Exam 7: Accounting Information Systems

Accounting information systems are designed to capture information about a company's transactions and events and to provide output including financial, managerial, and tax reports.

The following information is available for AllBev, Inc. (all amounts are in millions): a. Determine the segment return on assets for each geographic segment. b. Comment on the results. How do the segments compare with respect to profitability? c. What measures could be taken to improve segment return?

_______________________ are links among computers giving different users and different computers access to common databases and programs.

Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions: a. Foot and crossfoot the journal for accuracy. b. Identify the error and indicate how to correct the error. c. When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable. What is the most likely cause and how should it be corrected?

The following special journal is taken from a merchandising company that uses the perpetual inventory system:

Individual transactions in the sales journal are regularly posted to customer accounts in the accounts payable ledger.

The __________________ principle requires that an accounting information system conform with a company's activities, personnel, and structure, and must adapt to a company's unique characteristics.

A business segment is a part of a company that is separately identified by its products or services, or by the geographic market it serves.

Philip Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Philip. Prepare the following: a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger. b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only. c. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.

Williams Company began business on May 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

Explain the purposes, types, and uses of special journals

An accounts payable ledger is:

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system.

The accounts receivable ledger:

All of the following statements regarding accounting information systems are true except:

The SAP enterprise-resource planning software is already being used to help direct the operations of many of the world's largest companies.

The accounting principle that prescribes an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the:

Enterprise-resource planning software:

The Accounts Payable account in the general ledger is:

When a company uses special journals, the general journal is used for selected transactions and events including: