Question 1

Which of the following is true of a purchases journal?

Accepted Answer

A) For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. 
B) Cash purchases are recorded in the purchases journal. 
C) For a perpetual inventory system,a column titled Purchases DR is needed. 
D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies. 
A) For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. 
B) Cash purchases are recorded in the purchases journal. 
C) For a perpetual inventory system,a column titled Purchases DR is needed. 
D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies.

Question 2

Liberty Corporation sells a product for $500 cash to Sarah Lewis.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 3

Which of the following is a disadvantage of enterprise resource planning (ERP)systems?

Accepted Answer

A) It is not beneficial to large corporations. 
B) It is not supported by cloud computing. 
C) Its implementation requires a large commitment of time and people. 
D) It uses separate software systems,such as sales and payroll. 
A) It is not beneficial to large corporations. 
B) It is not supported by cloud computing. 
C) Its implementation requires a large commitment of time and people. 
D) It uses separate software systems,such as sales and payroll.

Question 4

In a perpetual inventory system,when cash sales are recorded,________.

Accepted Answer

A) merchandise inventory decreases and cost of goods sold decreases 
B) sales revenue increases and cash decreases 
C) sales revenue increases and cost of goods sold decreases 
D) merchandise inventory decreases and cost of goods sold increases 
A) merchandise inventory decreases and cost of goods sold decreases 
B) sales revenue increases and cash decreases 
C) sales revenue increases and cost of goods sold decreases 
D) merchandise inventory decreases and cost of goods sold increases

Question 5

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

Accepted Answer

A) network 
B) hardware 
C) software 
D) router 
A) network 
B) hardware 
C) software 
D) router

Question 6

Which of the following transactions is recorded in the purchases journal?

Accepted Answer

A) purchase of furniture on account 
B) cash purchase of merchandise inventory 
C) sale of merchandise inventory on account 
D) cash sales of merchandise inventory 
A) purchase of furniture on account 
B) cash purchase of merchandise inventory 
C) sale of merchandise inventory on account 
D) cash sales of merchandise inventory

Question 7

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

Accepted Answer

Hardware is the electronic equipment tha

Question 8

Blue Company has four customers: A,B,C,and D.The accounts receivable balance in the general ledger is $9,383 and the accounts receivable subsidiary ledger of customers A,C,and D have $1,546,$2,696,and $3,440,respectively.Calculate the amount in the accounts receivable subsidiary ledger account of customer B.

Accepted Answer

A) $7,682 
B) $3,247 
C) $2,391 
D) $1,701 
A) $7,682 
B) $3,247 
C) $2,391 
D) $1,701

Question 9

Which of the following is not included in the purchases journal?

Accepted Answer

A) purchases of merchandise inventory for cash 
B) purchase of merchandise inventory on account 
C) purchase of office supplies on credit 
D) purchase of equipment on account 
A) purchases of merchandise inventory for cash 
B) purchase of merchandise inventory on account 
C) purchase of office supplies on credit 
D) purchase of equipment on account

Question 10

Rockville Corporation makes a $1,200 purchase of merchandise inventory on account.This transaction will be recorded in the ________.

Accepted Answer

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

Question 11

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

Accepted Answer

The answer of   
Use the following cash payments...

Question 12

List the four special journals that are often used in a manual accounting information system.State what types of transactions are recorded in each of these special journals.

Accepted Answer

1.Sales journal: used to record sales on

Question 13

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Accepted Answer

A) True 
 B)False

Question 14

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Accepted Answer

A) approval of new employees 
B) receipt of customer payment 
C) processing of vendor invoices 
D) payment for goods or services 
A) approval of new employees 
B) receipt of customer payment 
C) processing of vendor invoices 
D) payment for goods or services

Question 16

An automobile parts retailer purchases merchandise inventory for cash.When using a manual accounting information system,this transaction is recorded in the ________.

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

Accepted Answer

A) Merchandise Inventory column and Cash column 
B) Other Accounts column and Accounts Payable column 
C) Merchandise Inventory column and Accounts Payable column 
D) Other Accounts column and Cash column 
A) Merchandise Inventory column and Cash column 
B) Other Accounts column and Accounts Payable column 
C) Merchandise Inventory column and Accounts Payable column 
D) Other Accounts column and Cash column

Question 19

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 20

The collection of time records is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Which of the following is true of a purchases journal?

Liberty Corporation sells a product for $500 cash to Sarah Lewis.This transaction will be recorded in the ________.

Which of the following is a disadvantage of enterprise resource planning (ERP)systems?

In a perpetual inventory system,when cash sales are recorded,________.

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

Which of the following transactions is recorded in the purchases journal?

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

Which of the following is not included in the purchases journal?

Rockville Corporation makes a $1,200 purchase of merchandise inventory on account.This transaction will be recorded in the ________.

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

List the four special journals that are often used in a manual accounting information system.State what types of transactions are recorded in each of these special journals.

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

An automobile parts retailer purchases merchandise inventory for cash.When using a manual accounting information system,this transaction is recorded in the ________.

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

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

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

The collection of time records is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.

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