ch03 - CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM MULTIPLE...

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Unformatted text preview: CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM MULTIPLE CHOICE —Conceptual Answer No. Description d 1. Purpose of an accounting system. d 2. Criteria for recording events. d 3. Identification of a recordable event. c 4. Identification of internal events. d 5. Book of original entry. a 6. Transaction analysis. d *7. Cash basis revenue. c *8. Convert cash receipts to service revenue. c *9. Convert cash paid for operating expenses. d 10. Purpose of trial balance. d 11. Limitations of trial balance. d 12. Purpose of adjusting entries. c 13. Matching principle. a 14. Prepaid items. d 15. Accrued items. c 16. Definition of unearned revenue. d 17. Definition of accrued expense. c 18. Adjusting entry for accrued expense. d 19. Factors to consider in estimating depreciation. d 20. Adjusting entries. d 21. Effect of adjusting entries. b 22. Prepaid expense and the matching principle. c 23. Accrued revenue and the matching principle. b 24. Unearned revenue and the matching principle. d 25. Identification of a real account. b 26. Identification of a temporary account. c 27. Effect of understanding ending inventory. c *28. Purpose of reversing entries. d *29. Identification of reversing entries. d *30. Identification of reversing entries. Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE —Computational Answer No. Description a 31. Determine adjusting entry. d 32. Determine adjusting entry. d 33. Determine adjusting entry. c 34. Adjusting entry for bad debts. b 35. Adjusting entry for bad debts. b 36. Unearned rent adjustment. c *37. Calculate commission expense for the year. b *38. Calculate cash received for interest. b *39. Calculate cash paid for salaries. d *40. Calculate cash paid for insurance. c *41. Calculate insurance expense. c *42. Calculate interest revenue. c *43. Calculate salary expense. c 44. Adjusting entry for interest receivable. c *45. Reversing entries. c 46. Subsequent period entry for interest. d *47. Use of reversing entry. c *48. Calculate total purchases. b *49. Calculate cost of goods sold. MULTIPLE CHOICE —CPA Adapted Answer No. Description c 50. Determine accrued interest payable. b 51. Determine balance of unearned revenues. a 52. Calculate subscriptions revenue. c 53. Determine interest receivable. b 54. Calculate balance of accrued payable. b 55. Calculate accrued salaries. a 56. Calculate royalty revenue. d 57. Calculate deferred revenue. b *58. Difference between cash basis and accrual method. c *59. Determine cash basis revenue. b *60. Determine accrual basis revenue. a *61. Calculate cost of goods sold. *This topic is dealt with in an Appendix to the chapter. 3 - 2 The Accounting Information System EXERCISES Item Description E3-62 Definitions....
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This note was uploaded on 05/01/2011 for the course ACCT 3341 taught by Professor Dr.ramaswamy during the Spring '09 term at University of St. Thomas-Texas.

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ch03 - CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM MULTIPLE...

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