SUA Study Guide with Complete
Solutions
Documents Folder - ANSWER-location of Chart of Accounts in the SUA packet of
materials
SUA Instructions, Flowcharts and Ledgers - ANSWER-location of Employee Earnings
Subsidiary Ledger in the SUA packet of materials
SUA Journals - ANSWER-location of Cash Receipts Journal in the SUA packet of
materials
SUA Instructions, Flowcharts and Ledgers - ANSWER-location of General Ledger in the
SUA packet of materials
fraud. - ANSWER-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 __________________________.
Chart of Accounts - ANSWER-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?
Prepare documents, record in journals, post to ledgers, and prepare unadjusted trial
balance - ANSWER-Which of the following sequence of steps in the accounting cycle is
correct?
Ray Kramer, Jim Adams, Nancy Ford - ANSWER-What are the names of Waren's three
employees?
help aid in the understanding and visualization of the entire accounting process -
ANSWER-The overall objective of the Systems Understanding Aid and this class is to
No sales tax - ANSWER-How much sales tax applies to wholesale sales according to
Illinois state law?
Debit Accounts Payable $120,000
Credit Cash $120,000 - ANSWER-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
, Original entries are recorded in journals and journal account totals are posted to ledgers
periodically. - ANSWER-Which of the following statements are true?
True - ANSWER-According to the flowchart on page 31 of the Reference book, the
process of preparing the bank reconciliation is done by a person
Only information flow, not document flow - ANSWER-An arrow with a dotted line (- - - -
>) in a systems flowchart indicates which of the following?
Restrictively endorse check, enter on cash receipts prelist, make entry in cash receipts
journal and accounts receivable subsidiary ledger - ANSWER-When Waren Sports
Supply receives a check in the mail in payment of an account receivable, the following
actions are taken in this order:
Ray Kramer - ANSWER-A bank deposit is made each day cash is received. Who is
responsible for making the deposit?
Jim Adams - ANSWER-At Waren Sports Supply who is responsible for restrictively
endorsing a check upon receipt?
Jim Adams - ANSWER-In the sales cycle, who reviews the sales invoice and support
documents for accuracy?
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.
Correct5.
Post individual items to subsidiary ledgers if necessary for the transaction.
Correct6.
File documents in the appropriate file tab in the envelope in accordance with the
flowchart description.
Correct7.
Solutions
Documents Folder - ANSWER-location of Chart of Accounts in the SUA packet of
materials
SUA Instructions, Flowcharts and Ledgers - ANSWER-location of Employee Earnings
Subsidiary Ledger in the SUA packet of materials
SUA Journals - ANSWER-location of Cash Receipts Journal in the SUA packet of
materials
SUA Instructions, Flowcharts and Ledgers - ANSWER-location of General Ledger in the
SUA packet of materials
fraud. - ANSWER-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 __________________________.
Chart of Accounts - ANSWER-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?
Prepare documents, record in journals, post to ledgers, and prepare unadjusted trial
balance - ANSWER-Which of the following sequence of steps in the accounting cycle is
correct?
Ray Kramer, Jim Adams, Nancy Ford - ANSWER-What are the names of Waren's three
employees?
help aid in the understanding and visualization of the entire accounting process -
ANSWER-The overall objective of the Systems Understanding Aid and this class is to
No sales tax - ANSWER-How much sales tax applies to wholesale sales according to
Illinois state law?
Debit Accounts Payable $120,000
Credit Cash $120,000 - ANSWER-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
, Original entries are recorded in journals and journal account totals are posted to ledgers
periodically. - ANSWER-Which of the following statements are true?
True - ANSWER-According to the flowchart on page 31 of the Reference book, the
process of preparing the bank reconciliation is done by a person
Only information flow, not document flow - ANSWER-An arrow with a dotted line (- - - -
>) in a systems flowchart indicates which of the following?
Restrictively endorse check, enter on cash receipts prelist, make entry in cash receipts
journal and accounts receivable subsidiary ledger - ANSWER-When Waren Sports
Supply receives a check in the mail in payment of an account receivable, the following
actions are taken in this order:
Ray Kramer - ANSWER-A bank deposit is made each day cash is received. Who is
responsible for making the deposit?
Jim Adams - ANSWER-At Waren Sports Supply who is responsible for restrictively
endorsing a check upon receipt?
Jim Adams - ANSWER-In the sales cycle, who reviews the sales invoice and support
documents for accuracy?
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.
Correct5.
Post individual items to subsidiary ledgers if necessary for the transaction.
Correct6.
File documents in the appropriate file tab in the envelope in accordance with the
flowchart description.
Correct7.
