Question

The information systems of most business organizations: 5 Multiple Choice Back Utilize databases, rather than ledger accounts O Are tailored to meet the organization's needs accounting Information and the resources available for operating the system. O Are designed by the CPA firm the performs the annuel financial audit Are similar in design to the journals, ledgers, and worksheets illustrated in this text.

Answer 1

Requirement 5:- The information system of most business orgainization:

Correct Answer:- Are tailored to meet the orgainization's needs for accounting information and the resources available for operating system.

The CPA firm that does the annual financial audit does not design these systems nor is it necessary that they be similar to the formats provided in the text.

Utilize data bases, rather than ledger accounts' may not be entirely true since in ERP systems the data is stored in databases and retrieved and formatted to look like ledgers while in other accounting packages ledgers may be used.

Requirement 6:- What is the December 31, year 1 Cash balance?

Correct Answer:- $49,000 Cash balance

Balance Sheet

Liabilities		Assets
Capital Stock	$254,000	Land	$234,000
Account Payable	$13,000	Building	$174,000
Retained Earnings	$154,000	Equipment	$114,000
Notes Payable	$184,000	Account Receivable	$34,000
		Cash (Balancing Figure)	$49,000
Total Liabilities	$605,000	Total Assets	$605,000

Total liabilities = Land + Building + Equipment + Account Receivable + Cash

$605,000 - (234,000 + 174,000 + 114,000 + 34,000) = Cash

Cash = $49,000

Thank you!!