SYSTEMS UNDERSTANDING AID
INSTRUCTIONS EXAM QUESTIONS
WITH COMPLETE ANSWERS
Mailed/Given to Outsiders - ANSWER-documents that are either mailed or given to
outsiders. ex: vendor copies of purchase orders, customer copies of sales invoices,
copies of bills of lading given to shippers, deposit slips and endorsed checks
deposited into the bank
shipping/banking - ANSWER-shipping or bankings documents that are completed
and ready for permanent filing. ex: shipping copies of sales invoices, loan
documents, completed bank reconciliations, bank statements, cash receipts prelists,
and validated deposit receipts
accounting - ANSWER-documents in the accounting department that are completed
and ready for permanent filing. ex: accounting copies of sales invoices and credit
memos, paid vendors' invoices and all attached documents, and completed time
record reports
journals/ledgers books - ANSWER-journals book and ledgers book
Warren Sports Supply type of business - ANSWER-distributor of sporting goods to
colleges and universities in the Midwest. organized as a commercial corporation and
is operated by a salaried manager and two hourly employees
main revenue source - ANSWER-distributorship
Ray Kramer - ANSWER-Salaried Manager
Makes cash deposits, does bank reconciliations, signs checks, and performs other
approvals (time record reports, purchase orders, credit sales, etc.)
Jim Adams - ANSWER-Hourly Employee
Receives and prelists cash, prepares credit memos, keeps payroll records, prepares
checks, and prepares all journals and subsidiary ledgers
Nancy Ford - ANSWER-hourly employee
prepares purchase orders and sales invoices, ships and receives goods, prepares
shipping and receiving documents, and verifies cash receipts
customers credit terms - ANSWER-2/10, Net 30
vendors credit terms - ANSWER-Velocity Sporting Goods -- 2/10 Net 30
Chicago Office Supply -- Due on receipt of invoice (if cash is available warren sports
normally pays within 5 days but not on the same day as receipt of invoice
Gillett Consulting -- Net 30
INSTRUCTIONS EXAM QUESTIONS
WITH COMPLETE ANSWERS
Mailed/Given to Outsiders - ANSWER-documents that are either mailed or given to
outsiders. ex: vendor copies of purchase orders, customer copies of sales invoices,
copies of bills of lading given to shippers, deposit slips and endorsed checks
deposited into the bank
shipping/banking - ANSWER-shipping or bankings documents that are completed
and ready for permanent filing. ex: shipping copies of sales invoices, loan
documents, completed bank reconciliations, bank statements, cash receipts prelists,
and validated deposit receipts
accounting - ANSWER-documents in the accounting department that are completed
and ready for permanent filing. ex: accounting copies of sales invoices and credit
memos, paid vendors' invoices and all attached documents, and completed time
record reports
journals/ledgers books - ANSWER-journals book and ledgers book
Warren Sports Supply type of business - ANSWER-distributor of sporting goods to
colleges and universities in the Midwest. organized as a commercial corporation and
is operated by a salaried manager and two hourly employees
main revenue source - ANSWER-distributorship
Ray Kramer - ANSWER-Salaried Manager
Makes cash deposits, does bank reconciliations, signs checks, and performs other
approvals (time record reports, purchase orders, credit sales, etc.)
Jim Adams - ANSWER-Hourly Employee
Receives and prelists cash, prepares credit memos, keeps payroll records, prepares
checks, and prepares all journals and subsidiary ledgers
Nancy Ford - ANSWER-hourly employee
prepares purchase orders and sales invoices, ships and receives goods, prepares
shipping and receiving documents, and verifies cash receipts
customers credit terms - ANSWER-2/10, Net 30
vendors credit terms - ANSWER-Velocity Sporting Goods -- 2/10 Net 30
Chicago Office Supply -- Due on receipt of invoice (if cash is available warren sports
normally pays within 5 days but not on the same day as receipt of invoice
Gillett Consulting -- Net 30
