SUA ACCT 433 EXAM QUESTIONS
AND ANSWERS
What does the check mark in the "Post Sub" reference column of any special journal
refer to? - ANSWER-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: - ANSWER-Accounts receivable subsidiary ledger
The general journal is used to - ANSWER-record all accounting entries not recorded
in special journals
Flowcharts communicate the flow of documents and records through a company's
accounting system. - ANSWER-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: - ANSWER-Bill of Lading
At Waren Sports Supply who is responsible for making the journal entry when an
uncollectible accounts receivable is identified? - ANSWER-Ray Kramer
In the sales cycle, what document is used to initiate a credit sale? - ANSWER-
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: - ANSWER-Bill of
lading
Waren sells shares of another company's stock. The transaction will be recorded in
the following accounts - ANSWER-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 - ANSWER-False
Identify three (3) internal controls (there are more than 3) that are described in the
Sales Cycle flowcharts on pages 18 and 19. - ANSWER-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 - ANSWER-True
The purchases journal is used to record: - ANSWER-All purchases of goods and
services on account
In the cash disbursements cycle, the vendor invoice is marked paid when a check is
issued in order to: - ANSWER-Avoid duplicate payment of the invoice.
What are the names of the three documents matched before a check is issued to a
vendor for payment on account? - ANSWER-Receiving report, approved purchase
order, vendor invoice.
Which of the following statements are true? - ANSWER-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 - ANSWER-True
An arrow with a dotted line (- - - - >) in a systems flowchart indicates which of the
following? - ANSWER-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: - ANSWER-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? - ANSWER-Ray Kramer
At Waren Sports Supply who is responsible for restrictively endorsing a check upon
receipt? - ANSWER-Jim Adams
In the sales cycle, who reviews the sales invoice and support documents for
accuracy? - ANSWER-Jim Adams
If the accountant was asked by management to determine the cost of inventory
purchases during the year from a particular vendor, he would most likely examine
which of the following to arrive at the answer - ANSWER-Accounts payable
subsidiary ledger
What is the normal sequence of recording a transaction when inventory is acquired?
- ANSWER-Purchase order, purchases journal, general ledger
AND ANSWERS
What does the check mark in the "Post Sub" reference column of any special journal
refer to? - ANSWER-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: - ANSWER-Accounts receivable subsidiary ledger
The general journal is used to - ANSWER-record all accounting entries not recorded
in special journals
Flowcharts communicate the flow of documents and records through a company's
accounting system. - ANSWER-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: - ANSWER-Bill of Lading
At Waren Sports Supply who is responsible for making the journal entry when an
uncollectible accounts receivable is identified? - ANSWER-Ray Kramer
In the sales cycle, what document is used to initiate a credit sale? - ANSWER-
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: - ANSWER-Bill of
lading
Waren sells shares of another company's stock. The transaction will be recorded in
the following accounts - ANSWER-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 - ANSWER-False
Identify three (3) internal controls (there are more than 3) that are described in the
Sales Cycle flowcharts on pages 18 and 19. - ANSWER-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 - ANSWER-True
The purchases journal is used to record: - ANSWER-All purchases of goods and
services on account
In the cash disbursements cycle, the vendor invoice is marked paid when a check is
issued in order to: - ANSWER-Avoid duplicate payment of the invoice.
What are the names of the three documents matched before a check is issued to a
vendor for payment on account? - ANSWER-Receiving report, approved purchase
order, vendor invoice.
Which of the following statements are true? - ANSWER-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 - ANSWER-True
An arrow with a dotted line (- - - - >) in a systems flowchart indicates which of the
following? - ANSWER-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: - ANSWER-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? - ANSWER-Ray Kramer
At Waren Sports Supply who is responsible for restrictively endorsing a check upon
receipt? - ANSWER-Jim Adams
In the sales cycle, who reviews the sales invoice and support documents for
accuracy? - ANSWER-Jim Adams
If the accountant was asked by management to determine the cost of inventory
purchases during the year from a particular vendor, he would most likely examine
which of the following to arrive at the answer - ANSWER-Accounts payable
subsidiary ledger
What is the normal sequence of recording a transaction when inventory is acquired?
- ANSWER-Purchase order, purchases journal, general ledger
