Question 1. On November 18th, 20X2, Decker Company buys a New Holland Tractor from Murray Company. Decker Company considers getting a loan from the bank, but instead finances the equipment through Murray Company by signing a promissory note. The price of the equipment is $30,000. The terms of the note state that interest of 9% and principal will be paid in full on November 18th, 20X3. Who is the maker of the note?
Murray Company
Decker Company
the bank
New Holland Tractor Company
Question 2. Hancock Electric Company uses an accounting information system that allows the administrator to limit an employee's access within the system based on the employee's job requirements. For example, the accounts payable clerk may have access to enter invoices into the system but may not be able to print checks and reconcile the bank statement. By granting access to only the information that the employee must have to fulfill his duties, the administrator can facilitate segregation of duties. What element of an effective accounting information system does Hancock Electric Company's system possess?
flexibility
control
compatibility
a good cost/benefit relationship
Question 3. On November 18th, 20X2, Decker Company buys a New Holland Tractor from Murray Company. Decker Company considers getting a loan from the bank, but instead finances the equipment through Murray Company by signing a promissory note. The price of the equipment is $30,000. The terms of the note state that interest of 9% and principal will be paid in full on November 18th, 20X3. What is the principal amount of the note?
$2,700
$27,300
$32,700
$30,000
Question 4. On November 18th, 20X2, Decker Company buys a New Holland Tractor from Murray Company. Decker Company considers getting a loan from the bank, but instead finances the equipment through Murray Company by signing a promissory note. The price of the equipment is $30,000. The terms of the note state that interest of 9% and principal will be paid in full on November 18th, 20X3. What is the maturity value of the note?
$2,700
$27,300
$32,700
$30,000
Question 5. Spreadsheets are great tools for ________ data.
inputting
processing
analyzing
posting
Question 6. When credit sales are entered into a sales journal and posted to the general ledger, ________ updated.
cash balances are
the accounts receivable subsidiary ledger is
accounts payable are
expense accounts are
Question 7. Crime Prevention Company received payment from Bobby Rentfrow for his monthly alarm monitoring service. Instead of applying the payment to Bobby Rentfrow's account, the payment was erroneously applied to Matt Rentfrow's account. This error will cause ________.
accounts receivable to be overstated
income to be overstated
cash to be understated
the accounts receivable subsidiary ledger to be incorrect