Question 1

A company received payment of $9,800 from a customer within the discount period. 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 2

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 3

The following special journal is taken from a merchandising company that uses the perpetual inventory system:
1. What is the name of the journal shown above?
2. Write an explanation for each entry in this journal.
3. What do the numbers in parentheses at the bottom of the journal indicate?

Accepted Answer

1. This is a cash receipts journal (perp

Question 4

What is the segment return on assets ratio? What is it used for?

Accepted Answer

The segment return on assets is segment

Question 5

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 6

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.
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 balance on May 1.

Accepted Answer

The answer of Williams Company began business on May 1....

Question 7

The SAP enterprise-resource planning software is already being used to help direct the operations of many of the world's largest companies.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

The purchases journal is used for recording:

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

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.

Accepted Answer

The answer of Williams Company began business on May 1....

Question 13

External users of financial statements are generally uninterested in segment information to understand a company's business activities.

Accepted Answer

A) True 
 B)False

Question 14

___________________ processing enters and processes data as soon as source documents are available.

Accepted Answer

The answer of ___________________ processing enters and processes data as...

Question 15

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic 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 16

Two common subsidiary ledgers are cash receipts and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 17

______________________ capture information from source documents and enable its transfer to the system's information processing component.

Accepted Answer

The answer of ______________________ capture information from source documents and...

Question 18

The segment return on assets:

Accepted Answer

A)  Can only be determined for international companies. 
B)  Reflects the profitability of a segment. 
C)  Is difficult to calculate because companies with traded stock are not required to report segment information. 
D)  Is calculated as segment average assets divided by segment operating income. 
E)  Is calculated as segment sales divided by segment average assets. 
A)  Can only be determined for international companies. 
B)  Reflects the profitability of a segment. 
C)  Is difficult to calculate because companies with traded stock are not required to report segment information. 
D)  Is calculated as segment average assets divided by segment operating income. 
E)  Is calculated as segment sales divided by segment average assets.

Question 19

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 20

Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

A company received payment of $9,800 from a customer within the discount period. Identify the journal the transaction would be recorded in.

The five fundamental principles of accounting information systems are:

The following special journal is taken from a merchandising company that uses the perpetual inventory system: 1. What is the name of the journal shown above? 2. Write an explanation for each entry in this journal. 3. What do the numbers in parentheses at the bottom of the journal indicate?

What is the segment return on assets ratio? What is it used for?

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

The SAP enterprise-resource planning software is already being used to help direct the operations of many of the world's largest companies.

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.

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

The purchases journal is used for recording:

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

External users of financial statements are generally uninterested in segment information to understand a company's business activities.

___________________ processing enters and processes data as soon as source documents are available.

Two common subsidiary ledgers are cash receipts and cash disbursements.

______________________ capture information from source documents and enable its transfer to the system's information processing component.

The segment return on assets:

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

Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements.

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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