Question 1

Information processors:

Accepted Answer

A) Include information storage. 
B) Interpret, transform, and summarize information for use in analysis and reporting. 
C) Are components of an accounting system that keep data in accessible form. 
D) Are the means to take information out of an accounting system and make it available to users. 
E) Include scanners. 
A) Include information storage. 
B) Interpret, transform, and summarize information for use in analysis and reporting. 
C) Are components of an accounting system that keep data in accessible form. 
D) Are the means to take information out of an accounting system and make it available to users. 
E) Include scanners.

Question 2

The flexibility principle prescribes that an accounting information system conform with a company's activities,personnel,and structure and adapt to a company's unique characteristics.

Accepted Answer

A) True 
 B)False

Question 3

A company records its transactions and events in four special journals and a general journal.The company completed the following transactions a through j.Identify the journal in which each transaction should be recorded.
a.Sold merchandise on account. __________________
b.Collected on a customer's account. __________________
c.Paid the monthly electric bill. __________________
d.Purchased office supplies on credit. __________________
e.Sold merchandise for cash. __________________
f.Paid a creditor. __________________
g.A customer returned merchandise for credit.__________________
h.Purchased merchandise on account. __________________
i.Received proceeds from a note issued to the bank.__________________
j.Returned damaged merchandise to the supplier.__________________

Accepted Answer

The answer of A company records its transactions and events...

Question 4

Explain the purposes,types,and uses of special journals.

Accepted Answer

Special journals are used for recording

Question 5

Williams Company began business on May 1.They use the perpetual inventory method.The following transactions involving purchases and cash disbursements occurred during the first week of May.
   a.Use the purchases journal and the cash disbursements journal to record these transactions.
b.Prepare a schedule of accounts payable.There was no accounts payable on May 1.

Accepted Answer

The answer of Williams Company began business on May 1.They...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The Woodview Company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.They use the perpetual method.The following transactions occurred during the current month of December:
   Record the above transactions into the appropriate journals shown below.

Accepted Answer

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

Question 8

Match between columns
                        Premises: Programs that manage a company's vital operations which range from order-taking to manufacturing to accounting.
An information system principle requiring that an accounting system report useful,understandable,timely,and pertinent information for decision making.
A part of a company that can be separately identified by the products or services that it provides,or by the geographic market that it serves.
The special journal that is used to record all payments of cash.
The component of an accounting system that interprets,transforms,and summarizes information for use in analysis and reporting.
The people,records,methods,and equipment that collect and process data from transactions and events,organize them in useful forms,and communicate results to decision makers.
The special journal used to record all receipts of cash.
A list of each customer from the accounts receivable ledger with their balances and the total.
An information system principle requiring that an accounting information system aid managers in controlling and monitoring business activities.
Links among computers giving different users and different computers access to common databases and programs.

Accepted Answer

The Answer of Business segment and Schedule of accounts receivable is...

Question 9

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

Accepted Answer

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

Question 10

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

Accepted Answer

A) True 
 B)False

Question 11

Information storage:

Accepted Answer

A) Eliminates the need for professional judgment. 
B) Keeps data in a form accessible to information processors. 
C) Provides the basic information processed by an accounting system. 
D) Captures information from source documents. 
E) Cannot be online. 
A) Eliminates the need for professional judgment. 
B) Keeps data in a form accessible to information processors. 
C) Provides the basic information processed by an accounting system. 
D) Captures information from source documents. 
E) Cannot be online.

Question 12

Medco Company uses special journals to record transactions.Medco 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 Medco Company uses special journals to record...

Question 13

Subsidiary ledgers do all of the following except:

Accepted Answer

A) Remove excessive detail from the general ledger. 
B) Provide up-to-date information on customer or other specific account balances. 
C) Aid in error identification for individual accounts. 
D) Help with division of labor (recordkeeping tasks). 
E) Eliminate the need for individual postings to the customer or supplier accounts. 
A) Remove excessive detail from the general ledger. 
B) Provide up-to-date information on customer or other specific account balances. 
C) Aid in error identification for individual accounts. 
D) Help with division of labor (recordkeeping tasks). 
E) Eliminate the need for individual postings to the customer or supplier accounts.

Question 14

_____________________ are systems that interpret,transform,and summarize information for use in analysis and reporting.

Accepted Answer

Informatio

Question 15

The __________________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Accepted Answer

The answer of The __________________ principle requires that the benefits...

Question 16

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

Accepted Answer

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

Question 17

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Accepted Answer

The answer of _______________________ are links among computers giving different...

Question 18

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 19

The accounting principle that prescribes an accounting information system to report useful,understandable,timely,and pertinent information for effective decision-making is the:

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 20

Assume that a company uses a sales journal,a purchases journal,a cash receipts journal,a cash disbursements journal,and a general journal.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) Accounts receivable ledger. 
E) Cash disbursements journal. 
A) Sales journal. 
B) General journal. 
C) Cash receipts journal. 
D) Accounts receivable ledger. 
E) Cash disbursements journal.

Exam 7: Accounting Information Systems

Information processors:

The flexibility principle prescribes that an accounting information system conform with a company's activities,personnel,and structure and adapt to a company's unique characteristics.

Explain the purposes,types,and uses of special journals.

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

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

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

Information storage:

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

Subsidiary ledgers do all of the following except:

_____________________ are systems that interpret,transform,and summarize information for use in analysis and reporting.

The __________________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

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

_______________________ are links among computers giving different users and different computers access to common databases and programs.

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

The accounting principle that prescribes an accounting information system to report useful,understandable,timely,and pertinent information for effective decision-making is the:

Assume that a company uses a sales journal,a purchases journal,a cash receipts journal,a cash disbursements journal,and a general journal.A sales return for credit on account would be recorded in the:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

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 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

Time Value of Money B

Activity-Based Costing C

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