Exam 7: Accounting Information Systems

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale. This column is used in the perpetual system but not in the periodic.

The main difference in the sales journal under the perpetual and periodic inventory system is:

A company using the periodic inventory system does not record the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

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. a. Use the purchases journal and the cash disbursements journal to record these transactions. b. Prepare a schedule of accounts payable. There was no accounts payable on May 1.

The purchases journal is used for recording:

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n):

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

The accounts payable ledger has a controlling account in the general ledger and a separate subsidiary account for each creditor in the accounts payable ledger.

The following information is available for AllBev, Inc. (all amounts are in millions):

Using __________________ ledgers removes unnecessary details from the general ledger.

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

Information processors:

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

Individual transactions in the sales journal are posted regularly to customers' accounts in the _______________________________________.

A __________________ journal is used to record and post transactions of similar type.

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

Two common subsidiary ledgers are cash receipts and cash disbursements.

All of the following statements regarding source documents are true except:

Output devices include all of the following except:

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.