Question 1

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)  Is always in electronic format. 
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)  Is always in electronic format.

Question 2

The sales journal is used for recording:

Accepted Answer

A)  Credit purchases 
B)  Credit sales 
C)  Cash sales 
D)  Cash purchases 
E)  All Sales 
A)  Credit purchases 
B)  Credit sales 
C)  Cash sales 
D)  Cash purchases 
E)  All Sales

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

A company uses a cash receipts journal (periodic system) as shown below:   How would the following transactions be recorded in this cash receipts journal?
12/10 Sold merchandise to Cat Company for $7,500 cash (cost is $4,250)
12/11 Sold merchandise on credit to Dog, Inc, Invoice No. 852, for $4,000 (cost is $2,200) Terms are 2/10, n/30.

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Segment information is often useful to investors for evaluating a company's profitability, risk, and growth.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

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

Question 10

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Accepted Answer

A) True 
 B)False

Question 11

Information processors:

Accepted Answer

A)  Include information storage. 
B)  Interpret, transform, and summarize information for use in analysis and reporting. 
C)  Are components of an accounting system that keep data in accessible form. 
D)  Are the means to take information out of an accounting system and make it available to users. 
E)  Include scanners. 
A)  Include information storage. 
B)  Interpret, transform, and summarize information for use in analysis and reporting. 
C)  Are components of an accounting system that keep data in accessible form. 
D)  Are the means to take information out of an accounting system and make it available to users. 
E)  Include scanners.

Question 12

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 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 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 13

With online systems, all information storage should be off-line to protect the data.

Accepted Answer

A) True 
 B)False

Question 14

Equipment, inventory, and investments can each have its own subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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

Question 16

__________________ 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 17

A subsidiary ledger:

Accepted Answer

A)  Includes transactions not covered by special journals. 
B)  Is a listing of all of the accounts of a business. 
C)  Is a listing of individual accounts with a common characteristic. 
D)  Is also called a general ledger. 
E)  Is also called a special journal. 
A)  Includes transactions not covered by special journals. 
B)  Is a listing of all of the accounts of a business. 
C)  Is a listing of individual accounts with a common characteristic. 
D)  Is also called a general ledger. 
E)  Is also called a special journal.

Question 18

List the five basic principles of accounting information systems.

Accepted Answer

Accounting information systems

Question 19

The segment return on assets:

Accepted Answer

A)  Can only be determined for international companies. 
B)  Is a measure of 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)  Is a measure of 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 20

What are the five basic components of accounting information systems?

Accepted Answer

The five basic components of a

Information storage:

The sales journal is used for recording:

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:

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

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

Segment information is often useful to investors for evaluating a company's profitability, risk, and growth.

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

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Information processors:

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

With online systems, all information storage should be off-line to protect the data.

Equipment, inventory, and investments can each have its own subsidiary ledger.

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

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

A subsidiary ledger:

List the five basic principles of accounting information systems.

The segment return on assets:

What are the five basic components of accounting information systems?

Introducing Financial Accounting

Accounting for Transactions

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

Exam 17: Accounting With Special Journals

Information storage:

The sales journal is used for recording:

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:

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

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

Segment information is often useful to investors for evaluating a company's profitability, risk, and growth.

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

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Information processors:

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

With online systems, all information storage should be off-line to protect the data.

Equipment, inventory, and investments can each have its own subsidiary ledger.

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

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

A subsidiary ledger:

List the five basic principles of accounting information systems.

The segment return on assets:

What are the five basic components of accounting information systems?

Introducing Financial Accounting

Accounting for Transactions

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters