Question 1

With on-line systems, all information storage should be off-line to protect the data.

Accepted Answer

A) True 
 B)False

Question 2

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual 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 3

A procedure called direct posting of sales invoices can substitute for the sales journal.

Accepted Answer

A) True 
 B)False

Question 4

Posting debits from the Sales journal to Accounts Receivable twice - once to the general ledger account Accounts Receivable and once to the customer's subsidiary account - violates the accounting equation of debits equal credits.

Accepted Answer

A) True 
 B)False

Question 5

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

The answer of A ____________________ is a part of a...

Question 7

An advantage of online processing is up-to-date databases.

Accepted Answer

A) True 
 B)False

Question 8

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Accepted Answer

The answer of The _____________________ principle requires that an accounting...

Question 9

Discuss how technology based information systems affect accounting

Accepted Answer

Technology based information systems hav

Question 10

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Accepted Answer

A) True 
 B)False

Question 11

A log that is used to record and post transactions of a similar type is a:

Accepted Answer

A)  Schedule. 
B)  Columnar ledger. 
C)  Special journal. 
D)  General journal. 
E)  Subsidiary ledger. 
A)  Schedule. 
B)  Columnar ledger. 
C)  Special journal. 
D)  General journal. 
E)  Subsidiary ledger.

Question 12

When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

Accepted Answer

A) True 
 B)False

Question 13

The __________________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Accepted Answer

The answer of The __________________ principle requires that the benefits...

Question 14

After posting is completed, there may be an error if:

Accepted Answer

A)  The sum of the customer account balances does not equal the total in the sales journal. 
B)  The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
C)  The sum of the customer account balances does not equal the general ledger Accounts Receivable controlling account balance. 
D)  The balance in the sales journal does not equal the Accounts Receivable account balance. 
E)  The sum of the accounts receivable ledger does not equal the balance in the sales journal. 
A)  The sum of the customer account balances does not equal the total in the sales journal. 
B)  The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
C)  The sum of the customer account balances does not equal the general ledger Accounts Receivable controlling account balance. 
D)  The balance in the sales journal does not equal the Accounts Receivable account balance. 
E)  The sum of the accounts receivable ledger does not equal the balance in the sales journal.

Question 15

List the five basic principles of accounting information systems.

Accepted Answer

Accounting information systems

Question 16

Kim Jordan, founder of New Belgium Brewing Company, knew that accounting systems were important for success. Explain how Kim used an accounting system to assess business operations?

Accepted Answer

Kim set up an accounting system to measu

Question 17

To be sure that total debits and credits in a columnar journal are equal, before posting we should:

Accepted Answer

A)  Crossfoot. 
B)  Foot. 
C)  Journalize. 
D)  Post. 
E)  Reconcile. 
A)  Crossfoot. 
B)  Foot. 
C)  Journalize. 
D)  Post. 
E)  Reconcile.

Question 18

The flexibility principle of accounting information systems prescribes that the:

Accepted Answer

A)  Benefits from an activity outweigh the costs of the activity. 
B)  System report useful, understandable, timely, and pertinent information for effective decision making. 
C)  System aid managers in controlling and monitoring business activities. 
D)  System be able to adapt to changes in the company, business environment, and needs of decision makers. 
E)  System conforms to a company's activities, personnel, and structure. 
A)  Benefits from an activity outweigh the costs of the activity. 
B)  System report useful, understandable, timely, and pertinent information for effective decision making. 
C)  System aid managers in controlling and monitoring business activities. 
D)  System be able to adapt to changes in the company, business environment, and needs of decision makers. 
E)  System conforms to a company's activities, personnel, and structure.

Question 19

The five fundamental principles of accounting information systems are:

Accepted Answer

A)  Control, accountability, relevance, compatibility, and flexibility. 
B)  Historical cost, relevance, compatibility, flexibility, and cost-benefit. 
C)  Control, relevance, compatibility, flexibility, and safety. 
D)  Control, relevance, compatibility, timeliness, and cost-benefit. 
E)  Control, relevance, compatibility, flexibility, and cost-benefit. 
A)  Control, accountability, relevance, compatibility, and flexibility. 
B)  Historical cost, relevance, compatibility, flexibility, and cost-benefit. 
C)  Control, relevance, compatibility, flexibility, and safety. 
D)  Control, relevance, compatibility, timeliness, and cost-benefit. 
E)  Control, relevance, compatibility, flexibility, and cost-benefit.

Question 20

____________________ is the accounting system component that keeps data in a form accessible to information processors.

Accepted Answer

The answer of ____________________ is the accounting system component that...

Exam 7: Accounting Information Systems

With on-line systems, all information storage should be off-line to protect the data.

A procedure called direct posting of sales invoices can substitute for the sales journal.

Posting debits from the Sales journal to Accounts Receivable twice - once to the general ledger account Accounts Receivable and once to the customer's subsidiary account - violates the accounting equation of debits equal credits.

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

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

An advantage of online processing is up-to-date databases.

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Discuss how technology based information systems affect accounting

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

A log that is used to record and post transactions of a similar type is a:

When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

The __________________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

After posting is completed, there may be an error if:

List the five basic principles of accounting information systems.

Kim Jordan, founder of New Belgium Brewing Company, knew that accounting systems were important for success. Explain how Kim used an accounting system to assess business operations?

To be sure that total debits and credits in a columnar journal are equal, before posting we should:

The flexibility principle of accounting information systems prescribes that the:

The five fundamental principles of accounting information systems are:

____________________ is the accounting system component that keeps data in a form accessible to information processors.

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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