Question 1

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 2

Using __________________ ledgers removes unnecessary details from the general ledger.

Accepted Answer

The answer of Using __________________ ledgers removes unnecessary details from...

Question 3

An advantage of online processing is up-to-date databases.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Most companies use batch processing instead of online processing because batch processing immediately updates databases.

Accepted Answer

A) True 
 B)False

Question 6

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Accepted Answer

A) True 
 B)False

Question 7

A sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Question 8

The __________________ principle requires that an accounting information system report useful, understandable, timely, and pertinent information for effective decision making.

Accepted Answer

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

Question 9

All of the following statements regarding source documents are except:

Accepted Answer

A)  Source documents provide the basic information processed by an accounting system. 
B)  Source documents include bank statements, cash register files, and employee earnings records. 
C)  Source documents are insignificant and play a minor role in the reliability of the information system. 
D)  Source documents can be paper or electronic files. 
E)  Source documents can include Web communications. 
A)  Source documents provide the basic information processed by an accounting system. 
B)  Source documents include bank statements, cash register files, and employee earnings records. 
C)  Source documents are insignificant and play a minor role in the reliability of the information system. 
D)  Source documents can be paper or electronic files. 
E)  Source documents can include Web communications.

Question 10

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

Accepted Answer

A)  49.4% 
B)  69.0% 
C)  71.6% 
D)  139.7% 
E)  144.8% 
A)  49.4% 
B)  69.0% 
C)  71.6% 
D)  139.7% 
E)  144.8%

Question 11

A company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. A perpetual inventory system is used. The following transactions were completed by the company during the current month of October:
Record these transactions in the appropriate journal shown below.

Accepted Answer

The answer of A company uses a sales journal, purchases...

Question 12

A company sold merchandise on credit for $5,000 (cost is $2,400). 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 13

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 14

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 15

The main difference in the sales journal under the perpetual and periodic inventory system is:

Accepted Answer

A)  The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic. 
B)  The sales tax receivable column that is used under the perpetual system but not the periodic. 
C)  The sales tax payable column that is used under the perpetual system but not the periodic. 
D)  The accounts receivable column that is used under the perpetual system but not the periodic. 
E)  The column for recording cash that is used under the perpetual system but not the periodic. 
A)  The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic. 
B)  The sales tax receivable column that is used under the perpetual system but not the periodic. 
C)  The sales tax payable column that is used under the perpetual system but not the periodic. 
D)  The accounts receivable column that is used under the perpetual system but not the periodic. 
E)  The column for recording cash that is used under the perpetual system but not the periodic.

Question 16

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

Accepted Answer

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

Question 17

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 18

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Accepted Answer

A) True 
 B)False

Question 19

Output devices include all of the following except:

Accepted Answer

A)  Printers. 
B)  Monitors. 
C)  LCD projectors. 
D)  Web communications. 
E)  Bar code readers. 
A)  Printers. 
B)  Monitors. 
C)  LCD projectors. 
D)  Web communications. 
E)  Bar code readers.

Question 20

When a company uses special journals, the general journal is used for selected transactions and events including:

Accepted Answer

A)  Recording adjusting transactions. 
B)  Posting transactions to special journals. 
C)  Accumulating debits and credits. 
D)  Collecting detailed listings of amounts. 
E)  Recording cash receipts. 
A)  Recording adjusting transactions. 
B)  Posting transactions to special journals. 
C)  Accumulating debits and credits. 
D)  Collecting detailed listings of amounts. 
E)  Recording cash receipts.

Exam 7: Accounting Information Systems

A columnar journal is any journal with only one column.

Using __________________ ledgers removes unnecessary details from the general ledger.

An advantage of online processing is up-to-date databases.

The sales journal is used for recording:

Most companies use batch processing instead of online processing because batch processing immediately updates databases.

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

A sales journal is used to record cash sales.

The __________________ principle requires that an accounting information system report useful, understandable, timely, and pertinent information for effective decision making.

All of the following statements regarding source documents are except:

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

A company sold merchandise on credit for $5,000 (cost is $2,400). Identify the journal the transaction would be recorded in.

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

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

The main difference in the sales journal under the perpetual and periodic inventory system is:

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

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

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Output devices include all of the following except:

When a company uses special journals, the general journal is used for selected transactions and events including:

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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