Question 1

Which of the following are the debit columns of a typical cash payments journal?

Accepted Answer

A) Merchandise Inventory column and Cash column 
B) Other Accounts column and Accounts Payable column 
C) Merchandise Inventory column and Accounts Payable column 
D) Other Accounts column and Cash column 
A) Merchandise Inventory column and Cash column 
B) Other Accounts column and Accounts Payable column 
C) Merchandise Inventory column and Accounts Payable column 
D) Other Accounts column and Cash column

Question 2

Which of the following is an example of hardware?

Accepted Answer

A) monitor 
B) Microsoft Office 
C) ERP 
D) QuickBooks 
A) monitor 
B) Microsoft Office 
C) ERP 
D) QuickBooks

Question 3

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

Accepted Answer

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

Question 4

Which of the following is true of the general journal?

Accepted Answer

A) All transactions recorded in one of the special journals are also recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal. 
A) All transactions recorded in one of the special journals are also recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal.

Question 5

Unlike the sales journal, entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 6

Cash disbursement journals are also known as:

Accepted Answer

A) sales journals. 
B) purchases journals. 
C) cash receipt journals. 
D) cash payments journals. 
A) sales journals. 
B) purchases journals. 
C) cash receipt journals. 
D) cash payments journals.

Question 7

Which of the following is true of the comparison between a manual and a computerized accounting information system?

Accepted Answer

A) In both manual and computerized systems, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint. 
B) In a computerized system, the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system, data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system, data are stored on a main computer called a server. 
D) In both manual and computerized systems, processing data includes manually journalizing transactions and posting to the accounts. 
A) In both manual and computerized systems, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint. 
B) In a computerized system, the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system, data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system, data are stored on a main computer called a server. 
D) In both manual and computerized systems, processing data includes manually journalizing transactions and posting to the accounts.

Question 8

Depreciation of fixed assets is recorded in a:

Accepted Answer

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

Question 9

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

Accepted Answer

A) Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger. 
B) The postings of accounts payable are credits and increase the balance in the individual accounts payable account. 
C) After posting, a check mark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger. 
D) At the end of the month, each column is totaled and the totals, including the Other Accounts DR column, are posted to the specific general ledger accounts. 
A) Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger. 
B) The postings of accounts payable are credits and increase the balance in the individual accounts payable account. 
C) After posting, a check mark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger. 
D) At the end of the month, each column is totaled and the totals, including the Other Accounts DR column, are posted to the specific general ledger accounts.

Question 10

An effective accounting information system with adequate internal controls can safeguard a business's assets and reduce the likelihood of fraud and errors.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of outputs in an accounting information system?

Accepted Answer

A) In a manual system, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint. 
B) In a computerized system, the software can generate reports instantaneously that can never be manipulated. 
C) Examples of outputs in an accounting information system include purchase invoices, bank checks, and sales invoices. 
D) Since the output in an accounting information system are audited and error-free, it provides the evidence and data for accounting transactions. 
A) In a manual system, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint. 
B) In a computerized system, the software can generate reports instantaneously that can never be manipulated. 
C) Examples of outputs in an accounting information system include purchase invoices, bank checks, and sales invoices. 
D) Since the output in an accounting information system are audited and error-free, it provides the evidence and data for accounting transactions.

Question 12

In a networked system, the server stores the program and the data.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true of source documents in an accounting information system?

Accepted Answer

A) All journal entries can be considered as source documents in an accounting information system. 
B) Source documents provide control and reliability in an accounting information system. 
C) A manual document cannot be considered as a source document in an accounting information system. 
D) In a manual accounting information system, source documents refer to financial statements. 
A) All journal entries can be considered as source documents in an accounting information system. 
B) Source documents provide control and reliability in an accounting information system. 
C) A manual document cannot be considered as a source document in an accounting information system. 
D) In a manual accounting information system, source documents refer to financial statements.

Question 14

A computerized system uses software to process transactions and it allows businesses to process transactions without actually requiring employees to journalize and post to the accounts.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of a cash receipts journal?

Accepted Answer

A) In a cash receipts journal, cash sales are recorded in the Accounts Receivable CR column and the Cash DR column. 
B) In a cash receipts journal, collections on account are recorded in the Accounts Receivable DR column and the Cash DR column. 
C) It ignores the miscellaneous cash receipt transactions. 
D) In a cash receipts journal, the sales for cash will have entries in the Sales Revenue CR column. 
A) In a cash receipts journal, cash sales are recorded in the Accounts Receivable CR column and the Cash DR column. 
B) In a cash receipts journal, collections on account are recorded in the Accounts Receivable DR column and the Cash DR column. 
C) It ignores the miscellaneous cash receipt transactions. 
D) In a cash receipts journal, the sales for cash will have entries in the Sales Revenue CR column.

Question 16

A subsidiary ledger is a record of accounts that provides supporting details on individual balances, the total of which appears in a general ledger account.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of a sales journal prepared under the perpetual inventory system?

Accepted Answer

A) It includes a Cost of Goods Sold DR, Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal are also entered in the general journal. 
D) It cannot be used with a perpetual inventory system. 
A) It includes a Cost of Goods Sold DR, Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal are also entered in the general journal. 
D) It cannot be used with a perpetual inventory system.

Exam 7: Accounting Information Systems

Which of the following are the debit columns of a typical cash payments journal?

Which of the following is an example of hardware?

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

Which of the following is true of the general journal?

Unlike the sales journal, entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Cash disbursement journals are also known as:

Which of the following is true of the comparison between a manual and a computerized accounting information system?

Depreciation of fixed assets is recorded in a:

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

An effective accounting information system with adequate internal controls can safeguard a business's assets and reduce the likelihood of fraud and errors.

Which of the following is true of outputs in an accounting information system?

In a networked system, the server stores the program and the data.

Which of the following is true of source documents in an accounting information system?

A computerized system uses software to process transactions and it allows businesses to process transactions without actually requiring employees to journalize and post to the accounts.

Which of the following is true of a cash receipts journal?

A subsidiary ledger is a record of accounts that provides supporting details on individual balances, the total of which appears in a general ledger account.

Which of the following is true of a sales journal prepared under the perpetual inventory system?

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