Question 1

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 2

Generally,all transactions are recorded in both a special journal and the general journal.

Accepted Answer

A) True 
 B)False

Question 3

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 4

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

Accepted Answer

A)  network 
B)  hardware 
C)  software 
D)  router 
A)  network 
B)  hardware 
C)  software 
D)  router

Question 5

Entry-level accounting software ________.

Accepted Answer

A)  can handle advanced processes and transactions 
B)  is an affordable system that is difficult to use 
C)  allows businesses to enter sales of services and merchandise inventory, record expenses, and produce financial statements 
D)  integrates all of a company's functions, departments, and data into a single system 
A)  can handle advanced processes and transactions 
B)  is an affordable system that is difficult to use 
C)  allows businesses to enter sales of services and merchandise inventory, record expenses, and produce financial statements 
D)  integrates all of a company's functions, departments, and data into a single system

Question 6

Every transaction recorded in the cash receipts 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 7

________ refers to purchasing software and data storage from a third party.

Accepted Answer

A)  Cloud computing 
B)  Resource planning 
C)  Networking 
D)  Entry-level software 
A)  Cloud computing 
B)  Resource planning 
C)  Networking 
D)  Entry-level software

Question 8

Describe the transactions recorded in the purchases journal.

Accepted Answer

The purchases journal is used

Question 9

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Accepted Answer

A)  general 
B)  purchases 
C)  cash payments 
D)  equipment 
A)  general 
B)  purchases 
C)  cash payments 
D)  equipment

Question 10

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single system.

Accepted Answer

A) True 
 B)False

Question 11

Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

Accepted Answer

A) True 
 B)False

Question 12

An accounting information system is said to have good control characteristics,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

Question 13

List and describe two features of an effective accounting information system.

Accepted Answer

The features of an effective accounting

Question 14

Describe the transactions recorded in the cash payments journal.

Accepted Answer

The cash payments jo

Question 15

After posting from the cash payments journal,the posting reference is printed in the general journal.

Accepted Answer

A) True 
 B)False

Question 16

On July 10,a hardware retailer purchased merchandise inventory on account for $1,800.The company plans to pay $1,600 the following week and the remaining amount the week after.Which of the following is the correct entry to record the July 10 transaction in a purchases journal? Assume a perpetual inventory system is used.

Accepted Answer

A)  $1,600 will be recorded in the Accounts Payable CR and Merchandise Inventory CR columns. 
B)  $3,400 will be recorded in the Accounts Payable DR and Merchandise Inventory DR columns. 
C)  $1,800 will be recorded in the Merchandise Inventory CR and Accounts Payable DR columns. 
D)  $1,800 will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns. 
A)  $1,600 will be recorded in the Accounts Payable CR and Merchandise Inventory CR columns. 
B)  $3,400 will be recorded in the Accounts Payable DR and Merchandise Inventory DR columns. 
C)  $1,800 will be recorded in the Merchandise Inventory CR and Accounts Payable DR columns. 
D)  $1,800 will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns.

Question 17

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

Accepted Answer

A)  Cost of Goods Sold DR 
B)  Purchases DR 
C)  Accounts Payable DR 
D)  Merchandise Inventory DR 
A)  Cost of Goods Sold DR 
B)  Purchases DR 
C)  Accounts Payable DR 
D)  Merchandise Inventory DR

Question 18

The purchases journal is a special journal that ________.

Accepted Answer

A)  has special columns for credits to merchandise inventory 
B)  is used to record all purchases of merchandise inventory 
C)  has a special column for debits to accounts payable 
D)  is used to record merchandise inventory, office supplies, and other assets purchased on account 
A)  has special columns for credits to merchandise inventory 
B)  is used to record all purchases of merchandise inventory 
C)  has a special column for debits to accounts payable 
D)  is used to record merchandise inventory, office supplies, and other assets purchased on account

Question 19

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an entry-level software package for accounting information systems?

Accepted Answer

A)  Microsoft Word 
B)  QuickBooks 
C)  Cloud Computing 
D)  Oracle® 
A)  Microsoft Word 
B)  QuickBooks 
C)  Cloud Computing 
D)  Oracle®

Exam 7: Accounting Information Systems

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

Generally,all transactions are recorded in both a special journal and the general journal.

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

Entry-level accounting software ________.

Every transaction recorded in the cash receipts journal includes a ________.

________ refers to purchasing software and data storage from a third party.

Describe the transactions recorded in the purchases journal.

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single system.

Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

An accounting information system is said to have good control characteristics,if it ________.

List and describe two features of an effective accounting information system.

Describe the transactions recorded in the cash payments journal.

After posting from the cash payments journal,the posting reference is printed in the general journal.

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

The purchases journal is a special journal that ________.

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Which of the following is an entry-level software package for accounting information systems?

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