Question 1

When a company uses special journals, the general journal is used to record selected transactions and events including:

Accepted Answer

A)  Credit purchases.
B)  Closing entries.
C)  Sales on credit.
D)  Credit sales.
E)  Cash payments.F) A) and E)
G) B) and E)

Question 2

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

Accepted Answer

A) True 
 B)False

Question 3

Subsidiary ledgers do all of the following except:

Accepted Answer

A)  Help with division of labor (recordkeeping tasks) .
B)  Aid in error identification for individual accounts.
C)  Eliminate the need for individual postings to the customer or supplier accounts.
D)  Remove excessive detail from the general ledger.
E)  Provide up-to-date information on customer or other specific account balances.F) B) and E)
G) C) and D)

Question 4

Which of the following journals would a company use to record a merchandise return?

Accepted Answer

A)  General journal.
B)  Purchases journal.
C)  Cash disbursements journal.
D)  Cash receipts journal.
E)  Sales journal.F) None of the above
G) A) and E)

Question 5

A subsidiary ledger:

Accepted Answer

A)  Is a listing of all of the accounts of a business.
B)  Is also called a general ledger.
C)  Is a listing of individual accounts and amounts with a common characteristic.
D)  Is also called a special journal.
E)  Includes transactions not covered by special journals.F) None of the above
G) A) and C)

Question 6

Discuss how technology based information systems affect accounting.

Accepted Answer

Technology based information systems have increased the speed, accuracy and efficiency of performing accounting tasks. Moreover, information for business decision making is provided in a more timely fashion than with manual systems. Technology based systems can also help account for complex business structures and transactions. Enterprise resource planning software can further unify complex accounting systems and support the management decision making process.

Question 7

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Accepted Answer

A)  Cash disbursements journal.
B)  Purchases journal.
C)  Cash receipts journal.
D)  Sales journal.
E)  General journal.F) All of the above
G) None of the above

Question 8

A company would use which of the following journals to record cash payments?

Accepted Answer

A)  General journal.
B)  Sales journal.
C)  Cash disbursements journal.
D)  Cash receipts journal.
E)  Purchases journal.F) A) and D)
G) A) and C)

Question 9

The flexibility principle of accounting information systems prescribes that the:

Accepted Answer

A)  System conforms to a company's activities, personnel, and structure.
B)  System aid managers in controlling and monitoring business activities.
C)  System report useful, understandable, timely, and pertinent information for effective decision making.
D)  Benefits from an activity in the system outweigh the costs of the activity.
E)  System be able to adapt to changes in the company, business environment, and needs of decision makers.F) D) and E)
G) C) and D)

Question 10

The purchases journal is typically used to record only purchases of inventory.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Accepted Answer

A)  Flexibility principle.
B)  Relevance principle.
C)  Compatibility principle.
D)  Cost-Benefit principle.
E)  Control principle.F) B) and E)
G) C) and D)

Question 12

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system, th...

Question 13

Assume that a company uses special journals for sales, purchases, cash receipts, and cash disbursements. A sales return for credit on account would be recorded in the:

Accepted Answer

A)  Direct posting journal.
B)  Cash disbursements journal.
C)  Cash receipts journal.
D)  General journal.
E)  Sales journal.F) A) and B)
G) A) and E)

Question 14

Which of the following statements is not true regarding internal control procedures?

Accepted Answer

A)  Internal control procedures include methods to achieve compliance with laws and regulations.
B)  Internal control procedures direct operations toward common goals.
C)  Internal control procedures are designed to safeguard company assets.
D)  Internal control procedures are not affected by the cost-benefit principle.
E)  Internal control procedures are designed to ensure reliable financial reports.F) A) and E)
G) D) and E)

Question 15

List the five basic components of accounting information systems and give an example of each.

Accepted Answer

The five basic components of accounting ...

Question 16

Due to electronic files and Web communications, source documents are no longer required.

Accepted Answer

A) True 
 B)False

Question 17

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Accepted Answer

To foot a column of numbers is to add it...

Question 18

Which of the following is not an output device?

Accepted Answer

A)  Web communications.
B)  Printers.
C)  Bar code readers.
D)  Projectors.
E)  Monitors.F) B) and E)
G) D) and E) C

Question 19

Match between columns
                        Premises: A journal used to record sales of merchandise on credit.
A special journal used to record all payments of cash.
A journal with more than one column for recording data.
A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.
A general ledger account, the balance of which, after posting, equals the sum of the balances of the accounts in its related subsidiary ledger.
A journal used to record all purchases on credit.
A record of the separate accounts of each credit customer that is controlled by a general ledger account.
The special journal used to record all receipts of cash.
Any journal used for recording and posting transactions of a similar type.
A list of each customer from the accounts payable ledger with their balances and the total.

Accepted Answer

The Answer of Accounts receivable ledger and Sales journal and is...

Question 20

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Accepted Answer

A)  When the creditors receive their payments.
B)  When the sum of the vendor accounts does not equal the balance in the Purchases journal.
C)  When the purchases journal is posted to the general ledger.
D)  When the financial statements are prepared.
E)  When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.F) C) and E)
G) B) and C)

Exam 7: Accounting Information Systems

When a company uses special journals, the general journal is used to record selected transactions and events including:

Correct Answer
verified

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

Correct Answer
verified

Subsidiary ledgers do all of the following except:

Correct Answer
verified

Which of the following journals would a company use to record a merchandise return?

Correct Answer
verified

A subsidiary ledger:

Correct Answer
verified

Discuss how technology based information systems affect accounting.

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Correct Answer
verified

A company would use which of the following journals to record cash payments?

Correct Answer
verified

The flexibility principle of accounting information systems prescribes that the:

Correct Answer
verified

The purchases journal is typically used to record only purchases of inventory.

Correct Answer
verified

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Correct Answer
verified

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Correct Answer
verified
Under the perpetual inventory system, th...
View Answer

Assume that a company uses special journals for sales, purchases, cash receipts, and cash disbursements. A sales return for credit on account would be recorded in the:

Correct Answer
verified

Which of the following statements is not true regarding internal control procedures?

Correct Answer
verified

List the five basic components of accounting information systems and give an example of each.

Correct Answer
verified
The five basic components of accounting ...
View Answer

Due to electronic files and Web communications, source documents are no longer required.

Correct Answer
verified

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Correct Answer
verified
To foot a column of numbers is to add it...
View Answer

Which of the following is not an output device?

Correct Answer
verified
C

Match the appropriate definitions with correct term..

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Correct Answer
verified

Exam 7: Accounting Information Systems

When a company uses special journals, the general journal is used to record selected transactions and events including:

Correct AnswerverifiedShow Answer

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

Correct AnswerverifiedShow Answer

Subsidiary ledgers do all of the following except:

Correct AnswerverifiedShow Answer

Which of the following journals would a company use to record a merchandise return?

Correct AnswerverifiedShow Answer

A subsidiary ledger:

Correct AnswerverifiedShow Answer

Discuss how technology based information systems affect accounting.

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Correct AnswerverifiedShow Answer

A company would use which of the following journals to record cash payments?

Correct AnswerverifiedShow Answer

The flexibility principle of accounting information systems prescribes that the:

Correct AnswerverifiedShow Answer

The purchases journal is typically used to record only purchases of inventory.

Correct AnswerverifiedShow Answer

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Correct AnswerverifiedShow Answer

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Correct AnswerverifiedUnder the perpetual inventory system, th...View AnswerShow Answer

Assume that a company uses special journals for sales, purchases, cash receipts, and cash disbursements. A sales return for credit on account would be recorded in the:

Correct AnswerverifiedShow Answer

Which of the following statements is not true regarding internal control procedures?

Correct AnswerverifiedShow Answer

List the five basic components of accounting information systems and give an example of each.

Correct AnswerverifiedThe five basic components of accounting ...View AnswerShow Answer

Due to electronic files and Web communications, source documents are no longer required.

Correct AnswerverifiedShow Answer

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Correct AnswerverifiedTo foot a column of numbers is to add it...View AnswerShow Answer

Which of the following is not an output device?

Correct AnswerverifiedC

Match the appropriate definitions with correct term..

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Under the perpetual inventory system, th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The five basic components of accounting ...
View Answer

Correct Answer
verified

Correct Answer
verified
To foot a column of numbers is to add it...
View Answer

Correct Answer
verified
C

Correct Answer
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