Question 1

Source documents:

Accepted Answer

A)  Are input devices. 
B)  Provide the basic information processed by an accounting system. 
C)  Cannot be electronic files. 
D)  Store processed information for future use. 
E)  Cannot be paper documents. 
A)  Are input devices. 
B)  Provide the basic information processed by an accounting system. 
C)  Cannot be electronic files. 
D)  Store processed information for future use. 
E)  Cannot be paper documents.

Question 2

Explain the purposes, types, and uses of special journals

Accepted Answer

Special journals are used for recording

Question 3

A company had average total assets of $982,450 and net income of $190,700, and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment A

Accepted Answer

A)  19.4%. 
B)  22.4%. 
C)  26.1%. 
D)  10.7%. 
A)  19.4%. 
B)  22.4%. 
C)  26.1%. 
D)  10.7%.

Question 4

List the five basic principles of accounting information systems.

Accepted Answer

Accounting information systems

Question 5

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 6

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

a.
b. Latin America

Question 9

A __________________ is an all-purpose journal that can record any transaction.

Accepted Answer

The answer of A __________________ is an all-purpose journal that...

Question 10

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Accepted Answer

A) True 
 B)False

Question 11

Identify the accounting information system principle below that applies to each of these situations.

Accepted Answer

The answer of Identify the accounting information system principle below...

Question 12

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Discuss how technology based information systems affect accounting

Accepted Answer

Technology based information systems hav

Question 15

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 16

All of the following statements regarding input devices are 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 17

A company entered into the following transactions. Match each transaction with the appropriate journal.

Accepted Answer

The answer of A company entered into the following transactions....

Question 18

A company borrowed $50,000 from a bank by signing a long-term note payable. 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 19

All of the following statements regarding accounting information systems are 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 20

Enterprise resource planning software is primarily used for recording journal entries.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Source documents:

Explain the purposes, types, and uses of special journals

List the five basic principles of accounting information systems.

The special journals of many accounting systems include the:

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

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

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 __________________ is an all-purpose journal that can record any transaction.

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Identify the accounting information system principle below that applies to each of these situations.

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

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.

Discuss how technology based information systems affect accounting

A business segment:

All of the following statements regarding input devices are except:

A company entered into the following transactions. Match each transaction with the appropriate journal.

A company borrowed $50,000 from a bank by signing a long-term note payable. Identify the journal the transaction would be recorded in.

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

Enterprise resource planning software is primarily used for recording journal entries.

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

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

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

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