Accounting Systems questions with actual answers.

Accounting Systems questions with
actual answers.

accounting system ANS - the methods and procedures for collecting, classifying, summarizing, and
reporting a business's financial and operating information



the accounting system consists of: ANS - internal controls and information processing methods



internal controls ANS - the policies and procedures that protect assets from misuse, ensure that
business information is accurate, and ensure that laws and regulations are being followed



processing method ANS - the means by which the accounting system collects, summarizes, and reports
accounting information



when a business has a large number of similar transactions ANS - subsidiary ledgers and special journals
are more practical



subsidiary ledger ANS - a large number of individual accounts with a common characteristic can be
grouped together in a separate ledger called this



general ledger ANS - the primary ledger, which contains all of the balance sheet and income statement
accounts



controlling account ANS - each subsidiary ledger is represented in the general ledger by a summarizing
account



two of the most common subsidiary accounts are: ANS - accounts receivable subsidiary ledger and
accounts payable subsidiary ledger



accounts receivable subsidiary ledger ANS - lists the individual customer accounts in alphabetical order