Question 1

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 2

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Deal Corporation sells a product for $500 on account to Liza Masters.This transaction will be recorded in the ________.

Accepted Answer

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

Question 5

A business must only invest in an accounting information system in which the benefits received outweigh the cost of the system.

Accepted Answer

A) True 
 B)False

Question 6

Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Which of the following is an example of hardware?

Accepted Answer

A) monitor 
B) malware 
C) firewall 
D) operating system 
A) monitor 
B) malware 
C) firewall 
D) operating system

Question 9

A sales journal is ________.

Accepted Answer

A) a special journal used to record all the cash sales 
B) used to record the sales of assets other than merchandise inventory 
C) a special journal used to record credit sales 
D) a general journal used to record the adjustments in revenue account 
A) a special journal used to record all the cash sales 
B) used to record the sales of assets other than merchandise inventory 
C) a special journal used to record credit sales 
D) a general journal used to record the adjustments in revenue account

Question 10

The main computer where data is stored,which can be accessed from many different computers is known as a(n)________.

Accepted Answer

A) internet protocol 
B) RAM 
C) server 
D) router 
A) internet protocol 
B) RAM 
C) server 
D) router

Question 11

Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

Accepted Answer

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

Question 12

Which of the following is true of a sales journal prepared under the perpetual inventory system?

Accepted Answer

A) It includes a Cost of Goods Sold DR,Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal also are entered in the general journal. 
D) It cannot be used with a perpetual inventory system. 
A) It includes a Cost of Goods Sold DR,Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal also are entered in the general journal. 
D) It cannot be used with a perpetual inventory system.

Question 13

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a benefit of using a computerized accounting information system?

Accepted Answer

A) The software can accurately measure the intrinsic value of the firm using the built-in simulation techniques. 
B) There is no need to review the financial statements for accuracy. 
C) The software is easy to use,thus no training or review is necessary. 
D) The software automatically transfers the amounts from the general ledger to the financial statements. 
A) The software can accurately measure the intrinsic value of the firm using the built-in simulation techniques. 
B) There is no need to review the financial statements for accuracy. 
C) The software is easy to use,thus no training or review is necessary. 
D) The software automatically transfers the amounts from the general ledger to the financial statements.

Question 15

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Accepted Answer

A) True 
 B)False

Question 16

The cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following transactions is recorded by selecting the "Receive payment" action of QuickBooks?

Accepted Answer

A) making electricity bill payments 
B) selling merchandise inventory on account 
C) selling products for cash 
D) paying interest to bondholders 
A) making electricity bill payments 
B) selling merchandise inventory on account 
C) selling products for cash 
D) paying interest to bondholders

Question 18

Describe the transactions recorded in the purchases journal.

Accepted Answer

The purchases journal is used

Question 19

Describe the transactions recorded in the cash payments journal.

Accepted Answer

The cash payments jo

Question 20

Which of the following is true of the comparison between a manual and a computerized accounting information system?

Accepted Answer

A) In both manual and computerized systems,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system,data are contained in paper documents,which are often stored in filing cabinets and off-site document warehouses;whereas in a computerized system,data are stored on a main computer called a server. 
D) In both manual and computerized systems,processing data includes manually journalizing transactions and posting to the accounts. 
A) In both manual and computerized systems,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system,data are contained in paper documents,which are often stored in filing cabinets and off-site document warehouses;whereas in a computerized system,data are stored on a main computer called a server. 
D) In both manual and computerized systems,processing data includes manually journalizing transactions and posting to the accounts.

Exam 7: Accounting Information Systems

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

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

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

Deal Corporation sells a product for $500 on account to Liza Masters.This transaction will be recorded in the ________.

A business must only invest in an accounting information system in which the benefits received outweigh the cost of the system.

Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.

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

Which of the following is an example of hardware?

A sales journal is ________.

The main computer where data is stored,which can be accessed from many different computers is known as a(n)________.

Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

Which of the following is true of a sales journal prepared under the perpetual inventory system?

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Which of the following is a benefit of using a computerized accounting information system?

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

The cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Which of the following transactions is recorded by selecting the "Receive payment" action of QuickBooks?

Describe the transactions recorded in the purchases journal.

Describe the transactions recorded in the cash payments journal.

Which of the following is true of the comparison between a manual and a computerized accounting information system?

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