Question 1

Individual transactions in the purchases journal are regularly posted to creditor accounts in the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

The ________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

Accepted Answer

segment re

Question 4

Discuss how technology based information systems affect accounting.

Accepted Answer

Technology based information systems hav

Question 5

The accounts receivable ledger:

Accepted Answer

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

Question 6

All of the following statements regarding source documents are true except:

Accepted Answer

A)  Source documents can include Web communications. 
B)  Source documents can be paper or electronic files. 
C)  Source documents provide the basic information processed by an accounting system. 
D)  Source documents should not be sent directly from a company's system to its customers or suppliers. 
E)  Source documents include invoices, cash register files, and employee earnings records. 
A)  Source documents can include Web communications. 
B)  Source documents can be paper or electronic files. 
C)  Source documents provide the basic information processed by an accounting system. 
D)  Source documents should not be sent directly from a company's system to its customers or suppliers. 
E)  Source documents include invoices, cash register files, and employee earnings records.

Question 7

______________are the part of the accounting information system that interprets, transforms, and summarizes information for use in analysis and reporting.

Accepted Answer

Informatio

Question 8

Two common subsidiary ledgers are cash receipts and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 9

The following information is available for Napa, Inc. (all amounts are in millions):
 $$\begin{array} { | l | r | r | r | } 
\hline& \text { U.s. } & \text { Canada. } & \text { Europe } \
\hline \text { Segment sales } & \$ 7,745 & \$ 8,940 & \$ 4.780 \
\hline \text { Segment operating income } & 2,320 & 2,455 & 595 \
\hline \text { Segment average assets } & 5,590 &8 . 7 5 0 & 1,480 \
\hline
\end{array}$$ a. Determine the segment return on assets for each geographic segment.
b. Comment on the results. How do the segments compare with respect to profitability?

Accepted Answer

a. U.S. = $2,320/$5,590 = 41.5%
Canada =

Question 10

Alex Reagent, owner of Delectable Candy Company, understands that accounting systems are important for success. Explain how Alex can use the accounting system to assess business operations.

Accepted Answer

The accounting system can be used to mea

Question 11

The control principle for accounting information systems requires that the:

Accepted Answer

A)  System report useful, understandable, timely, and pertinent information for effective decision making. 
B)  System be able to adjust to changes in the company, business environment, and needs of decision makers. 
C)  System conforms to a company's activities, personnel, and structure. 
D)  Benefits from an activity outweigh the costs of the activity. 
E)  System must have methods and procedures allowing managers to control and monitor business activities. 
A)  System report useful, understandable, timely, and pertinent information for effective decision making. 
B)  System be able to adjust to changes in the company, business environment, and needs of decision makers. 
C)  System conforms to a company's activities, personnel, and structure. 
D)  Benefits from an activity outweigh the costs of the activity. 
E)  System must have methods and procedures allowing managers to control and monitor business activities.

Question 12

A______________ is an all-purpose journal that can record any type of transaction.

Accepted Answer

The answer of A______________ is an all-purpose journal that can...

Question 13

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n):

Accepted Answer

A)  Controlling account. 
B)  Special journal. 
C)  Accounts receivable ledger. 
D)  General ledger. 
E)  Accounts payable ledger. 
A)  Controlling account. 
B)  Special journal. 
C)  Accounts receivable ledger. 
D)  General ledger. 
E)  Accounts payable ledger.

Question 14

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts.

Accepted Answer

A) True 
 B)False

Question 15

External users of financial statements are generally interested in segment information to understand a company's business activities.

Accepted Answer

A) True 
 B)False

Question 16

Match the following accounting system components a-e with their related items 1-10 by placing the correct letter next to each item.
a. Source documents
b. Input devices
c. Information processor
d. Information storage
e. Output devices
_____ 1. Computer keyboard
2. Computer hard drive
_____ 3. Journal entries
_____ 4. Journals
_____ 5. Financial statements
_____ 6. Invoice from suppliers
_____ 7. Employee paychecks
_____ 8. Computer monitor
_____ 9. Software
_____ 10. Electronic files

Accepted Answer

1. B; 2. D; 3. B; 4.

Question 17

Computer networks are links among computers giving different users and different computers access to common databases, programs, and hardware.

Accepted Answer

A) True 
 B)False

Question 18

Output devices include journal entries, keyboards and scanners.

Accepted Answer

A) True 
 B)False

Question 19

If a company issues a check for $2,900 in payment of merchandise, identify the journal the transaction would be recorded in:

Accepted Answer

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

Question 20

The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Individual transactions in the purchases journal are regularly posted to creditor accounts in the accounts payable ledger.

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

The ________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

Discuss how technology based information systems affect accounting.

The accounts receivable ledger:

All of the following statements regarding source documents are true except:

______________are the part of the accounting information system that interprets, transforms, and summarizes information for use in analysis and reporting.

Two common subsidiary ledgers are cash receipts and cash disbursements.

Alex Reagent, owner of Delectable Candy Company, understands that accounting systems are important for success. Explain how Alex can use the accounting system to assess business operations.

The control principle for accounting information systems requires that the:

A______________ is an all-purpose journal that can record any type of transaction.

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n):

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts.

External users of financial statements are generally interested in segment information to understand a company's business activities.

Computer networks are links among computers giving different users and different computers access to common databases, programs, and hardware.

Output devices include journal entries, keyboards and scanners.

If a company issues a check for $2,900 in payment of merchandise, identify the journal the transaction would be recorded in:

The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.

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 Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

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