Question 1

What are the two basic components of a computerized accounting information system?

Accepted Answer

A) sales journal and purchase journal 
B) hardware and software 
C) cash payments journal and cash receipts journal 
D) network and cloud computing 
A) sales journal and purchase journal 
B) hardware and software 
C) cash payments journal and cash receipts journal 
D) network and cloud computing B

Question 2

An accounting information system collects,records,stores,and processes accounting data to produce information that is useful for decision makers.

Accepted Answer

A) True 
 B)False  True

Question 3

Tangent Corporation sold a product for $7,150 to Michael Cardon on credit.The cost of goods sold is $5,650.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $5,650 in the ________.

Accepted Answer

A) Accounts Receivable DR,Sales Revenue CR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Merchandise Inventory DR,Cost of Goods Sold CR column 
D) Sales Revenue DR,Accounts Receivable CR column 
A) Accounts Receivable DR,Sales Revenue CR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Merchandise Inventory DR,Cost of Goods Sold CR column 
D) Sales Revenue DR,Accounts Receivable CR column B

Question 4

A special journal is ________.

Accepted Answer

A) an accounting journal designed to record a specific type of transaction 
B) an accounting journal that holds individual accounts that support a specific general ledger account 
C) a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account 
D) a created list of the accounts used by a business entity to define each class of items for which cash is spent or received 
A) an accounting journal designed to record a specific type of transaction 
B) an accounting journal that holds individual accounts that support a specific general ledger account 
C) a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account 
D) a created list of the accounts used by a business entity to define each class of items for which cash is spent or received

Question 5

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

Question 6

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

Accepted Answer

A) True 
 B)False

Question 7

On April 1,a hardware retailer purchases inventory on account for $1,800.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

Accepted Answer

A) Merchandise Inventory decreases by $1,800 and Accounts Receivable decreases by $1,800. 
B) Merchandise Inventory decreases by $1,800 and Accounts Receivable increases by $1,800. 
C) Merchandise Inventory increases by $1,800 and Accounts Payable decreases by $1,800. 
D) Merchandise Inventory increases by $1,800 and Accounts Payable increases by $1,800. 
A) Merchandise Inventory decreases by $1,800 and Accounts Receivable decreases by $1,800. 
B) Merchandise Inventory decreases by $1,800 and Accounts Receivable increases by $1,800. 
C) Merchandise Inventory increases by $1,800 and Accounts Payable decreases by $1,800. 
D) Merchandise Inventory increases by $1,800 and Accounts Payable increases by $1,800.

Question 8

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 9

Cash purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

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

Question 13

MultiMet Corporation sold merchandise for $4,450 to Simpsons,Inc.on account.The cost of goods sold was $1,185.MultiMet uses a perpetual inventory system and special journals.The $4,450 is recorded as ________.

Accepted Answer

A) an entry in the general journal 
B) Accounts Receivable DR,Sales Revenue CR column of the sales journal 
C) Merchandise Inventory DR column of the purchases journal 
D) Accounts Receivable CR column of cash receipts journal 
A) an entry in the general journal 
B) Accounts Receivable DR,Sales Revenue CR column of the sales journal 
C) Merchandise Inventory DR column of the purchases journal 
D) Accounts Receivable CR column of cash receipts journal

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

An effective accounting information system that provides relevant information ________.

Accepted Answer

A) increases the likelihood of fraud and errors 
B) reduces the cost of employing an accounting information system 
C) improves decision making and reduces uncertainty 
D) improves the accuracy of data entry when manual 
A) increases the likelihood of fraud and errors 
B) reduces the cost of employing an accounting information system 
C) improves decision making and reduces uncertainty 
D) improves the accuracy of data entry when manual

Question 17

Which of the following is a column in a purchases journal?

Accepted Answer

A) Cost of Goods Sold CR 
B) Accounts Payable CR 
C) Sales Revenue DR 
D) Interest Revenue CR 
A) Cost of Goods Sold CR 
B) Accounts Payable CR 
C) Sales Revenue DR 
D) Interest Revenue CR

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 checkmark 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 checkmark 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

An accounting information system is said to have good compatibility,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 20

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

Exam 7: Accounting Information Systems

What are the two basic components of a computerized accounting information system?

An accounting information system collects,records,stores,and processes accounting data to produce information that is useful for decision makers.

Tangent Corporation sold a product for $7,150 to Michael Cardon on credit.The cost of goods sold is $5,650.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $5,650 in the ________.

A special journal is ________.

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

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

On April 1,a hardware retailer purchases inventory on account for $1,800.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

Which of the following is true of a network?

Cash purchases are recorded in the purchases journal.

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

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

MultiMet Corporation sold merchandise for $4,450 to Simpsons,Inc.on account.The cost of goods sold was $1,185.MultiMet uses a perpetual inventory system and special journals.The $4,450 is recorded as ________.

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

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

An effective accounting information system that provides relevant information ________.

Which of the following is a column in a purchases journal?

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

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

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