Question 1

Which of the following will be recorded in the general journal when using a manual accounting information system?

Accepted Answer

A)  adjusting and closing entries 
B)  payment of accounts payable 
C)  purchase of merchandise inventory on account 
D)  sale of merchandise inventory on account 
A)  adjusting and closing entries 
B)  payment of accounts payable 
C)  purchase of merchandise inventory on account 
D)  sale of merchandise inventory on account A

Question 2

Golden Company had the following transactions:
 $$\begin{array} { | l | l | } 
\hline \text { Oct } 1 & \begin{array} { l } 
\text { Purchased merchandise inventory on account with credit terms of } 1 / 10 , \mathrm { n } / 30 \text { from } \
\text { Rice Co., } \$ 2,100 .
\end{array} \
\hline 10 & \text { Purchased office supplies on account from MET Co., } \$ 250 . \text { Terms were } \mathrm { n } / \mathrm { EOM } \
\hline 26 & \begin{array} { l } 
\text { Purchased furniture on account with credit terms of } 2 / 10 , \mathrm { n } / 60 \text { from Ocean Co. } \
\$ 1,700 .
\end{array} \
\hline & \
\hline
\end{array}$$ Use the following purchases journal to record the preceding transactions.The company uses a perpetual inventory system.

Accepted Answer

The answer of Golden Company had the following transactions:
 \[\begin{array}...

Question 3

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)  accommodates 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)  accommodates changes in the business over time C

Question 4

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 5

Two popular entry-level software packages for accounting information systems are Quickbooks and Excel.

Accepted Answer

A) True 
 B)False

Question 6

Hardware is electronic equipment that includes computers,monitors,printers,and the network that connects them.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In a typical computerized accounting information system,________.

Accepted Answer

A)  transactions must be recorded in debit and credit format 
B)  the software automatically knows to record a debit or a credit 
C)  transactions are posted manually 
D)  spreadsheets must be used to produce financial statements 
A)  transactions must be recorded in debit and credit format 
B)  the software automatically knows to record a debit or a credit 
C)  transactions are posted manually 
D)  spreadsheets must be used to produce financial statements

Question 9

When using Quickbooks,the Vendors tab is used to record a bill that has been received.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following serves as the "journal of last resort?"

Accepted Answer

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

Question 11

A general ledger is an accounting journal designed to record one specific type of transaction.

Accepted Answer

A) True 
 B)False

Question 12

In the cash receipts journal,the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 13

When using Quickbooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

An automobile parts retailer purchases merchandise inventory on account.When using a manual accounting information system,this transaction is recorded in the ________.

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 15

List and briefly discuss the three basic components of an accounting information system.

Accepted Answer

1.Source documents and input devices: So

Question 16

Ocean Company sells a product for $500 on account to Great Atlantic Sales.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 17

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Accepted Answer

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

Question 18

Match each term to its definition.
-Positive cost/benefit relationship

Accepted Answer

A) Can accommodate changes in the business over time. 
B) Provides information that will improve decision making and reduce uncertainty. 
C) Benefits received outweigh the cost of the system. 
D) Works smoothly with the business's employees and organization structure. 
E) Provides safeguards for a business's assets and reduces the likelihood of fraud and errors. 
A) Can accommodate changes in the business over time. 
B) Provides information that will improve decision making and reduce uncertainty. 
C) Benefits received outweigh the cost of the system. 
D) Works smoothly with the business's employees and organization structure. 
E) Provides safeguards for a business's assets and reduces the likelihood of fraud and errors.

Question 19

A computerized system uses software to process transactions.Thus employees are no longer required to manually journalize and post transactions to the accounts.

Accepted Answer

A) True 
 B)False

Question 20

St.Petersburg Company 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

Exam 7: Accounting Information Systems

Which of the following will be recorded in the general journal when using a manual accounting information system?

An accounting information system is said to be relevant,if it ________.

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

Two popular entry-level software packages for accounting information systems are Quickbooks and Excel.

Hardware is electronic equipment that includes computers,monitors,printers,and the network that connects them.

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

In a typical computerized accounting information system,________.

When using Quickbooks,the Vendors tab is used to record a bill that has been received.

Which of the following serves as the "journal of last resort?"

A general ledger is an accounting journal designed to record one specific type of transaction.

In the cash receipts journal,the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

When using Quickbooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

An automobile parts retailer purchases merchandise inventory on account.When using a manual accounting information system,this transaction is recorded in the ________.

List and briefly discuss the three basic components of an accounting information system.

Ocean Company sells a product for $500 on account to Great Atlantic Sales.This transaction will be recorded in the ________.

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Match each term to its definition. -Positive cost/benefit relationship

A computerized system uses software to process transactions.Thus employees are no longer required to manually journalize and post transactions to the accounts.

St.Petersburg Company makes a $1,200 purchase of merchandise inventory for cash.This transaction will be recorded in the ________.

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