Question 1

Individual transactions in the sales journal are posted regularly to customers' accounts in the
________.

Accepted Answer

accounts r

Question 2

Which of the following is not an output device?

Accepted Answer

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

Question 3

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Accepted Answer

A) True 
 B)False

Question 4

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 5

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Accepted Answer

A) True 
 B)False

Question 6

Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale. The cost of the birdseed was $370. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

Accepted Answer

A)  $860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column. 
B)  $860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Other Accounts Cr. column. 
C)  $370 in the Cash Dr. column and $370 in the Accounts Receivable Cr. column. 
D)  $860 in the Accounts Receivable Dr. column, $860 in the Cash Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column. 
E)  $860 in the Cash Dr. column and $860 in the Accounts Receivable Cr. column. 
A)  $860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column. 
B)  $860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Other Accounts Cr. column. 
C)  $370 in the Cash Dr. column and $370 in the Accounts Receivable Cr. column. 
D)  $860 in the Accounts Receivable Dr. column, $860 in the Cash Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column. 
E)  $860 in the Cash Dr. column and $860 in the Accounts Receivable Cr. column.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

An accounts payable ledger:

Accepted Answer

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

Question 9

Segment information is not helpful to investors for evaluating a company's profitability, risk, or growth.

Accepted Answer

A) True 
 B)False

Question 10

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. 
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.

Question 11

A ________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

Accepted Answer

schedule o

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

Source documents:

Accepted Answer

A)  Convert information to the system's processing component. 
B)  Are input devices. 
C)  Cannot be electronic files or web communications. 
D)  Store processed information for future use. 
E)  Provide the basic information processed by an accounting system. 
A)  Convert information to the system's processing component. 
B)  Are input devices. 
C)  Cannot be electronic files or web communications. 
D)  Store processed information for future use. 
E)  Provide the basic information processed by an accounting system.

Question 14

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Accepted Answer

A) True 
 B)False

Question 15

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Accepted Answer

A) True 
 B)False

Question 16

A company makes a payment of $5,000 on a long-term note payable. The journal the transaction would be recorded in is the:

Accepted Answer

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

Question 17

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Question 18

Input devices involve converting data on source documents from written or electronic form to a form usable for the system.

Accepted Answer

A) True 
 B)False

Question 19

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

Accepted Answer

A) True 
 B)False

Question 20

Enterprise-resource planning software:

Accepted Answer

A)  Uses batch processing of business information. 
B)  Is another name for spreadsheet programs. 
C)  Refers to programs that help manage a company's vital operations. 
D)  Is substantially declining in use. 
E)  Is another name for database programs. 
A)  Uses batch processing of business information. 
B)  Is another name for spreadsheet programs. 
C)  Refers to programs that help manage a company's vital operations. 
D)  Is substantially declining in use. 
E)  Is another name for database programs.

Exam 7: Accounting Information Systems

Individual transactions in the sales journal are posted regularly to customers' accounts in the ________.

Which of the following is not an output device?

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

A columnar journal is any journal with only one column.

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale. The cost of the birdseed was $370. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

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

An accounts payable ledger:

Segment information is not helpful to investors for evaluating a company's profitability, risk, or growth.

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

A ________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

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

Source documents:

Most companies use online processing instead of batch processing because online processing immediately updates databases.

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

A company makes a payment of $5,000 on a long-term note payable. The journal the transaction would be recorded in is the:

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Input devices involve converting data on source documents from written or electronic form to a form usable for the system.

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

Enterprise-resource planning software:

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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