• Why would a company maintain separate accounts receivable ledgers for each customer, asopposed to maintaining a single accounts receivable ledgers for all customers? Discuss the prosand cons.What are the major advantages of the use of special journals?

Step 1: Pros: The use of separate accounts receivable ledger for each customer will help the company…

Answered: • Why would a company maintain separate…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter10: The Rea Approach To Database Modeling

Section: Chapter Questions

Problem 3MCQ

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Similar questions

When does an accounting information system becomes useful? What is the relevance of having subsidiary ledgers aside from control accounts?
Do you need to eliminate inter-company transactions when it comes to JV? explain briefly.
Which of the following events would be LEAST likely to be modeled in an REA diagram?a. customer inquiriesb. sales to a customerc. accounts payabled. cashe. all of these events would be modeled
What control system and subsidiary accounts should be included in Ermler & Trump’s manual accounting system? Why?
HOW DOES A BLOCKCHAIN PROVIDES DECENTRALIZD DECISON -MAKING IN FINANCIAL TRANSACTIONS?
According to R3 CORDA: A DISTRIBUTED LEDGER TECHNOLOGY FOR FINANCIALSERVICES What is a distributed ledger? What is a blockchain? How is a blockchain similar and different from a distributed ledger?
Which of the accounting controls ensure that a company's resources are used efficiently and economically? Select one: a. All of the available choices b. Making use of any payment discounts that are available c. Paying bills on time Od. Bidding for suppliers
What is the difference between a Manual and a Computerized accounting system? What is e-commerce and how would e-commerce improve the revenue/ collection cycle?
Why is it important to keep those business receipt/records?
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1) Why is it not necessary to model activities such as data entry of information about customers or suppliers, mailing invoices to customers, and recording invoices received from suppliers as events in an REA diagram? 2) How can REA diagrams help an auditor understand a client’s business processes? 3) How would accounts payable be reflected in an REA diagram? Why?
Match the definitions below with the correct term. A system that collects and processes [ Choose ] financial information to decision-makers. [Choose] transaction data and communicates Accounts payable (creditors') subsidiary ledger Cash receipts journal Accounts receivable (customers') subsidiary ledger Special journals A subsidiary ledger that collects transaction data of individual creditors. Control account A subsidiary ledger that collects Accounting information system transaction data of individual customers. Purchases journal A group of accounts with a common characteristic Subsidiary ledger Cash payments (cash disbursements) journal Sales journal A special journal that records all disbursements of cash. Cybercrime Manual accounting system A special journal that records all cash [Choose ] received. An account in the general ledger that summarizes subsidiary ledger data. [ Choose ] A crime that involves the Internet, a [ Choose ] computer system, or computer technology. A system…

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• Why would a company maintain separate accounts receivable ledgers for each customer, as opposed to maintaining a single accounts receivable ledgers for all customers? Discuss the pros and cons. What are the major advantages of the use of special journals?