Question 1

An approach that enters and processes data as soon as source documents are available is called:

Accepted Answer

A)  Date storage. 
B)  Batch processing. 
C)  Online processing. 
D)  Computer programming 
E)  Web communications. 
A)  Date storage. 
B)  Batch processing. 
C)  Online processing. 
D)  Computer programming 
E)  Web communications.

Question 2

The following information is available for some of Kalo's segments (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?

Accepted Answer

The answer of The following information is available for some...

Question 3

A company uses four special journals: purchases, sales, cash receipts, and cash disbursements. The following transactions were incurred during August:   Record these transactions in the appropriate special journals below.

Accepted Answer

The answer of A company uses four special journals: purchases,...

Question 4

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

Accepted Answer

The two-step procedure begins after the

Question 5

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of Argon Sales uses special journals to record...

Question 6

_____________________ are systems that interpret, transform, and summarize information for use in analysis and reporting.

Accepted Answer

Informatio

Question 7

A company purchased equipment costing $32,000 on credit. 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 8

The basic components of an accounting information system include all of the following except:

Accepted Answer

A)  Source documents. 
B)  Warehouses. 
C)  Information processors. 
D)  Information storage. 
E)  Input devices. 
A)  Source documents. 
B)  Warehouses. 
C)  Information processors. 
D)  Information storage. 
E)  Input devices.

Question 9

The sales journal is used for recording:

Accepted Answer

A)  Credit purchases. 
B)  Credit sales. 
C)  Cash sales. 
D)  Cash purchases. 
E)  Cash receipts. 
A)  Credit purchases. 
B)  Credit sales. 
C)  Cash sales. 
D)  Cash purchases. 
E)  Cash receipts.

Question 10

The control principle for accounting information systems requires 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 must have internal controls. 
D)  System adapts 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 must have internal controls. 
D)  System adapts to changes in the company, business environment, and needs of decision makers. 
E)  System conforms to a company's activities, personnel, and structure.

Question 11

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.

Accepted Answer

The answer of Philip Company uses special journals to record...

Question 12

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Accepted Answer

A)  When the purchases journal is posted to the general ledger. 
B)  When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C)  When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account. 
D)  When the creditors receive their payments. 
E)  When the financial statements are prepared. 
A)  When the purchases journal is posted to the general ledger. 
B)  When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C)  When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account. 
D)  When the creditors receive their payments. 
E)  When the financial statements are prepared.

Question 13

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:

Accepted Answer

@#IMG-DLM& Record these transa

Question 14

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

@#IMG-DLM& a. Use the sales journal and

Question 16

A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of A company records its transactions and events...

Exam 7: Accounting Information Systems

An approach that enters and processes data as soon as source documents are available is called:

The following information is available for some of Kalo's segments (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?

A company uses four special journals: purchases, sales, cash receipts, and cash disbursements. The following transactions were incurred during August: Record these transactions in the appropriate special journals below.

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

_____________________ are systems that interpret, transform, and summarize information for use in analysis and reporting.

A company purchased equipment costing $32,000 on credit. Identify the journal the transaction would be recorded in.

The basic components of an accounting information system include all of the following except:

The sales journal is used for recording:

The control principle for accounting information systems requires that the:

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

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:

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

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 company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

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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