1 The Accounts Payable Subsidiary Ledger a Lists individual

1. The Accounts Payable Subsidiary Ledger: a. Lists individual vendor accounts b. In total will equal the Accounts Payable balance (the Control Account) Contains information for purchases from each vendor on account d. Contains information for payments to vendors on account e. All of the above are correct. f. None of the above are correct. 2. How are transactions recorded in the Revenue Journal? a. Cash -Dr;, Accounts Receivable- C b. Accounts Receivable- Dr.; Revenue Cr c. Accounts Receivable- -Dr., Other-Dr or Cr d. Revenue Dr; Cash-C e. None of the above-the correct answer is: 3. The asset turnover ratio: a. is sometimes called the \'ratio of sales to assets. b. measures how effectively a business is using its assets to generate sales. c. indicates an effective use of assets if the ratio is high. d. indicates a favorable trend if it increases from one year to the next. All of the above are correct. f. None of the above are correct 4. Generally, the most efficient and effective sign of managing inventory is: (y a high inventory turnover and low # of days sales in inventory b, a low inventory turnover and high # of days sales in inventory C, a low inventory turnover and low # days sales in inventory d, a high inventory turnover and high # days sales in inventory e. None of the above. 5. Important internal control procedures include a. competent personnel, rotating duties and mandatory vacations. b. Separating responsibilities for related operations. A c. Separating operations, custody of assets and accounting d. Proofs and security measures e. All of the above. f. None of the above

Solution

1-e- all are corrrect since all features stated in points a -d are present in accounts payable subsidiary ledger account.

2) b

3)e- ie all the factors of assets turnover ratio.

4_)a

5)e

11_a

12)c

13)a

14)c ie 6000 ie historical cost less accumulated depreciation(book value doesnot consider the market vales effect)