JENNY D.

DAGURO BS-ACCOUNTACY 2

Question: What are the two primary benefits of using special-

purpose journals?
Answer: (1) Using a special-purpose journal greatly reduces the work
involved in entering and posting transactions. (2) Instead of posting every
debit and credit for each transaction the use of special-purpose journals
allows the posting of column totals (representing many transactions)

1. Identify the principles of accounting systems design.

Answer: There are four general principles of accounting systems
design: (1) cost benefit principle which holds the benefit derived from
an accounting system and the information it generates must be equal
to or greater than the system’s cost. (2) control principle which
requires that an accounting system provide internal control features in
order to protect a firm’s assets and ensure that data are reliable. (3)
compatibility principle which holds that the design an accounting
system must be in harmony with the organizational and human factors
of the business. (4) flexibility principle which holds that an accounting
system must be flexible enough to allow the volume of transactions to
grow and organizational changes to be made.
2. Describe how general ledger software and spreadsheet
software are used in accounting.
Answer: General ledger software is a group of integrated programs
that an accountant uses to perform major functions such as accounting
for sales and accounts receivable, purchases and accounts payable
and payroll. Spreadsheet software is often used in addition to general
ledger software which include such program as Windows Excel and
Lotus 1-2-3.
3. Describe the used of microcomputer systems in small
businesses.
Answer: The computer system is the nerve center of the company
while Enterprise Resource Management systems use powerful
 computers linked together to provide communication and data transfer
around the world. The internet links microcomputers in small and large
companies, providing communications and supporting business
transactions.
4. Explain how accountants use the internet.
Answer: Accountants use internet to send or receive communications
over the network through electronic mail or email, to browse a vast
repository of information, to download files from the network to
individual computers and to share information and ideas.

5. Explain the objectives and uses of special-purpose journals.

Answer: Special-purpose journals offer a more efficient and
economical way to process similar repetitive transactions. A general
journal is still required even if special-purpose journals are used. It is
used to record transactions that do not fall into any of the special
categories. Using a special-purpose journal greatly reduces the work
involved in entering and posting transactions. Instead of posting every
debit and credit for each transaction the use of special-purpose
journals allows the posting of column totals (representing many
transactions)
6. Explain the purposes and relationships of controlling accounts
and subsidiary ledgers.
Answer: A controlling account (control account) is an account in the
general ledger that maintains the total balance of all related accounts
in a subsidiary ledger. While a subsidiary ledger is a ledger separate
from the general ledger that contains a group of related accounts. The
total of the balances in the subsidiary ledger accounts equals the
balance in the corresponding controlling accounts.
7. Construct and use a sales journal, purchases journal, cash
payments journal, and other special-purpose journals as
needed.
JENNY D. DAGURO BS-ACCOUNTACY 2

Answer: