Question 1

The purchases journal is identical under both the periodic and the perpetual inventory systems.

Accepted Answer

A) True 
 B)False

Question 2

When the sales journal's column for accounts receivable and sales is totaled at the end of the month,its total is:

Accepted Answer

A) Debited to Sales and credited to Accounts Receivable. 
B) Debited to Accounts Receivable and credited to Cash. 
C) Debited to Cash and credited to Accounts Receivable. 
D) Debited to Accounts Receivable and credited to Sales. 
E) Debited to Cash and credited to Sales. 
A) Debited to Sales and credited to Accounts Receivable. 
B) Debited to Accounts Receivable and credited to Cash. 
C) Debited to Cash and credited to Accounts Receivable. 
D) Debited to Accounts Receivable and credited to Sales. 
E) Debited to Cash and credited to Sales.

Question 3

All of the following statements regarding internal control procedures are true except:

Accepted Answer

A) Internal control procedures are designed to ensure reliable financial reports. 
B) Internal control procedures are designed to safeguards company assets. 
C) Internal control procedures direct operations toward common goals. 
D) Internal control procedures include methods to achieve compliance with laws and regulation. 
E) Internal control procedures are not affected by the cost-benefit principle. 
A) Internal control procedures are designed to ensure reliable financial reports. 
B) Internal control procedures are designed to safeguards company assets. 
C) Internal control procedures direct operations toward common goals. 
D) Internal control procedures include methods to achieve compliance with laws and regulation. 
E) Internal control procedures are not affected by the cost-benefit principle.

Question 4

______________________ capture information from source documents and enable its transfer to the system's information processing component.

Accepted Answer

The answer of ______________________ capture information from source documents and...

Question 5

Argon Sales uses special journals to record business transactions.Argon sells construction equipment.Argon completed the following transactions a through j.Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of Argon Sales uses special journals to record...

Question 6

A sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Question 7

The accounts receivable ledger:

Accepted Answer

A) Is for storing transaction data for customers. 
B) Is for storing transaction data for individual customers. 
C) Is for storing transaction data for individual creditors. 
D) Is for storing transaction date for creditors. 
E) Is also the controlling account. 
A) Is for storing transaction data for customers. 
B) Is for storing transaction data for individual customers. 
C) Is for storing transaction data for individual creditors. 
D) Is for storing transaction date for creditors. 
E) Is also the controlling account.

Question 8

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Accepted Answer

A) True 
 B)False

Question 9

The Sun Company completed the following sales and cash receipts transactions during the first week of December.The Sun Company uses the perpetual inventory system.
   a.Use the sales journal and the cash receipts journal to record these transactions.
b.Prepare a schedule of accounts receivable.There was no accounts receivable balance at December 1.

Accepted Answer

The answer of The Sun Company completed the following sales...

Question 10

The five fundamental principles of accounting information systems are:

Accepted Answer

A) Control, accountability, relevance, compatibility, and flexibility. 
B) Historical cost, relevance, compatibility, flexibility, and cost-benefit. 
C) Control, relevance, compatibility, flexibility, and safety. 
D) Control, relevance, compatibility, timeliness, and cost-benefit. 
E) Control, relevance, compatibility, flexibility, and cost-benefit. 
A) Control, accountability, relevance, compatibility, and flexibility. 
B) Historical cost, relevance, compatibility, flexibility, and cost-benefit. 
C) Control, relevance, compatibility, flexibility, and safety. 
D) Control, relevance, compatibility, timeliness, and cost-benefit. 
E) Control, relevance, compatibility, flexibility, and cost-benefit.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Kim Jordan,founder of New Belgium Brewing Company,knew that accounting systems were important for success.Explain how Kim used an accounting system to assess business operations.

Accepted Answer

Kim set up an accounting system to measu

Question 14

Most transactions for merchandising businesses fall into four groups:
 sales,purchases,cash receipts,and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A company had average total assets of $982,450 and net income of $190,700,and reports various segment information.Segment A had average total assets of $437,800 and segment operating income of $98,230.Segment B had average assets of $151,200 and segment operating income of $16,190.Calculate the segment return on assets for Segment B.

Accepted Answer

A) 19.4%. 
B) 22.4%. 
C) 26.1%. 
D) 10.7%. 
E) 20.2%. 
A) 19.4%. 
B) 22.4%. 
C) 26.1%. 
D) 10.7%. 
E) 20.2%.

Question 17

The following information is available for some of Kalo's segments (all amounts are in millions):
   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

@#IMG-DLM& b.Latin America is

Question 18

To check for accuracy after posting:
 first a trial balance is completed,then,the subsidiary ledgers are tested by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Question 19

The Sun Company completed the following sales and cash receipts transactions during the first week of December.The Sun Company uses the periodic inventory system.
Dec 1 Sold merchandise for $6,700 on credit to the Two Rivers Co.,terms 2/10,n/30.
Invoice no.1455.Cost of the merchandise sold is $3,600.
Dec 1 Sold merchandise for $3,400 on credit to the Berlin Co.,terms 2/10,n/30.Invoice no.1456.Cost of the merchandise sold is $1,800.
Dec 2 Sold merchandise for $590 for cash to the Ellison Co.Invoice no.1457.Cost of the merchandise sold is $300.
Dec 3 Borrowed $10,000 from Custer Bank on a long-term note payable.
Dec 3 Sold merchandise for $7,200 on credit to the Amherst Co.,terms 2/10,n/30.Invoice no.1458.Cost of the merchandise sold is $4,000.
Dec 5 Received the amount due from the Two Rivers Co.from the sale on December 1.
Dec 6 Sold merchandise on credit for $950 to the Waupaca Co.,terms 2/10,n/30.Invoice No.1459.
Dec 6 Received the amount due from the Berlin Co.from the sale on December 1.
a.Use the sales journal and the cash receipts journal to record these transactions.
b.Prepare a schedule of accounts receivable.There was no accounts receivable balance at December 1.

Accepted Answer

The answer of The Sun Company completed the following sales...

Question 20

A company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.A perpetual inventory system is used.The following transactions were completed by the company during the current month of October:
   Record these transactions in the appropriate journal shown below.

Accepted Answer

The answer of A company uses a sales journal,purchases journal,cash...

Exam 7: Accounting Information Systems

The purchases journal is identical under both the periodic and the perpetual inventory systems.

When the sales journal's column for accounts receivable and sales is totaled at the end of the month,its total is:

All of the following statements regarding internal control procedures are true except:

______________________ capture information from source documents and enable its transfer to the system's information processing component.

Argon Sales uses special journals to record business transactions.Argon sells construction equipment.Argon completed the following transactions a through j.Identify the journal in which each transaction should be recorded.

A sales journal is used to record cash sales.

The accounts receivable ledger:

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system outweigh the costs of that activity.

The five fundamental principles of accounting information systems are:

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

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.

Kim Jordan,founder of New Belgium Brewing Company,knew that accounting systems were important for success.Explain how Kim used an accounting system to assess business operations.

Most transactions for merchandising businesses fall into four groups: sales,purchases,cash receipts,and cash disbursements.

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

The following information is available for some of Kalo's segments (all amounts are in millions): 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?

To check for accuracy after posting: first a trial balance is completed,then,the subsidiary ledgers are tested by preparing a schedule of the controlling account.

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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