Question 1

Enter the letter of the following terms on the line next to the appropriate definition of each.

Accepted Answer

The answer of Enter the letter of the following terms...

Question 2

The main difference in the sales journal under the perpetual and periodic inventory system is:

Accepted Answer

A) The perpetual system has a column to record cost of goods sold but not the periodic system does not. 
B) The sales tax receivable column that is used under the perpetual system but not the periodic. 
C) The sales tax payable column that is used under the perpetual system but not the periodic. 
D) The accounts receivable column that is used under the perpetual system but not the periodic. 
E) The column for recording cash that is used under the perpetual system but not the periodic. 
A) The perpetual system has a column to record cost of goods sold but not the periodic system does not. 
B) The sales tax receivable column that is used under the perpetual system but not the periodic. 
C) The sales tax payable column that is used under the perpetual system but not the periodic. 
D) The accounts receivable column that is used under the perpetual system but not the periodic. 
E) The column for recording cash that is used under the perpetual system but not the periodic.

Question 3

The purchases journal is used for recording:

Accepted Answer

A) Credit purchases. 
B) Credit sales. 
C) Cash sales. 
D) Cash purchases. 
E) Cash disbursements. 
A) Credit purchases. 
B) Credit sales. 
C) Cash sales. 
D) Cash purchases. 
E) Cash disbursements.

Question 4

The Tigre Company uses special journals for sales,purchases,cash receipts,cash disbursements,and uses a general journal.They operate with a perpetual inventory system.Record the following transactions related to purchases and cash payments that occurred during the current month of June:   Record the above transactions into the appropriate journals shown below.

Accepted Answer

The answer of The Tigre Company uses special journals for...

Question 5

Which of the following is not true about enterprise resource planning (ERP)software:

Accepted Answer

A) ERP refers to programs that help manage a company's vital operations. 
B) ERP can include programs that extend from order taking to manufacturing to accounting. 
C) ERP can speed up business decision making and help reduce costs. 
D) ERP cannot be used to share data with customers and suppliers. 
E) ERP can be designed to link every part of a company's operations. 
A) ERP refers to programs that help manage a company's vital operations. 
B) ERP can include programs that extend from order taking to manufacturing to accounting. 
C) ERP can speed up business decision making and help reduce costs. 
D) ERP cannot be used to share data with customers and suppliers. 
E) ERP can be designed to link every part of a company's operations.

Question 6

The accounts receivable ledger:

Accepted Answer

A) Is a substitute for the sales journal. 
B) Stores transaction data for individual customers. 
C) Stores transaction data for individual creditors. 
D) Is a substitute for the cash receipts journal. 
E) Is also the controlling account. 
A) Is a substitute for the sales journal. 
B) Stores transaction data for individual customers. 
C) Stores transaction data for individual creditors. 
D) Is a substitute for the cash receipts journal. 
E) Is also the controlling account.

Question 7

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290.Chandler would record this sale in the:

Accepted Answer

A) General journal. 
B) Cash receipts journal. 
C) Sales journal. 
D) General ledger. 
E) Accounts Receivable controlling account. 
A) General journal. 
B) Cash receipts journal. 
C) Sales journal. 
D) General ledger. 
E) Accounts Receivable controlling account.

Question 8

Information storage databases:

Accepted Answer

A) Eliminate the need for professional judgment. 
B) Are relied on by auditors of the financial statements. 
C) Should not be cloud based. 
D) Capture information from source documents. 
E) Need not be accessible once data is processed. 
A) Eliminate the need for professional judgment. 
B) Are relied on by auditors of the financial statements. 
C) Should not be cloud based. 
D) Capture information from source documents. 
E) Need not be accessible once data is processed.

Question 9

The Accounts Payable controlling account:

Accepted Answer

A) Is not included in a company's chart of accounts. 
B) Stores the transaction data of individual supplies. 
C) Reduces the number of entries in the general journals. 
D) Equals the sum of all balances of supplier accounts. 
E) Increases the number of columns in the journals. 
A) Is not included in a company's chart of accounts. 
B) Stores the transaction data of individual supplies. 
C) Reduces the number of entries in the general journals. 
D) Equals the sum of all balances of supplier accounts. 
E) Increases the number of columns in the journals.

Question 10

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

Question 11

Which of the following journals would a company use to record cash collections from customers,net of discounts taken?

Accepted Answer

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

Question 12

Health Co.Company uses special journals to record transactions.Health Co.uses the perpetual inventory system.Journalize the following transactions in the appropriate special journal.All credit sales have 2/10,n/30 terms.

Accepted Answer

The answer of Health Co.Company uses special journals to record...

Question 13

Barrier Scuba Equipment purchased supplies costing $3,000 on credit.Identify the journal the transaction would be recorded in.

Accepted Answer

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

Question 14

The _________________ principle requires that an accounting information system report useful,understandable,timely,and pertinent information for effective decision making.

Accepted Answer

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

Question 15

The Skyview Company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.They use the periodic inventory method.The following sales and cash collections transactions occurred during the month of December:   Record these transactions using the journals below.

Accepted Answer

The answer of The Skyview Company uses a sales journal,purchases...

Question 16

This is a cash receipts journal (perpetual system).
2.Journal entries explanation:

Accepted Answer

The answer of This is a cash receipts journal (perpetual...

Question 17

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) 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 18

_____________________________________ consist of people,records,methods,and equipment that collect and process data from transactions and events,organize them in useful reports and communicate results to decision makers.

Accepted Answer

Accounting

Question 19

Maxie's Game World sold games to a customer on credit for $2,600,terms 1/10,n/30 and the cost of the games was $1,700.When recording the sales transaction in its sales journal,Maxie's would enter:

Accepted Answer

A) $1,700 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cost of Goods Sold Dr./Inventory Cr.column. 
B) $2,600 in the Accounts Receivable Dr./Sales Cr.column and $1,700 in the Accounts Payable Dr./Purchases Cr.column. 
C) $2,600 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cash Cr.column. 
D) $2,600 in the Accounts Receivable Dr./Sales Cr.column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr.column. 
E) $1,700 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Other Accounts column Dr.column. 
A) $1,700 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cost of Goods Sold Dr./Inventory Cr.column. 
B) $2,600 in the Accounts Receivable Dr./Sales Cr.column and $1,700 in the Accounts Payable Dr./Purchases Cr.column. 
C) $2,600 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cash Cr.column. 
D) $2,600 in the Accounts Receivable Dr./Sales Cr.column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr.column. 
E) $1,700 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Other Accounts column Dr.column.

Question 20

A company that reports segment information had average total assets of $1,522,450 and total net income of $590,700.Segment A had average total assets of $927,800 and segment operating income of $298,300.Segment B had average assets of $594,650 and segment operating income of $292,400.The segment return on assets for Segment B is:

Accepted Answer

A) 60.9%. 
B) 32.2%. 
C) 50.5%. 
D) 38.8%. 
E) 49.2%. 
A) 60.9%. 
B) 32.2%. 
C) 50.5%. 
D) 38.8%. 
E) 49.2%.

Exam 7: Accounting Information Systems

Enter the letter of the following terms on the line next to the appropriate definition of each.

The main difference in the sales journal under the perpetual and periodic inventory system is:

The purchases journal is used for recording:

Which of the following is not true about enterprise resource planning (ERP)software:

The accounts receivable ledger:

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290.Chandler would record this sale in the:

Information storage databases:

The Accounts Payable controlling account:

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:

Which of the following journals would a company use to record cash collections from customers,net of discounts taken?

Health Co.Company uses special journals to record transactions.Health Co.uses the perpetual inventory system.Journalize the following transactions in the appropriate special journal.All credit sales have 2/10,n/30 terms.

Barrier Scuba Equipment purchased supplies costing $3,000 on credit.Identify the journal the transaction would be recorded in.

The _________________ principle requires that an accounting information system report useful,understandable,timely,and pertinent information for effective decision making.

This is a cash receipts journal (perpetual system). 2.Journal entries explanation:

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

_____________________________________ consist of people,records,methods,and equipment that collect and process data from transactions and events,organize them in useful reports and communicate results to decision makers.

Maxie's Game World sold games to a customer on credit for $2,600,terms 1/10,n/30 and the cost of the games was $1,700.When recording the sales transaction in its sales journal,Maxie's would enter:

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

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