Question 1

An accounts payable ledger:

Accepted Answer

A) Contains an account for each credit customer. 
B) Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding. 
C) Is a book of original entry designed and used for recording only a specified type of transaction. 
D) Contains the financial statement accounts of a business. 
E) Contains a separate account for each creditor (supplier)to the company. 
A) Contains an account for each credit customer. 
B) Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding. 
C) Is a book of original entry designed and used for recording only a specified type of transaction. 
D) Contains the financial statement accounts of a business. 
E) Contains a separate account for each creditor (supplier)to the company.

Question 2

The accounting principle that prescribes an accounting information system conform with a company's activities,personnel,and structure is the:

Accepted Answer

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

Question 3

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

Question 4

Which of the following statements regarding input devices is not true?

Accepted Answer

A) Input devices capture information from source documents and enable its transfer to the system's information processing component. 
B) Input devices convert data on source documents from written form to a form usable for the system. 
C) Input devices include keyboards,scanners,and modems. 
D) Input devices include journal entries. 
E) Input devices make accounting system information available to users. 
A) Input devices capture information from source documents and enable its transfer to the system's information processing component. 
B) Input devices convert data on source documents from written form to a form usable for the system. 
C) Input devices include keyboards,scanners,and modems. 
D) Input devices include journal entries. 
E) Input devices make accounting system information available to users.

Question 5

The __________________ principle requires that an accounting information system conforms with a company's activities,personnel,and structure,and must adapt to a company's unique characteristics.

Accepted Answer

The answer of The __________________ principle requires that an accounting...

Question 6

__________________ provide the basic information processed by an accounting system,and can include bank statements,billings to customers,and employee earnings records.

Accepted Answer

The answer of __________________ provide the basic information processed by...

Question 7

A company uses four special journals: purchases,sales,cash receipts,and cash disbursements.The following purchase and cash payments transactions were incurred during August:   Record these transactions in the appropriate special journals below.

Accepted Answer

The answer of A company uses four special journals: purchases,sales,cash...

Question 8

A business segment is part of a company that:

Accepted Answer

A) Requires only internal reporting. 
B) Is separately identified by its products,services,or geographic market. 
C) Requires special journals. 
D) Requires subsidiary ledgers. 
E) Cannot report its results separately. 
A) Requires only internal reporting. 
B) Is separately identified by its products,services,or geographic market. 
C) Requires special journals. 
D) Requires subsidiary ledgers. 
E) Cannot report its results separately.

Question 9

Input devices include:

Accepted Answer

A) Scanners. 
B) Printers. 
C) Software. 
D) Ledgers. 
E) Information processors. 
A) Scanners. 
B) Printers. 
C) Software. 
D) Ledgers. 
E) Information processors.

Question 10

The segment return on assets:

Accepted Answer

A) Is applicable whether segments earn profits or losses. 
B) Reflects on the profitability of a segment. 
C) Is difficult to calculate because companies with traded stock are not required to report segment information. 
D) Is calculated as segment average assets divided by segment operating income. 
E) Is calculated as segment sales divided by segment average assets. 
A) Is applicable whether segments earn profits or losses. 
B) Reflects on the profitability of a segment. 
C) Is difficult to calculate because companies with traded stock are not required to report segment information. 
D) Is calculated as segment average assets divided by segment operating income. 
E) Is calculated as segment sales divided by segment average assets.

Question 11

A ____________________ is a part of a company that is separately identified by its products,or services,or by the geographic market it serves.

Accepted Answer

The answer of A ____________________ is a part of a...

Question 12

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Accepted Answer

The answer of _______________________ are links among computers giving different...

Question 13

A record that contains detailed information on specific accounts with a common characteristic and is support for a controlling account is a(n):

Accepted Answer

A) Subsidiary ledger. 
B) General ledger. 
C) Special ledger. 
D) All-purpose ledger. 
E) Column balance ledger. 
A) Subsidiary ledger. 
B) General ledger. 
C) Special ledger. 
D) All-purpose ledger. 
E) Column balance ledger.

Question 14

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000.Two days later Doughton returned $2,000 of the merchandise due to damage.Doughton would record the return of merchandise in the:

Accepted Answer

A) General journal. 
B) Cash receipts journal. 
C) Cash disbursements journal. 
D) Purchases journal. 
E) Accounts Payable controlling account. 
A) General journal. 
B) Cash receipts journal. 
C) Cash disbursements journal. 
D) Purchases journal. 
E) Accounts Payable controlling account.

Question 15

Wexim Toys purchased merchandise from a supplier on credit,terms 2/10,n/30 for $9,300.Three days later the company returned $1,100 of the merchandise.When recording the return transaction,the company would record:

Accepted Answer

A) $1,100 in the Accounts Payable Cr.column and $1,100 in the Inventory Dr.column of the purchases journal. 
B) Debit Accounts Payable $1,100 and credit Inventory $1,100 in the general journal. 
C) $1,100 in the Cash Cr.column and $1,100 in the Inventory Cr.column in the cash disbursements journal. 
D) Debit Cash $1,100 and credit Inventory $1,100 in the general journal. 
E) $1,100 in the Accounts Payable Dr.column and $1,100 in the Cash Cr.column of the cash disbursements journal. 
A) $1,100 in the Accounts Payable Cr.column and $1,100 in the Inventory Dr.column of the purchases journal. 
B) Debit Accounts Payable $1,100 and credit Inventory $1,100 in the general journal. 
C) $1,100 in the Cash Cr.column and $1,100 in the Inventory Cr.column in the cash disbursements journal. 
D) Debit Cash $1,100 and credit Inventory $1,100 in the general journal. 
E) $1,100 in the Accounts Payable Dr.column and $1,100 in the Cash Cr.column of the cash disbursements journal.

Question 16

Farthington Soccer Supplies purchases merchandise from a supplier on credit,terms 2/10,n/30 for $15,300.When recording the payment transaction made within the discount period in its cash disbursement journal,Farthington would enter:

Accepted Answer

A) $15,300 in the Cash Cr.column and $15,300 in the Inventory Dr.column. 
B) $15,300 in the Cash Cr.column and $15,300 in the Accounts Payable Dr.column. 
C) $15,300 in the Inventory Cr.column;$14,994 in the Accounts Payable Dr.column;and $306 in the Inventory Cr.column. 
D) $14,994 in the Accounts Payable Dr.column and $14,994 in the Cash Cr.column. 
E) $15,300 in the Accounts Payable Dr.column;$14,994 in the Cash Cr.column;and $306 in the Inventory Cr.column. 
A) $15,300 in the Cash Cr.column and $15,300 in the Inventory Dr.column. 
B) $15,300 in the Cash Cr.column and $15,300 in the Accounts Payable Dr.column. 
C) $15,300 in the Inventory Cr.column;$14,994 in the Accounts Payable Dr.column;and $306 in the Inventory Cr.column. 
D) $14,994 in the Accounts Payable Dr.column and $14,994 in the Cash Cr.column. 
E) $15,300 in the Accounts Payable Dr.column;$14,994 in the Cash Cr.column;and $306 in the Inventory Cr.column.

Question 17

The basic components of an accounting information system include all of the following except:

Accepted Answer

A) Source documents. 
B) Warehouses. 
C) Information processors. 
D) Information storage. 
E) Output devices. 
A) Source documents. 
B) Warehouses. 
C) Information processors. 
D) Information storage. 
E) Output devices.

Question 18

____________________ is the accounting system component that keeps data in a form accessible to information processors.

Accepted Answer

The answer of ____________________ is the accounting system component that...

Question 19

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

Accepted Answer

A) Schedule of accounts. 
B) Controlling account. 
C) Schedule of accounts receivable. 
D) Subsidiary ledger. 
E) Special journal. 
A) Schedule of accounts. 
B) Controlling account. 
C) Schedule of accounts receivable. 
D) Subsidiary ledger. 
E) Special journal.

Question 20

Salem Co.uses special journals to record its transactions.They use the perpetual inventory system.Shown below are the purchasing and cash disbursement transactions for current month of July:   Record these transactions in the following journals.

Accepted Answer

The answer of Salem Co.uses special journals to record its...

Exam 7: Accounting Information Systems

An accounts payable ledger:

The accounting principle that prescribes an accounting information system conform with a company's activities,personnel,and structure is the:

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

Which of the following statements regarding input devices is not true?

The __________________ principle requires that an accounting information system conforms with a company's activities,personnel,and structure,and must adapt to a company's unique characteristics.

__________________ provide the basic information processed by an accounting system,and can include bank statements,billings to customers,and employee earnings records.

A company uses four special journals: purchases,sales,cash receipts,and cash disbursements.The following purchase and cash payments transactions were incurred during August: Record these transactions in the appropriate special journals below.

A business segment is part of a company that:

Input devices include:

The segment return on assets:

A ____________________ is a part of a company that is separately identified by its products,or services,or by the geographic market it serves.

_______________________ are links among computers giving different users and different computers access to common databases and programs.

A record that contains detailed information on specific accounts with a common characteristic and is support for a controlling account is a(n):

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000.Two days later Doughton returned $2,000 of the merchandise due to damage.Doughton would record the return of merchandise in the:

Wexim Toys purchased merchandise from a supplier on credit,terms 2/10,n/30 for $9,300.Three days later the company returned $1,100 of the merchandise.When recording the return transaction,the company would record:

Farthington Soccer Supplies purchases merchandise from a supplier on credit,terms 2/10,n/30 for $15,300.When recording the payment transaction made within the discount period in its cash disbursement journal,Farthington would enter:

The basic components of an accounting information system include all of the following except:

____________________ is the accounting system component that keeps data in a form accessible to information processors.

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

Salem Co.uses special journals to record its transactions.They use the perpetual inventory system.Shown below are the purchasing and cash disbursement transactions for current month of July: Record these transactions in the following journals.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters