Exam 7: Accounting Information Systems

The ________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

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:

Subsidiary ledgers do all of the following except:

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

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:

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 collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Describe the posting process for special journals.

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers.

For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:

Which of the following statements regarding accounting information systems is not true?

Enterprise resource planning software is primarily used for recording journal entries.

The five fundamental principles of accounting information systems are:

The accounts receivable ledger is used for storing transactions data regarding individual customers.

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 A is:

Special journals allow an efficient division of labor, which is also an effective control procedure.

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

Explain how the amounts in the subsidiary ledgers are proved (or reviewed) for accuracy.