Question 1

Which of the following accounting information system activities is completed when merchandise inventory is sold?

Accepted Answer

A) preparation and payment of payroll 
B) receipt of customer payment 
C) receipt of goods or services 
D) payment for goods or services 
A) preparation and payment of payroll 
B) receipt of customer payment 
C) receipt of goods or services 
D) payment for goods or services

Question 2

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

Accepted Answer

A) are audited and presented to the Securities and Exchange Commission 
B) detail the strategic planning of the business 
C) have complete information about the financial statements 
D) provide the evidence for accounting transactions 
A) are audited and presented to the Securities and Exchange Commission 
B) detail the strategic planning of the business 
C) have complete information about the financial statements 
D) provide the evidence for accounting transactions

Question 3

A CR.5 posting reference in a subsidiary ledger signifies that the ________.

Accepted Answer

A) posting is transferred from the cash receipts journal,page 5 
B) transaction on page number 5 is credited 
C) amount credited is after a 5% discount 
D) sales on credit is expected to be paid within five days 
A) posting is transferred from the cash receipts journal,page 5 
B) transaction on page number 5 is credited 
C) amount credited is after a 5% discount 
D) sales on credit is expected to be paid within five days

Question 4

Use the following sales journal to record the preceding transactions.

Accepted Answer

The answer of   
Use the following sales journal...

Question 5

In a purchases journal,the total of the ________ column is not posted to the general ledger.

Accepted Answer

A) Merchandise Inventory DR 
B) Other Accounts DR,Amount 
C) Accounts Payable CR 
D) Office Supplies DR 
A) Merchandise Inventory DR 
B) Other Accounts DR,Amount 
C) Accounts Payable CR 
D) Office Supplies DR

Question 6

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 7

On May 31,a retail firm pays rent of $1,600 for the month of May.When this transaction is recorded in the cash payments journal,________.

Accepted Answer

A) assets and equity will increase by $1,600 
B) assets and liabilities will decrease by $1,600 
C) assets and equity will decrease by $1,600 
D) liabilities and equity will increase by $1,600 
A) assets and equity will increase by $1,600 
B) assets and liabilities will decrease by $1,600 
C) assets and equity will decrease by $1,600 
D) liabilities and equity will increase by $1,600

Question 8

Which of the following is true of an effective accounting information system?

Accepted Answer

A) It has little influence in improving a company's internal control activities. 
B) The cost of using an accounting information system is the same for both small and large businesses. 
C) A compatible accounting information system works smoothly with the business's employees and organizational structure. 
D) Large private companies prefer a manual accounting information system since their financial statements are not audited. 
A) It has little influence in improving a company's internal control activities. 
B) The cost of using an accounting information system is the same for both small and large businesses. 
C) A compatible accounting information system works smoothly with the business's employees and organizational structure. 
D) Large private companies prefer a manual accounting information system since their financial statements are not audited.

Question 9

Cash disbursement journals also are known as ________.

Accepted Answer

A) sales journals 
B) purchases journals 
C) cash receipts journals 
D) cash payments journals 
A) sales journals 
B) purchases journals 
C) cash receipts journals 
D) cash payments journals

Question 10

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 11

An accounting information system is said to have good flexibility,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 12

Which of the following is true of the general journal?

Accepted Answer

A) All transactions recorded in one of the special journals also are recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal. 
A) All transactions recorded in one of the special journals also are recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal.

Question 13

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Accepted Answer

Enterprise resource planning systems int

Question 14

Generally,all transactions are recorded in a special journal as well as the general journal.

Accepted Answer

A) True 
 B)False

Question 15

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Accepted Answer

A) True 
 B)False

Question 16

On July 10,a hardware retailer purchased merchandise inventory on account for $2,300.The company plans to pay $1,700 the following week and the remaining amount the week after.Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

Accepted Answer

A) $1,150 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column. 
B) $4,000 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column. 
C) $2,300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column. 
D) $2,300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column. 
A) $1,150 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column. 
B) $4,000 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column. 
C) $2,300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column. 
D) $2,300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

Accepted Answer

A) should be manual 
B) must be flexible to accommodate changes in a business over time 
C) should work smoothly with the business's employees 
D) must provide adequate controls of a business's assets and data 
A) should be manual 
B) must be flexible to accommodate changes in a business over time 
C) should work smoothly with the business's employees 
D) must provide adequate controls of a business's assets and data

Question 19

Adjusting entries are recorded in the ________.

Accepted Answer

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

Question 20

The main computer where data are stored,which can be accessed from many different computers,is known as software.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Which of the following accounting information system activities is completed when merchandise inventory is sold?

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

A CR.5 posting reference in a subsidiary ledger signifies that the ________.

Use the following sales journal to record the preceding transactions.

In a purchases journal,the total of the ________ column is not posted to the general ledger.

A cash payments journal is a special journal that ________.

On May 31,a retail firm pays rent of $1,600 for the month of May.When this transaction is recorded in the cash payments journal,________.

Which of the following is true of an effective accounting information system?

Cash disbursement journals also are known as ________.

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

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

Which of the following is true of the general journal?

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Generally,all transactions are recorded in a special journal as well as the general journal.

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

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

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

Adjusting entries are recorded in the ________.

The main computer where data are stored,which can be accessed from many different computers,is known as software.

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