Question 1

For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:

Accepted Answer

A)  Column totals would continue to be posted as usual. 
B)  A Sales Taxes Payable credit column would be added. 
C)  There would be a separate Accounts Receivable debit column. 
D)  A Sales Taxes Payable debit column would be added. 
E)  There would be a separate Sales credit column. 
A)  Column totals would continue to be posted as usual. 
B)  A Sales Taxes Payable credit column would be added. 
C)  There would be a separate Accounts Receivable debit column. 
D)  A Sales Taxes Payable debit column would be added. 
E)  There would be a separate Sales credit column.

Question 2

Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers.

Accepted Answer

A) True 
 B)False

Question 3

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual 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 4

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Accepted Answer

A) True 
 B)False

Question 5

Individual transactions in the sales journal are regularly posted to customer accounts in the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The flexibility principle of accounting information systems prescribes 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 aid managers in controlling and monitoring business activities. 
D)  System be able to adapt 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 aid managers in controlling and monitoring business activities. 
D)  System be able to adapt to changes in the company, business environment, and needs of decision makers. 
E)  System conforms to a company's activities, personnel, and structure.

Question 8

The accounts receivable ledger:

Accepted Answer

A)  Is for storing transaction data for customers. 
B)  Is for storing transaction data for individual customers. 
C)  Is for storing transaction data for individual creditors. 
D)  Is for storing transaction date for creditors. 
E)  Is also the controlling account. 
A)  Is for storing transaction data for customers. 
B)  Is for storing transaction data for individual customers. 
C)  Is for storing transaction data for individual creditors. 
D)  Is for storing transaction date for creditors. 
E)  Is also the controlling account.

Question 9

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

Accepted Answer

The answer of Outdoors Unlimited uses special journals to record...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The following information is available for AllBev, Inc. (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?
c. What measures could be taken to improve segment return?

Accepted Answer

a.
b. America is the most profitable, fo

Question 12

A subsidiary ledger is a listing of individual accounts with a common characteristic.

Accepted Answer

A) True 
 B)False

Question 13

Enterprise-resource planning software:

Accepted Answer

A)  Refers to programs that help manage a company's vital operations. 
B)  Is another name for spreadsheet programs. 
C)  Uses batch processing of business information. 
D)  Is substantially declining in use. 
E)  Is another name for database programs. 
A)  Refers to programs that help manage a company's vital operations. 
B)  Is another name for spreadsheet programs. 
C)  Uses batch processing of business information. 
D)  Is substantially declining in use. 
E)  Is another name for database programs.

Question 14

A record that contains all accounts (with amounts) of a company is the:

Accepted Answer

A)  General ledger. 
B)  General journal. 
C)  Special ledger. 
D)  Special journal. 
E)  Column balance ledger. 
A)  General ledger. 
B)  General journal. 
C)  Special ledger. 
D)  Special journal. 
E)  Column balance ledger.

Question 15

______________________ provide the basic information processed by an accounting system, and can include bank statements, billings to customers, and employee earnings records.

Accepted Answer

The answer of ______________________ provide the basic information processed by...

Question 16

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Accepted Answer

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

Question 17

Match the following terms with the appropriate definitions.
Cash receipts journal:;The special journal that is used to record all receipts of cash.
Segment return on assets:A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 18

Information storage:

Accepted Answer

A)  Eliminates the need for professional judgment. 
B)  Keeps data in a form accessible to information processors. 
C)  Provides the basic information processed by an accounting system. 
D)  Captures information from source documents. 
E)  Cannot be online. 
A)  Eliminates the need for professional judgment. 
B)  Keeps data in a form accessible to information processors. 
C)  Provides the basic information processed by an accounting system. 
D)  Captures information from source documents. 
E)  Cannot be online.

Question 19

To check for accuracy after posting: first a trial balance is completed, then, the subsidiary ledgers are tested by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Question 20

A company entered into the following transactions. For each transaction, indicate the appropriate journal.

Accepted Answer

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

Exam 7: Accounting Information Systems

For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:

Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers.

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Individual transactions in the sales journal are regularly posted to customer accounts in the accounts payable ledger.

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

The flexibility principle of accounting information systems prescribes that the:

The accounts receivable ledger:

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

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

A subsidiary ledger is a listing of individual accounts with a common characteristic.

Enterprise-resource planning software:

A record that contains all accounts (with amounts) of a company is the:

______________________ provide the basic information processed by an accounting system, and can include bank statements, billings to customers, and employee earnings records.

The _____________________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.

Match the following terms with the appropriate definitions. Cash receipts journal:;The special journal that is used to record all receipts of cash. Segment return on assets:A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.

Information storage:

To check for accuracy after posting: first a trial balance is completed, then, the subsidiary ledgers are tested by preparing a schedule of the controlling account.

A company entered into the following transactions. For each transaction, indicate the appropriate journal.

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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