Question 1

The cash payments journal is a special journal used to record cash payments by currency but not by check.

Accepted Answer

A) True 
 B)False

Question 2

Cash sales are recorded in the ________ journal.

Accepted Answer

A)  general 
B)  sales 
C)  cash receipts 
D)  cash sales 
A)  general 
B)  sales 
C)  cash receipts 
D)  cash sales

Question 3

An accounting information system creates the structure to encourage adherence to management policies.

Accepted Answer

A) True 
 B)False

Question 4

In an accounting information system,source documents are the documents which ________.

Accepted Answer

A)  are not needed if a computerized system is used 
B)  detail the strategic planning of the business 
C)  have complete information about the financial statements 
D)  provide the evidence and data for accounting transactions 
A)  are not needed if a computerized system is used 
B)  detail the strategic planning of the business 
C)  have complete information about the financial statements 
D)  provide the evidence and data for accounting transactions

Question 5

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

Accepted Answer

A)  In a manual system, reports and financial statements can be created using Word documents, Excel spreadsheets, or PowerPoint. 
B)  In a computerized system, the software can generate reports instantaneously that cannot be formatted. 
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 is audited and error-free, it provides the evidence and data for accounting transactions. 
A)  In a manual system, reports and financial statements can be created using Word documents, Excel spreadsheets, or PowerPoint. 
B)  In a computerized system, the software can generate reports instantaneously that cannot be formatted. 
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 is audited and error-free, it provides the evidence and data for accounting transactions.

Question 6

Silver Company had the following transactions:
 $\begin{array}{|l|l|}
\hline\text { Jan } 4 & \text { Issued check no. } 430 \text { to purchase equipment for cash, } \$ 2,200 . \
\hline 19 & \text { Purchased merchandise inventory for cash, } \$ 400,1 \text { issuing check no. } 431 . \
\hline 19 & \text { Paid Kale Co amount owed, } \$ 1,025, \text { less } \$ 60 \text { discount. Issued check no. } 432 . \
\hline 27 & \begin{array}{l}
\text { Issued check no. } 433 \text { to pay utilities, } \$ 210 . \text { The bill was just received, and there is } \
\text { no liability recorded. }
\end{array}\
\hline
\end{array}$
 Use the following cash payments journal to record the preceding transactions.The company uses the perpetual inventory system.

Accepted Answer

The answer of Silver Company had the following transactions:
 \(\begin{array}{|l|l|}
\hline\text...

Question 7

Match each term to its definition.
-Flexibility

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 8

If there is no cash involved in a business transaction,the transaction should be recorded in ________.

Accepted Answer

A)  either the cash receipts journal or general journal 
B)  either the sales journal or purchases journal 
C)  the general journal only 
D)  sales journal, purchases journal, or general journal 
A)  either the cash receipts journal or general journal 
B)  either the sales journal or purchases journal 
C)  the general journal only 
D)  sales journal, purchases journal, or general journal

Question 9

Which of the following is an input device in an accounting information system?

Accepted Answer

A)  keyboard 
B)  internet protocol 
C)  printer 
D)  router 
A)  keyboard 
B)  internet protocol 
C)  printer 
D)  router

Question 10

In a cash receipts journal,________.

Accepted Answer

A)  cash sales are recorded in the Accounts Receivable CR column and the Cash DR column 
B)  collections on account are recorded in the Accounts Receivable DR column and the Cash DR column 
C)  the miscellaneous cash receipt transactions are ignored 
D)  the cash sales are recorded in the Sales Revenue CR column 
A)  cash sales are recorded in the Accounts Receivable CR column and the Cash DR column 
B)  collections on account are recorded in the Accounts Receivable DR column and the Cash DR column 
C)  the miscellaneous cash receipt transactions are ignored 
D)  the cash sales are recorded in the Sales Revenue CR column

Question 11

For each of the following transactions,state which special journal should be used to record the transaction.In addition,state which columns will be used.
Transaction 1: Freeworld Co.paid $1,500 for monthly utilities,on the date the bill was received.
Which special journal?
Which columns are used to record the transaction?
Transaction 2: Wideworld Co.purchased office supplies on account.
Which special journal?
Which columns are used to record the transaction?
Transaction 3: Wonderworld Co.sold $5,000 of merchandise inventory to A.Allen,on account.The cost of the merchandise inventory was $3,200.The company uses a perpetual inventory system.
Which special journal?
Which columns are used to record the transaction?
Transaction 4: Oneworld Co.borrowed $10,000 from World National Bank.
Which special journal?
Which columns are used to record the transaction?

Accepted Answer

Transaction 1: Freeworld Co.paid $1,500

Question 12

The sales journal is used for all sales of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 13

List and briefly discuss the two basic components of a computerized accounting information system.

Accepted Answer

Hardware is the electronic equipment tha

Question 14

Companies are now spending less amounts of cash to ensure that their data and information are secure.

Accepted Answer

A) True 
 B)False

Question 15

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

Accepted Answer

A) True 
 B)False

Question 16

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Accepted Answer

A) True 
 B)False

Question 17

Sales on account are recorded in a cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following activities is handled by selecting the "Make payment" action of QuickBooks?

Accepted Answer

A)  entering sales receipts 
B)  selecting bills to be paid 
C)  recording a bill that has been received 
D)  recording customer payments 
A)  entering sales receipts 
B)  selecting bills to be paid 
C)  recording a bill that has been received 
D)  recording customer payments

Question 19

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 7: Accounting Information Systems

The cash payments journal is a special journal used to record cash payments by currency but not by check.

Cash sales are recorded in the ________ journal.

An accounting information system creates the structure to encourage adherence to management policies.

In an accounting information system,source documents are the documents which ________.

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

Match each term to its definition. -Flexibility

If there is no cash involved in a business transaction,the transaction should be recorded in ________.

Which of the following is an input device in an accounting information system?

In a cash receipts journal,________.

The sales journal is used for all sales of merchandise inventory.

List and briefly discuss the two basic components of a computerized accounting information system.

Companies are now spending less amounts of cash to ensure that their data and information are secure.

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Sales on account are recorded in a cash receipts journal.

Which of the following activities is handled by selecting the "Make payment" action of QuickBooks?

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

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.

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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