Question 1

Segment return on assets is segment operating income divided by segment average assets.

Accepted Answer

A) True 
 B)False

Question 2

All of the following statements regarding input devices are true except:

Accepted Answer

A)  Input devices capture information from source documents and enable its transfer to the system's information processing component. 
B)  Input devices convert data on source documents from written form to a form usable for the system. 
C)  Input devices include keyboards, scanners, and modems. 
D)  Input devices include journal entries. 
E)  Input devices are always reliable and no controls are needed to verify accuracy of input. 
A)  Input devices capture information from source documents and enable its transfer to the system's information processing component. 
B)  Input devices convert data on source documents from written form to a form usable for the system. 
C)  Input devices include keyboards, scanners, and modems. 
D)  Input devices include journal entries. 
E)  Input devices are always reliable and no controls are needed to verify accuracy of input.

Question 3

A company sold merchandise on credit for $5,000 (cost is $2,400). Identify the journal the transaction would be recorded in.

Accepted Answer

A)  Cash disbursements journal. 
B)  Sales journal. 
C)  Cash receipts journal. 
D)  Purchases journal. 
E)  General journal. 
A)  Cash disbursements journal. 
B)  Sales journal. 
C)  Cash receipts journal. 
D)  Purchases journal. 
E)  General journal.

Question 4

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December:   Record these transactions using the journals below.

Accepted Answer

The answer of The Woodview Company uses a sales journal,...

Question 5

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts.

Accepted Answer

A) True 
 B)False

Question 6

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.   a. Use the sales journal and the cash receipts journal to record these transactions.
b. Prepare a schedule of accounts receivable. There was no accounts receivable balance at December 1.

Accepted Answer

The answer of The Sun Company completed the following sales...

Question 7

A business segment:

Accepted Answer

A)  Requires only internal reporting. 
B)  Is a part of a company that is separately identified by its products, services, or geographic market. 
C)  Requires special journals. 
D)  Requires subsidiary ledgers. 
E)  Cannot report its results separately. 
A)  Requires only internal reporting. 
B)  Is a part of a company that is separately identified by its products, services, or geographic market. 
C)  Requires special journals. 
D)  Requires subsidiary ledgers. 
E)  Cannot report its results separately.

Question 8

The special journals of many accounting systems include the:

Accepted Answer

A)  Sales journal. 
B)  Purchases journal. 
C)  Cash receipts journal. 
D)  Cash disbursements journal. 
E)  General Ledger. 
A)  Sales journal. 
B)  Purchases journal. 
C)  Cash receipts journal. 
D)  Cash disbursements journal. 
E)  General Ledger.

Question 9

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

Accepted Answer

A)  Accounting information systems collect and process data from transactions and events. 
B)  Accounting information systems organize data in useful forms. 
C)  Accounting information systems do not establish internal control procedures. 
D)  Accounting information systems are crucial to effective decision making. 
E)  Accounting information systems communicate information to business decision makers. 
A)  Accounting information systems collect and process data from transactions and events. 
B)  Accounting information systems organize data in useful forms. 
C)  Accounting information systems do not establish internal control procedures. 
D)  Accounting information systems are crucial to effective decision making. 
E)  Accounting information systems communicate information to business decision makers.

Question 10

Segment information is often useful to investors for evaluating a company's profitability, risk, and growth.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

All of the following statements regarding internal control procedures are true except:

Accepted Answer

A)  Internal control procedures are designed to ensure reliable financial reports. 
B)  Internal control procedures are designed to safeguards company assets. 
C)  Internal control procedures direct operations toward common goals. 
D)  Internal control procedures include methods to achieve compliance with laws and regulation. 
E)  Internal control procedures are bit affected by the cost-benefit principle. 
A)  Internal control procedures are designed to ensure reliable financial reports. 
B)  Internal control procedures are designed to safeguards company assets. 
C)  Internal control procedures direct operations toward common goals. 
D)  Internal control procedures include methods to achieve compliance with laws and regulation. 
E)  Internal control procedures are bit affected by the cost-benefit principle.

Question 13

What is the segment return on assets ratio? What is it used for?

Accepted Answer

The segment return on assets is segment

Question 14

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Accepted Answer

A) True 
 B)False

Question 15

The difference in the sales journal between the perpetual and periodic inventory systems is that a column is used to record cost of goods sold and inventory amounts for each sale under the perpetual system but not the periodic system.

Accepted Answer

A) True 
 B)False

Question 16

A company had cash sales of $24,000 (cost is $13,000). Identify the journal the transaction would be recorded in.

Accepted Answer

A)  Cash disbursements journal. 
B)  Sales journal. 
C)  Cash receipts journal. 
D)  Purchase journal. 
E)  General journal. 
A)  Cash disbursements journal. 
B)  Sales journal. 
C)  Cash receipts journal. 
D)  Purchase journal. 
E)  General journal.

Question 17

What is purpose of footing and crossfooting the column totals in special journals

Accepted Answer

To foot a column of numbers is

Question 18

A company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. A perpetual inventory system is used. The following transactions were completed by the company during the current month of October:   Record these transactions in the appropriate journal shown below.

Accepted Answer

The answer of A company uses a sales journal, purchases...

Question 19

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Accepted Answer

A) True 
 B)False

Question 20

_____________________________________ consist of people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Accepted Answer

Accounting

Exam 7: Accounting Information Systems

Segment return on assets is segment operating income divided by segment average assets.

All of the following statements regarding input devices are true except:

A company sold merchandise on credit for $5,000 (cost is $2,400). Identify the journal the transaction would be recorded in.

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December: Record these transactions using the journals below.

Three transactions that would be recorded in the sales journal are: (1) recording sales taxes (2) recording sales returns and allowances and (3) recording purchases discounts.

A business segment:

The special journals of many accounting systems include the:

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

Segment information is often useful to investors for evaluating a company's profitability, risk, and growth.

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

All of the following statements regarding internal control procedures are true except:

What is the segment return on assets ratio? What is it used for?

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

The difference in the sales journal between the perpetual and periodic inventory systems is that a column is used to record cost of goods sold and inventory amounts for each sale under the perpetual system but not the periodic system.

A company had cash sales of $24,000 (cost is $13,000). Identify the journal the transaction would be recorded in.

What is purpose of footing and crossfooting the column totals in special journals

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

_____________________________________ consist of people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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