Question 1

The Accounts Payable account in the general ledger is:

Accepted Answer

A)  The subsidiary account to the purchases journal. 
B)  A controlling account for the subsidiary accounts payable ledger. 
C)  Part of a special journal. 
D)  The account that controls the purchases journal. 
E)  Part of a subsidiary ledger. 
A)  The subsidiary account to the purchases journal. 
B)  A controlling account for the subsidiary accounts payable ledger. 
C)  Part of a special journal. 
D)  The account that controls the purchases journal. 
E)  Part of a subsidiary ledger.

Question 2

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

Question 3

______________refers to the programs that help managers direct a company's vital operations.

Accepted Answer

Enterprise

Question 4

Accounting information processes are structured to eliminate the need for professional judgment.

Accepted Answer

A) True 
 B)False

Question 5

The purchases journal is used for recording:

Accepted Answer

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

Question 6

A ________ journal is used to record and post transactions of similar type.

Accepted Answer

The answer of A ________ journal is used to record...

Question 7

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Accepted Answer

A) True 
 B)False

Question 8

________ 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 9

The following special journal is taken from a merchandising company that uses the perpetual inventory system:
1. What is the name of the journal shown above?
2. Write an explanation for each entry in this journal.
3. What do the numbers in parentheses at the bottom of the journal indicate?

Accepted Answer

2. Journal entries 
 @#IMG-DLM&The numbe

Question 10

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

Accepted Answer

A)  Batch processing. 
B)  Web communications. 
C)  Computer programming. 
D)  Online processing. 
E)  Date storage. 
A)  Batch processing. 
B)  Web communications. 
C)  Computer programming. 
D)  Online processing. 
E)  Date storage.

Question 11

________ processing of transactions accumulates source documents for a period of time and then processes them all at once such as daily, weekly, or monthly.

Accepted Answer

The answer of ________ processing of transactions accumulates source documents...

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

Enter the letter of the following terms on the line next to the appropriate definition of each.
1. The component of an accounting system that is the means to take information from an accounting system and make it available to users.
2. The means of collecting and processing data from transactions and events, organizing them into useful reports, and communicating results to decision makers.
3. A record of the separate accounts of each supplier that supports its general ledger controlling account.
4. The component of an accounting system that keeps data in a form accessible to information processors.
5. The special journal used to record all receipts of cash.
6. The special journal that is used to record all cash payments.
7. The component of an accounting system that captures source document information and enables
its transfer to the information processor.
8. An information system principle that prescribes that an accounting system have methods and procedures allowing managers to control and monitor business activities.
9. The special journal used to record all purchases made on account.
10. An information system principle requiring that an accounting system report useful, understandable, timely, and pertinent information for decision making.

Accepted Answer

Accounting information system 2
Purchase

Question 15

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A company entered into the following transactions. For each transaction, indicate the appropriate journal in which it should be recorded.
a. Sales Journal
b. Purchases Journal
c. Cash Receipts Journal
d. Cash Disbursements Journal
e. General Journal
_____ 1. Purchased merchandise on credit.
_____ 2. Sold merchandise on credit.
3. Purchased merchandise for cash.
_____ 4. Sold merchandise for cash.
_____ 5. Paid cash to settle the utility bill.
_____ 6. Owner invested more cash in the business.
_____ 7. Recorded depreciation for the period.
_____ 8. Borrowed cash from the bank.
9. Bought office supplies on credit.
10. Received cash from a customer to settle an account receivable.

Accepted Answer

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

Question 18

Which of the following is not a feature of special journals?

Accepted Answer

A)  They produce an efficient division of labor. 
B)  They eliminate the need for a general journal. 
C)  Good system design could collapse sales and cash receipts into one journal to better suit a business. 
D)  They allow posting of amounts as column totals rather than as individual amounts. 
E)  They are efficient tools in helping journalize and post transactions. 
A)  They produce an efficient division of labor. 
B)  They eliminate the need for a general journal. 
C)  Good system design could collapse sales and cash receipts into one journal to better suit a business. 
D)  They allow posting of amounts as column totals rather than as individual amounts. 
E)  They are efficient tools in helping journalize and post transactions.

Question 19

An advantage of online processing is that databases are updated in batches.

Accepted Answer

A) True 
 B)False

Question 20

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

The Accounts Payable account in the general ledger is:

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:

______________refers to the programs that help managers direct a company's vital operations.

Accounting information processes are structured to eliminate the need for professional judgment.

The purchases journal is used for recording:

A ________ journal is used to record and post transactions of similar type.

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

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

The following special journal is taken from a merchandising company that uses the perpetual inventory system: 1. What is the name of the journal shown above? 2. Write an explanation for each entry in this journal. 3. What do the numbers in parentheses at the bottom of the journal indicate?

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

________ processing of transactions accumulates source documents for a period of time and then processes them all at once such as daily, weekly, or monthly.

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

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

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

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

Which of the following is not a feature of special journals?

An advantage of online processing is that databases are updated in batches.

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

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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