Question 1

Which of the following is TRUE of a network?

Accepted Answer

A)  It connects a computer's hardware to the software. 
B)  It does not link computers. 
C)  It is the same as software. 
D)  It allows different computers to share the same information. 
A)  It connects a computer's hardware to the software. 
B)  It does not link computers. 
C)  It is the same as software. 
D)  It allows different computers to share the same information.

Question 2

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 3

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

Accepted Answer

A) True 
 B)False

Question 4

Bronze Company had the following transactions:
 $$\begin{array} { | l | l | } 
\hline \text { Jun. } 6 & \text { Sold merchandise inventory for cash, } \$ 2,200 \text {. Cost of goods, } \$ 1,400 . \
\hline 9& \text { Collected interest revenue of } \$ 2,350 . \
\hline15  & \text { Received cash from Jim Rhodes, } \$ 1,100 \text {, on account. There was no discount. } \
\hline 27 & \begin{array} { l } 
\text { Received } \$ 5,400 \text { from Steve McNeil representing } \$ 5,292 \text { he owed plus } \$ 108 \text { sales } \
\text { discount forfeited. }
\end{array} \
\hline
\end{array}$$ Use the following cash receipts journal to record the preceding transactions.The company uses the perpetual inventory system.

Accepted Answer

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

Question 5

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

Accepted Answer

A)  statement of cash flows 
B)  balance sheet 
C)  bank checks 
D)  general ledger 
A)  statement of cash flows 
B)  balance sheet 
C)  bank checks 
D)  general ledger

Question 6

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Accepted Answer

A)  It is inexpensive to implement. 
B)  It provides financial benefits only to small companies. 
C)  It replaces separate software systems, such as sales and payroll. 
D)  Its implementation requires a small commitment of time and people. 
A)  It is inexpensive to implement. 
B)  It provides financial benefits only to small companies. 
C)  It replaces separate software systems, such as sales and payroll. 
D)  Its implementation requires a small commitment of time and people.

Question 7

The collection of time records for company employees is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following transactions is recorded in the purchases journal?

Accepted Answer

A)  purchase of furniture on account 
B)  cash purchase of merchandise inventory 
C)  sale of merchandise inventory on account 
D)  cash sales of merchandise inventory 
A)  purchase of furniture on account 
B)  cash purchase of merchandise inventory 
C)  sale of merchandise inventory on account 
D)  cash sales of merchandise inventory

Question 9

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Accepted Answer

A) True 
 B)False

Question 10

Match each term to its definition.
-Compatibility

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 11

A cash payments journal is a special journal that ________.

Accepted Answer

A)  differs from the cash disbursements journal 
B)  eliminates the need to perform a bank reconciliation 
C)  is used to record cash payments by check and currency 
D)  is used to record the net of cash payments and cash receipts by check and currency 
A)  differs from the cash disbursements journal 
B)  eliminates the need to perform a bank reconciliation 
C)  is used to record cash payments by check and currency 
D)  is used to record the net of cash payments and cash receipts by check and currency

Question 12

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

Question 13

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 14

When posting entries from a purchases journal to the general ledger,________.

Accepted Answer

A)  posting references are not shown in the subsidiary ledger 
B)  the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger 
C)  the amounts in the Other Accounts DR column are posted individually to the specific accounts 
D)  entries are posted on a daily basis for all the accounts 
A)  posting references are not shown in the subsidiary ledger 
B)  the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger 
C)  the amounts in the Other Accounts DR column are posted individually to the specific accounts 
D)  entries are posted on a daily basis for all the accounts

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

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 17

If a business uses the periodic inventory system,the sales journal will ________.

Accepted Answer

A)  record both the cash and credit sales 
B)  include a Purchase DR and Account Receivable CR column 
C)  exclude the Accounts Receivable DR and Sales Revenue CR column 
D)  exclude the Cost of Goods Sold DR and Merchandise Inventory CR column 
A)  record both the cash and credit sales 
B)  include a Purchase DR and Account Receivable CR column 
C)  exclude the Accounts Receivable DR and Sales Revenue CR column 
D)  exclude the Cost of Goods Sold DR and Merchandise Inventory CR column

Question 18

For each of the following business transactions,list two examples of related accounting information system (AIS)activities:
 $$\begin{array} { | l | l | } 
\hline \text { Business Transactions } & \text { Accounting Information System Activities } \
\hline \text { Sellmerchandise } & \
\text { inventory } & \
\hline \text { Purchase of goods or } & \
\text { services } & \
\hline \text { Payroll } & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following business transactions,list...

Question 19

Depreciation expense 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 20

In a perpetual inventory system,which of the following are debit columns in 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

Exam 7: Accounting Information Systems

Which of the following is TRUE of a network?

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

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

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

Which of the following is an advantage of enterprise resource planning (ERP)systems?

The collection of time records for company employees is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.

Which of the following transactions is recorded in the purchases journal?

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Match each term to its definition. -Compatibility

A cash payments journal is a special journal that ________.

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

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

When posting entries from a purchases journal to the general ledger,________.

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

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

If a business uses the periodic inventory system,the sales journal will ________.

For each of the following business transactions,list two examples of related accounting information system (AIS)activities: Business Transactions Accounting Information System Activities Sellmerchandise inventory Purchase of goods or services Payroll

Depreciation expense is recorded in a ________.

In a perpetual inventory system,which of the following are debit columns in a typical cash payments 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

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