Question 1

The cash disbursements journal is also called the check register.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 also are 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 also are entered in the general journal. 
D)  It cannot be used with a perpetual inventory system.

Question 4

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

Accepted Answer

A) True 
 B)False

Question 5

The main computer where data is stored,which can be accessed from many different computers is known as a(n)________.

Accepted Answer

A)  accounting information system 
B)  RAM 
C)  server 
D)  router 
A)  accounting information system 
B)  RAM 
C)  server 
D)  router

Question 6

Which of the following is an example of hardware?

Accepted Answer

A)  monitor 
B)  malware 
C)  firewall 
D)  operating system 
A)  monitor 
B)  malware 
C)  firewall 
D)  operating system

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 cannot be formatted. 
C)  In a manual system, data are contained in paper documents, which 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 cannot be formatted. 
C)  In a manual system, data are contained in paper documents, which 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

Which of the following is an example of a source document in a computerized accounting information system?

Accepted Answer

A)  purchase invoices 
B)  balance sheet 
C)  cash payments journal 
D)  income statement 
A)  purchase invoices 
B)  balance sheet 
C)  cash payments journal 
D)  income statement

Question 9

Gold Company had the following transactions:
   Use the following sales journal to record the preceding transactions.The company uses the perpetual inventory system.

Accepted Answer

The answer of Gold Company had the following transactions:
 ...

Question 10

In a purchases journal,the total of the ________ column is not posted to the general ledger.

Accepted Answer

A)  Merchandise Inventory DR 
B)  Other Accounts DR, Amount 
C)  Accounts Payable CR 
D)  Office Supplies DR 
A)  Merchandise Inventory DR 
B)  Other Accounts DR, Amount 
C)  Accounts Payable CR 
D)  Office Supplies DR

Question 11

Cash disbursement journals also are known as ________.

Accepted Answer

A)  sales journals 
B)  purchases journals 
C)  cash receipts journals 
D)  cash payments journals 
A)  sales journals 
B)  purchases journals 
C)  cash receipts journals 
D)  cash payments journals

Question 12

In a manual accounting information system,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 13

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Accepted Answer

Enterprise resource planning systems int

Question 14

State the purpose of a subsidiary ledger? What is included in the accounts receivable subsidiary ledger?

Accepted Answer

A subsidiary ledger is a record of accou

Question 15

Match each term to its definition.
-Control

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 16

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

Accepted Answer

A) True 
 B)False

Question 17

Match each term to its definition.
-Relevance

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 18

Which of the following is TRUE of posting entries from a cash payments journal?

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 the payment of accounts payable, 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 the payment of accounts payable, 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 19

Which of the following is TRUE of an effective accounting information system?

Accepted Answer

A)  It has little influence in improving a company's internal control activities. 
B)  The cost of using an accounting information system is the same for both small and large businesses. 
C)  A compatible accounting information system works smoothly with the business's employees and organizational structure. 
D)  Large private companies prefer a manual accounting information system since their financial statements are not audited. 
A)  It has little influence in improving a company's internal control activities. 
B)  The cost of using an accounting information system is the same for both small and large businesses. 
C)  A compatible accounting information system works smoothly with the business's employees and organizational structure. 
D)  Large private companies prefer a manual accounting information system since their financial statements are not audited.

Question 20

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

Exam 7: Accounting Information Systems

The cash disbursements journal is also called the check register.

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

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

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

The main computer where data is stored,which can be accessed from many different computers is known as a(n)________.

Which of the following is an example of hardware?

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

Which of the following is an example of a source document in a computerized accounting information system?

Gold Company had the following transactions: Use the following sales journal to record the preceding transactions.The company uses the perpetual inventory system.

In a purchases journal,the total of the ________ column is not posted to the general ledger.

Cash disbursement journals also are known as ________.

In a manual accounting information system,cash purchases are generally recorded in the ________.

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

State the purpose of a subsidiary ledger? What is included in the accounts receivable subsidiary ledger?

Match each term to its definition. -Control

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

Match each term to its definition. -Relevance

Which of the following is TRUE of posting entries from a cash payments journal?

Which of the following is TRUE of an effective accounting information system?

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.

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