Question 1

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 2

Special journals allow an efficient division of labor, which is also an effective control procedure.

Accepted Answer

A) True 
 B)False

Question 3

A company purchased $11,200 of merchandise 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 4

The purchases journal is identical under both the periodic and the perpetual inventory systems.

Accepted Answer

A) True 
 B)False

Question 5

____________________ are the means to take information out of an accounting system and make it available to users.

Accepted Answer

The answer of ____________________ are the means to take information...

Question 6

__________________ processing accumulates source documents for a period of time and then processes them all at once such as daily, weekly, or monthly.

Accepted Answer

The answer of __________________ processing accumulates source documents for a...

Question 7

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 8

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 B

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 9

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

Accepted Answer

The two-step procedure begins after the

Question 10

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 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

a. Yazoo 6,900 - 6,900 =0
Barg

Question 12

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

Accepted Answer

Informatio

Question 13

The use of an Accounts Payable controlling account:

Accepted Answer

A)  Reduces the number of accounts in the subsidiary ledger. 
B)  Reduces the total number of accounts maintained. 
C)  Reduces the number of entries in the general journals. 
D)  Reduces the number of accounts in the general ledger. 
E)  Increases the number of columns in the journals. 
A)  Reduces the number of accounts in the subsidiary ledger. 
B)  Reduces the total number of accounts maintained. 
C)  Reduces the number of entries in the general journals. 
D)  Reduces the number of accounts in the general ledger. 
E)  Increases the number of columns in the journals.

Question 14

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Accepted Answer

A) True 
 B)False

Question 15

Input devices are the means to make accounting information available to users.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  Accounting information systems consist of people, records, methods, and equipment. 
B)  Accounting information systems have the same goals and share basic components. 
C)  Accounting information systems are less important than ever to decision makers. 
D)  Accounting information systems are designed to provide output including financial, managerial, and tax reports. 
E)  Accounting information systems are designed to capture information about a company's transactions. 
A)  Accounting information systems consist of people, records, methods, and equipment. 
B)  Accounting information systems have the same goals and share basic components. 
C)  Accounting information systems are less important than ever to decision makers. 
D)  Accounting information systems are designed to provide output including financial, managerial, and tax reports. 
E)  Accounting information systems are designed to capture information about a company's transactions.

Question 17

Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 18

The accounts payable ledger is used for storing transactions data regarding individual customers.

Accepted Answer

A) True 
 B)False

Question 19

The flexibility principle prescribes that an accounting information system conform with a company's activities, personnel, and structure and adapt to a company's unique characteristics.

Accepted Answer

A) True 
 B)False

Question 20

Due to electronic files and Web communications, source documents are no longer required.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

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

Special journals allow an efficient division of labor, which is also an effective control procedure.

A company purchased $11,200 of merchandise on credit. Identify the journal the transaction would be recorded in.

The purchases journal is identical under both the periodic and the perpetual inventory systems.

____________________ are the means to take information out of an accounting system and make it available to users.

__________________ processing accumulates source documents for a period of time and then processes them all at once such as daily, weekly, or monthly.

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.

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

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

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

The use of an Accounts Payable controlling account:

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Input devices are the means to make accounting information available to users.

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

Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger.

The accounts payable ledger is used for storing transactions data regarding individual customers.

The flexibility principle prescribes that an accounting information system conform with a company's activities, personnel, and structure and adapt to a company's unique characteristics.

Due to electronic files and Web communications, source documents are no longer required.

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

Filters