Question 1

BM Corporation makes a sale for cash to Roger. In which of the following functions of QuickBooks will this transaction be recorded?

Accepted Answer

A) Pay Bills 
B) Enter Bills 
C) Invoices 
D) Receive Payments 
A) Pay Bills 
B) Enter Bills 
C) Invoices 
D) Receive Payments

Question 2

A set of programs or instructions that drives the computer to perform the work desired is known as a:

Accepted Answer

A) network. 
B) hardware. 
C) software. 
D) routing. 
A) network. 
B) hardware. 
C) software. 
D) routing.

Question 3

Which of the following are the two basic components of a computerized accounting information system?

Accepted Answer

A) sales journal and purchase journal 
B) hardware and software 
C) cash payment journal and cash receipt journal 
D) network and cloud computing 
A) sales journal and purchase journal 
B) hardware and software 
C) cash payment journal and cash receipt journal 
D) network and cloud computing

Question 4

Which of the following is an example of a storage device in an accounting information system?

Accepted Answer

A) monitor 
B) network 
C) printer 
D) server 
A) monitor 
B) network 
C) printer 
D) server

Question 5

Which of the following is true of data processing and storage in a computerized information system?

Accepted Answer

A) In a computerized accounting information system, processing includes manually journalizing transactions and posting to the accounts. 
B) In a computerized accounting information system, there will be a main centralized computer where data is stored, which cannot be accessed from any other computers. 
C) In both manual and computerized systems, all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses. 
D) In a computerized accounting information system, companies need to spend large amounts of cash to ensure that their data and information are secure. 
A) In a computerized accounting information system, processing includes manually journalizing transactions and posting to the accounts. 
B) In a computerized accounting information system, there will be a main centralized computer where data is stored, which cannot be accessed from any other computers. 
C) In both manual and computerized systems, all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses. 
D) In a computerized accounting information system, companies need to spend large amounts of cash to ensure that their data and information are secure.

Question 6

An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

Accepted Answer

A) purchases journal 
B) general journal 
C) cash payments journal 
D) sales journal 
A) purchases journal 
B) general journal 
C) cash payments journal 
D) sales journal

Question 7

In an accounting information system, outputs are the reports used for decision making, including the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

Accepted Answer

A) True 
 B)False

Question 9

The purchases journal is a special journal used to record:

Accepted Answer

A) cash receipts, interest rate payments, and purchases. 
B) credit sales of assets that occur infrequently such as buildings, property, and equipment. 
C) credit sales. 
D) merchandise inventory, office supplies, and other assets purchased on account. 
A) cash receipts, interest rate payments, and purchases. 
B) credit sales of assets that occur infrequently such as buildings, property, and equipment. 
C) credit sales. 
D) merchandise inventory, office supplies, and other assets purchased on account.

Question 10

Cash purchases are generally recorded in the:

Accepted Answer

A) sales journal. 
B) cash receipts journal. 
C) cash payments journal. 
D) purchases journal. 
A) sales journal. 
B) cash receipts journal. 
C) cash payments journal. 
D) purchases journal.

Question 11

Which of the following is an output device in an accounting information system?

Accepted Answer

A) keyboard 
B) internet protocol 
C) printer 
D) mouse 
A) keyboard 
B) internet protocol 
C) printer 
D) mouse

Question 12

Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

Accepted Answer

A) Accounts Receivable DR, Sales Revenue CR column. 
B) Cost of Goods Sold DR, Merchandise Inventory CR column. 
C) Merchandise Inventory DR, Cost of Goods Sold CR column. 
D) Sales Revenue DR, Accounts Receivable CR column. 
A) Accounts Receivable DR, Sales Revenue CR column. 
B) Cost of Goods Sold DR, Merchandise Inventory CR column. 
C) Merchandise Inventory DR, Cost of Goods Sold CR column. 
D) Sales Revenue DR, Accounts Receivable CR column.

Question 13

Credit purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of an accounting software?

Accepted Answer

A) It is electronic equipment. 
B) It can never save any transaction data. 
C) It can read, edit, and store transaction data. 
D) It cannot be customized. 
A) It is electronic equipment. 
B) It can never save any transaction data. 
C) It can read, edit, and store transaction data. 
D) It cannot be customized.

Question 15

Sales on account are recorded in a cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 16

For a company to safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system:

Accepted Answer

A) should be manual. 
B) must be flexible to accommodate changes in a business over time. 
C) should work smoothly with the business's employees. 
D) must provide adequate controls of a business's assets and data. 
A) should be manual. 
B) must be flexible to accommodate changes in a business over time. 
C) should work smoothly with the business's employees. 
D) must provide adequate controls of a business's assets and data.

Question 17

On July 4, a hardware manufacturing firm purchased inventory on account for $1,300. The company plans to pay $700 in the next week and the remaining in the week after. Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

Accepted Answer

A) $650 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column. 
B) $2,000 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column. 
C) $1,300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column. 
D) $1,300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column. 
A) $650 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column. 
B) $2,000 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column. 
C) $1,300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column. 
D) $1,300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.

Question 18

Which of the following is true of posting entries from a purchases journal to the general ledger?

Accepted Answer

A) The posting references are not mentioned in the subsidiary ledger. 
B) The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger. 
C) The amounts in the Other Accounts DR column are posted individually to the specific accounts. 
D) It is done on a daily basis for all the accounts. 
A) The posting references are not mentioned in the subsidiary ledger. 
B) The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger. 
C) The amounts in the Other Accounts DR column are posted individually to the specific accounts. 
D) It is done on a daily basis for all the accounts.

Question 19

Which of the following is not included in the purchases journal?

Accepted Answer

A) purchases of Merchandise Inventory for cash 
B) purchase of Merchandise Inventory on account 
C) purchase of Office Supplies on credit 
D) purchase of Capital Assets on account 
A) purchases of Merchandise Inventory for cash 
B) purchase of Merchandise Inventory on account 
C) purchase of Office Supplies on credit 
D) purchase of Capital Assets on account

Question 20

When using a manual accounting information system, which of the following will be recorded in the general journal?

Accepted Answer

A) depreciation on equipment 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) receipt of cash from a debtor 
A) depreciation on equipment 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) receipt of cash from a debtor

Exam 7: Accounting Information Systems

BM Corporation makes a sale for cash to Roger. In which of the following functions of QuickBooks will this transaction be recorded?

A set of programs or instructions that drives the computer to perform the work desired is known as a:

Which of the following are the two basic components of a computerized accounting information system?

Which of the following is an example of a storage device in an accounting information system?

Which of the following is true of data processing and storage in a computerized information system?

An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

In an accounting information system, outputs are the reports used for decision making, including the financial statements.

When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

The purchases journal is a special journal used to record:

Cash purchases are generally recorded in the:

Which of the following is an output device in an accounting information system?

Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

Credit purchases are recorded in the purchases journal.

Which of the following is true of an accounting software?

Sales on account are recorded in a cash receipts journal.

For a company to safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system:

Which of the following is true of posting entries from a purchases journal to the general ledger?

Which of the following is not included in the purchases journal?

When using a manual accounting information system, which of the following will be recorded in the general journal?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters