prepaid expenses
(adjust asset & expense accounts)
2. Accrued expenses (adjust liability & expense accounts)
3. Accrued revenue (adjust asset & revenue accounts)
4. Unearned Revenue (adjust liability & revenue accounts)
5. Estimated (expense) items (adjust expense & contra-asset OR liability accounts)
6. Inventory Adjustment (adjust asset & expense accounts)
Adjusting Entries posted to: - Correct Answers -End Period Worksheet and GL (after
financial statements prepared)
