Question 1

A cash payments journal is a special journal used to record:

Accepted Answer

A) only the cash payments by currency. 
B) the net of the cash payments and cash receipts by currency. 
C) cash payments by check and currency. 
D) the net of cash payments and cash receipts by check and currency. 
A) only the cash payments by currency. 
B) the net of the cash payments and cash receipts by currency. 
C) cash payments by check and currency. 
D) the net of cash payments and cash receipts by check and currency.

Question 2

Cash purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 3

The main computer where data is stored, which can be accessed from many different computers, is known as software.

Accepted Answer

A) True 
 B)False

Question 4

Deal Corporation sells a product for $500 cash to Liza. This transaction will be recorded in the:

Accepted Answer

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

Question 5

Adjusting entries are recorded in the ________.

Accepted Answer

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

Question 6

Tangent Corporation makes a $1,200 purchase of merchandise inventory for cash. This transaction will be recorded in the:

Accepted Answer

A) cash payments journal. 
B) general journal. 
C) cash receipts journal. 
D) purchase journal. 
A) cash payments journal. 
B) general journal. 
C) cash receipts journal. 
D) purchase journal.

Question 7

Every transaction recorded in the cash receipt journal includes a:

Accepted Answer

A) credit to cash. 
B) debit to accounts receivable. 
C) credit to accounts receivable. 
D) debit to cash. 
A) credit to cash. 
B) debit to accounts receivable. 
C) credit to accounts receivable. 
D) debit to cash.

Question 8

Which of the following accounting information system activities can be classified under payroll business transactions?

Accepted Answer

A) approval of new employees 
B) receipt of customer payment 
C) processing of vendor invoice 
D) payment for goods or services 
A) approval of new employees 
B) receipt of customer payment 
C) processing of vendor invoice 
D) payment for goods or services

Question 9

Which of the following transactions is recorded in the "Invoices" function of QuickBooks?

Accepted Answer

A) A firm paying $2,500 electricity bill 
B) A firm writing down the value of an impaired asset 
C) A firm making a sale on account to a customer 
D) A firm making accounting adjustments to depreciation expense 
A) A firm paying $2,500 electricity bill 
B) A firm writing down the value of an impaired asset 
C) A firm making a sale on account to a customer 
D) A firm making accounting adjustments to depreciation expense

Question 10

An accounting information system has three basic components: source documents and input devices, processing and storage, and outputs.

Accepted Answer

A) True 
 B)False

Question 11

Examples of source documents, in an accounting information system, include the statement of cash flows and sales journal.

Accepted Answer

A) True 
 B)False

Question 12

If there is no cash involved in a particular business transaction then the transaction should be recorded in:

Accepted Answer

A) either cash receipts journal or general journal. 
B) either sales journal or purchases journal. 
C) only general journal. 
D) sales journal, purchases journal, or general journal. 
A) either cash receipts journal or general journal. 
B) either sales journal or purchases journal. 
C) only general journal. 
D) sales journal, purchases journal, or general journal.

Question 13

An automobile company purchases spark plugs, on cash, 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 14

After posting entries in a sales journal to the general ledger, the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 15

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Accepted Answer

A) True 
 B)False

Question 16

Posting from the cash payments journal is similar to posting from the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 17

In a computerized accounting information system, all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Accepted Answer

A) True 
 B)False

Question 18

An accounting information system is said to be relevant if it:

Accepted Answer

A) works smoothly with the business's employees and organizational structure. 
B) safeguards a business's assets and reduces the likelihood of fraud and errors. 
C) provides information that will improve decision making and reduce uncertainty. 
D) can accommodate changes in the business over time. 
A) works smoothly with the business's employees and organizational structure. 
B) safeguards a business's assets and reduces the likelihood of fraud and errors. 
C) provides information that will improve decision making and reduce uncertainty. 
D) can accommodate changes in the business over time.

Question 19

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

Accepted Answer

A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. 
B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. 
C) Though the sales journal is posted monthly to the subsidiary ledger, it is a reliable record of the amount receivable from each customer. 
D) Under a perpetual inventory system, the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column. 
A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. 
B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. 
C) Though the sales journal is posted monthly to the subsidiary ledger, it is a reliable record of the amount receivable from each customer. 
D) Under a perpetual inventory system, the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.

Question 20

Which of the following will be recorded in the Other Accounts CR column of the cash receipts journal?

Accepted Answer

A) cash sales 
B) receipt of interest revenue 
C) receipt of accounts receivable 
D) sales discounts 
A) cash sales 
B) receipt of interest revenue 
C) receipt of accounts receivable 
D) sales discounts

Exam 7: Accounting Information Systems

A cash payments journal is a special journal used to record:

Cash purchases are recorded in the purchases journal.

The main computer where data is stored, which can be accessed from many different computers, is known as software.

Deal Corporation sells a product for $500 cash to Liza. This transaction will be recorded in the:

Adjusting entries are recorded in the ________.

Tangent Corporation makes a $1,200 purchase of merchandise inventory for cash. This transaction will be recorded in the:

Every transaction recorded in the cash receipt journal includes a:

Which of the following accounting information system activities can be classified under payroll business transactions?

Which of the following transactions is recorded in the "Invoices" function of QuickBooks?

An accounting information system has three basic components: source documents and input devices, processing and storage, and outputs.

Examples of source documents, in an accounting information system, include the statement of cash flows and sales journal.

If there is no cash involved in a particular business transaction then the transaction should be recorded in:

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

After posting entries in a sales journal to the general ledger, the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Posting from the cash payments journal is similar to posting from the cash receipts journal.

In a computerized accounting information system, all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

An accounting information system is said to be relevant if it:

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

Which of the following will be recorded in the Other Accounts CR column of the cash receipts 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