Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The Accounts Payable account in the general ledger is:

Accepted Answer

A)  A controlling account for the subsidiary accounts payable ledger. 
B)  The account that controls the purchases journal. 
C)  The subsidiary account to the purchases journal. 
D)  Part of a special journal. 
E)  Part of a subsidiary ledger. 
A)  A controlling account for the subsidiary accounts payable ledger. 
B)  The account that controls the purchases journal. 
C)  The subsidiary account to the purchases journal. 
D)  Part of a special journal. 
E)  Part of a subsidiary ledger.

Question 3

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...

Question 4

The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

Accepted Answer

Segment re

Question 5

What are the five basic components of accounting information systems

Accepted Answer

The five basic components of a

Question 6

Subsidiary ledgers do all of the following except:

Accepted Answer

A)  Remove excessive detail from the general ledger. 
B)  Provide up-to-date information on customer or other specific account balances. 
C)  Aid in error identification for individual accounts. 
D)  Help with division of labor (recordkeeping tasks). 
E)  Eliminate the need for individual postings to the customer or supplier accounts. 
A)  Remove excessive detail from the general ledger. 
B)  Provide up-to-date information on customer or other specific account balances. 
C)  Aid in error identification for individual accounts. 
D)  Help with division of labor (recordkeeping tasks). 
E)  Eliminate the need for individual postings to the customer or supplier accounts.

Question 7

The __________________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

Accepted Answer

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

Question 8

An accounts payable ledger is:

Accepted Answer

A)  A subsidiary ledger that contains an account for each supplier (creditor). 
B)  A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specific type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company. 
A)  A subsidiary ledger that contains an account for each supplier (creditor). 
B)  A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specific type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

Question 9

Describe the posting process for special journals.

Accepted Answer

Posting to special journals is a three-s

Question 10

A procedure called direct posting of sales invoices can substitute for the sales journal.

Accepted Answer

A) True 
 B)False

Question 11

A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n):

Accepted Answer

A)  Schedule of accounts. 
B)  Controlling account. 
C)  Schedule of accounts receivable. 
D)  Subsidiary ledger. 
E)  Special journal. 
A)  Schedule of accounts. 
B)  Controlling account. 
C)  Schedule of accounts receivable. 
D)  Subsidiary ledger. 
E)  Special journal.

Question 12

When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

Accepted Answer

A) True 
 B)False

Question 13

All of the following statements regarding internal control procedures are except:

Accepted Answer

A)  Internal control procedures are designed to ensure reliable financial reports. 
B)  Internal control procedures are designed to safeguards company assets. 
C)  Internal control procedures direct operations toward common goals. 
D)  Internal control procedures include methods to achieve compliance with laws and regulation. 
E)  Internal control procedures are bit affected by the cost-benefit principle. 
A)  Internal control procedures are designed to ensure reliable financial reports. 
B)  Internal control procedures are designed to safeguards company assets. 
C)  Internal control procedures direct operations toward common goals. 
D)  Internal control procedures include methods to achieve compliance with laws and regulation. 
E)  Internal control procedures are bit affected by the cost-benefit principle.

Question 14

_______________________________________ refers to the programs that help managers direct a company's vital operations.

Accepted Answer

Enterprise

Question 15

Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions:
a. Foot and crossfoot the journal for accuracy.
b. Identify the error and indicate how to correct the error.
c. When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable. What is the most likely cause and how should it be corrected?

Accepted Answer

a.
b. The May 8 purchase from Steve Co.

Question 16

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 17

An accounts receivable ledger is:

Accepted Answer

A)  A subsidiary ledger that contains an account for each credit customer. 
B)  A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specified type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each creditor (supplier) to the company. 
A)  A subsidiary ledger that contains an account for each credit customer. 
B)  A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding. 
C)  A book of original entry that is designed and used for recording only a specified type of transaction. 
D)  The ledger that contains the financial statement accounts of a business. 
E)  A subsidiary ledger that contains a separate account for each creditor (supplier) to the company.

Question 18

A company issued a check for $7,900 in payment of the salaries expense for the last half of the month. 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

Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:

Accepted Answer

A)  Sales journal. 
B)  General journal. 
C)  Cash receipts journal. 
D)  Accounts receivable ledger. 
E)  Cash disbursements journal. 
A)  Sales journal. 
B)  General journal. 
C)  Cash receipts journal. 
D)  Accounts receivable ledger. 
E)  Cash disbursements journal.

Question 20

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

Accepted Answer

The answer of A __________________ journal is used to record...

Exam 7: Accounting Information Systems

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

The Accounts Payable account in the general ledger is:

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.

The _______________________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

What are the five basic components of accounting information systems

Subsidiary ledgers do all of the following except:

The __________________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

An accounts payable ledger is:

Describe the posting process for special journals.

A procedure called direct posting of sales invoices can substitute for the sales journal.

A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n):

When posting from special journals each debit and credit entry is entered as a separate amount in the general ledger.

All of the following statements regarding internal control procedures are except:

_______________________________________ refers to the programs that help managers direct a company's vital operations.

The control principle for accounting information systems requires that the:

An accounts receivable ledger is:

A company issued a check for $7,900 in payment of the salaries expense for the last half of the month. Identify the journal the transaction would be recorded in.

Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:

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

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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