Question 1

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 2

Which of the following is true of posting from a sales journal to the general ledger?

Accepted Answer

A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. 
B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. 
C) Even though the sales journal is posted monthly to the subsidiary ledger,it is a reliable record of the amount received from each customer. 
D) Under a perpetual inventory system,the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column. 
A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. 
B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. 
C) Even though the sales journal is posted monthly to the subsidiary ledger,it is a reliable record of the amount received from each customer. 
D) Under a perpetual inventory system,the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Sales on account are recorded in a cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of data processing and storage in a computerized information system?

Accepted Answer

A) In a computerized accounting information system,processing includes manually journalizing transactions and posting to the accounts. 
B) In a computerized accounting information system,there will be a main centralized computer where data is stored,which cannot be accessed from any other computers. 
C) In both computerized and manual systems,all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses. 
D) In a computerized accounting information system,companies need to spend large amounts of cash to ensure that their data and information are secure. 
A) In a computerized accounting information system,processing includes manually journalizing transactions and posting to the accounts. 
B) In a computerized accounting information system,there will be a main centralized computer where data is stored,which cannot be accessed from any other computers. 
C) In both computerized and manual systems,all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses. 
D) In a computerized accounting information system,companies need to spend large amounts of cash to ensure that their data and information are secure.

Question 6

St.Petersburg Corporation makes a $1,200 purchase of merchandise inventory for cash.This transaction will be recorded in the ________.

Accepted Answer

A) cash payments journal 
B) general journal 
C) cash receipts journal 
D) purchase journal 
A) cash payments journal 
B) general journal 
C) cash receipts journal 
D) purchase journal

Question 7

A general ledger is an accounting journal designed to record one specific type of transaction.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of an accounts receivable subsidiary ledger?

Accepted Answer

A) It does not include a receivable account for each customer,but includes a cumulative account for all customers. 
B) It contains information about the amount each customer purchased on credit,but excludes the customer name. 
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger. 
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts receivable subsidiary ledger. 
A) It does not include a receivable account for each customer,but includes a cumulative account for all customers. 
B) It contains information about the amount each customer purchased on credit,but excludes the customer name. 
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger. 
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts receivable subsidiary ledger.

Question 9

Entries in the cash payments journal are posted daily to the accounts payable subsidiary ledger and monthly to the general ledger.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) In a manual system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that can never be manipulated. 
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 must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that can never be manipulated. 
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 11

In a typical computerized accounting information system,________.

Accepted Answer

A) transactions must be recorded in debit and credit format 
B) the software automatically knows to record a debit or a credit 
C) transactions are posted manually 
D) spreadsheets must be used to produce financial statements 
A) transactions must be recorded in debit and credit format 
B) the software automatically knows to record a debit or a credit 
C) transactions are posted manually 
D) spreadsheets must be used to produce financial statements

Question 12

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

Accepted Answer

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

Question 13

The sale of merchandise inventory for cash is recorded in the ________.

Accepted Answer

A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal 
A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal

Question 14

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 15

Since a computerized system uses software to process transactions,employees are no longer required to manually journalize and post transactions to the accounts.

Accepted Answer

A) True 
 B)False

Question 16

In the cash receipts journal,the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 17

Use the following cash receipts journal to record the preceding transactions.

Accepted Answer

The answer of   
Use the following cash receipts...

Question 18

Which of the following will be recorded in the general journal when using a manual accounting information system?

Accepted Answer

A) adjusting and closing entries 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) sale of merchandise inventory on account 
A) adjusting and closing entries 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) sale of merchandise inventory on account

Question 19

An enterprise resource planning (ERP)is a ________.

Accepted Answer

A) hardware system that controls the access of employees to different levels of production in a firm 
B) software system used by small companies to record revenue and expenses 
C) hardware system of electronic linkages that allows different computers to share the same information 
D) software system that can integrate all of a company's functions,departments,and data into a single system 
A) hardware system that controls the access of employees to different levels of production in a firm 
B) software system used by small companies to record revenue and expenses 
C) hardware system of electronic linkages that allows different computers to share the same information 
D) software system that can integrate all of a company's functions,departments,and data into a single system

Question 20

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

Exam 7: Accounting Information Systems

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

Which of the following is true of posting from a sales journal to the general ledger?

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

Sales on account are recorded in a cash receipts journal.

Which of the following is true of data processing and storage in a computerized information system?

St.Petersburg Corporation makes a $1,200 purchase of merchandise inventory for cash.This transaction will be recorded in the ________.

A general ledger is an accounting journal designed to record one specific type of transaction.

Which of the following is true of an accounts receivable subsidiary ledger?

Entries in the cash payments journal are posted daily to the accounts payable subsidiary ledger and monthly to the general ledger.

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

In a typical computerized accounting information system,________.

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

The sale of merchandise inventory for cash is recorded in the ________.

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

Since a computerized system uses software to process transactions,employees are no longer required to manually journalize and post transactions to the accounts.

In the cash receipts journal,the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Use the following cash receipts journal to record the preceding transactions.

Which of the following will be recorded in the general journal when using a manual accounting information system?

An enterprise resource planning (ERP)is a ________.

Cash purchases are generally recorded in the ________.

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