Question 1

Match between columns
                        Premises: A journal used to record sales of merchandise on credit.
A special journal used to record all payments of cash.
A journal with more than one column for recording data.
A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.
A general ledger account, the balance of which, after posting, equals the sum of the balances of the accounts in its related subsidiary ledger.
A journal used to record all purchases on credit.
A record of the separate accounts of each credit customer that is controlled by a general ledger account.
The special journal used to record all receipts of cash.
Any journal used for recording and posting transactions of a similar type.
A list of each customer from the accounts payable ledger with their balances and the total.

Accepted Answer

The Answer of Accounts receivable ledger and Sales journal and is...

Question 2

Discuss how technology based information systems affect accounting.

Accepted Answer

Technology based information systems have increased the speed, accuracy and efficiency of performing accounting tasks. Moreover, information for business decision making is provided in a more timely fashion than with manual systems. Technology based systems can also help account for complex business structures and transactions. Enterprise resource planning software can further unify complex accounting systems and support the management decision making process.

Question 3

Which of the following is not an output device?

Accepted Answer

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

Question 4

A company would use which of the following journals to record cash payments?

Accepted Answer

A) General journal. 
B) Sales journal. 
C) Cash disbursements journal. 
D) Cash receipts journal. 
E) Purchases journal. 
A) General journal. 
B) Sales journal. 
C) Cash disbursements journal. 
D) Cash receipts journal. 
E) Purchases journal.

Question 5

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

Accepted Answer

A) True 
 B)False

Question 6

The flexibility principle of accounting information systems prescribes that the:

Accepted Answer

A) System conforms to a company's activities, personnel, and structure. 
B) System aid managers in controlling and monitoring business activities. 
C) System report useful, understandable, timely, and pertinent information for effective decision making. 
D) Benefits from an activity in the system outweigh the costs of the activity. 
E) System be able to adapt to changes in the company, business environment, and needs of decision makers. 
A) System conforms to a company's activities, personnel, and structure. 
B) System aid managers in controlling and monitoring business activities. 
C) System report useful, understandable, timely, and pertinent information for effective decision making. 
D) Benefits from an activity in the system outweigh the costs of the activity. 
E) System be able to adapt to changes in the company, business environment, and needs of decision makers.

Question 7

The purchases journal is typically used to record only purchases of inventory.

Accepted Answer

A) True 
 B)False

Question 8

A subsidiary ledger:

Accepted Answer

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

Question 9

Which of the following statements is not true regarding internal control procedures?

Accepted Answer

A) Internal control procedures include methods to achieve compliance with laws and regulations. 
B) Internal control procedures direct operations toward common goals. 
C) Internal control procedures are designed to safeguard company assets. 
D) Internal control procedures are not affected by the cost-benefit principle. 
E) Internal control procedures are designed to ensure reliable financial reports. 
A) Internal control procedures include methods to achieve compliance with laws and regulations. 
B) Internal control procedures direct operations toward common goals. 
C) Internal control procedures are designed to safeguard company assets. 
D) Internal control procedures are not affected by the cost-benefit principle. 
E) Internal control procedures are designed to ensure reliable financial reports.

Question 10

List the five basic components of accounting information systems and give an example of each.

Accepted Answer

The five basic components of accounting

Question 11

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

Accepted Answer

A) Direct posting journal. 
B) Cash disbursements journal. 
C) Cash receipts journal. 
D) General journal. 
E) Sales journal. 
A) Direct posting journal. 
B) Cash disbursements journal. 
C) Cash receipts journal. 
D) General journal. 
E) Sales journal.

Question 12

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system, th

Question 13

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Accepted Answer

A) When the creditors receive their payments. 
B) When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C) When the purchases journal is posted to the general ledger. 
D) When the financial statements are prepared. 
E) When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account. 
A) When the creditors receive their payments. 
B) When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C) When the purchases journal is posted to the general ledger. 
D) When the financial statements are prepared. 
E) When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.

Question 14

Subsidiary ledgers do all of the following except:

Accepted Answer

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

Question 15

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Accepted Answer

A) Flexibility principle. 
B) Relevance principle. 
C) Compatibility principle. 
D) Cost-Benefit principle. 
E) Control principle. 
A) Flexibility principle. 
B) Relevance principle. 
C) Compatibility principle. 
D) Cost-Benefit principle. 
E) Control principle.

Question 16

Due to electronic files and Web communications, source documents are no longer required.

Accepted Answer

A) True 
 B)False

Question 17

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Accepted Answer

To foot a column of numbers is to add it

Question 18

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

Accepted Answer

A) Credit purchases. 
B) Closing entries. 
C) Sales on credit. 
D) Credit sales. 
E) Cash payments. 
A) Credit purchases. 
B) Closing entries. 
C) Sales on credit. 
D) Credit sales. 
E) Cash payments.

Question 19

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Accepted Answer

A) Cash disbursements journal. 
B) Purchases journal. 
C) Cash receipts journal. 
D) Sales journal. 
E) General journal. 
A) Cash disbursements journal. 
B) Purchases journal. 
C) Cash receipts journal. 
D) Sales journal. 
E) General journal.

Question 20

Which of the following journals would a company use to record a merchandise return?

Accepted Answer

A) General journal. 
B) Purchases journal. 
C) Cash disbursements journal. 
D) Cash receipts journal. 
E) Sales journal. 
A) General journal. 
B) Purchases journal. 
C) Cash disbursements journal. 
D) Cash receipts journal. 
E) Sales journal.

Discuss how technology based information systems affect accounting.

Which of the following is not an output device?

A company would use which of the following journals to record cash payments?

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

The flexibility principle of accounting information systems prescribes that the:

The purchases journal is typically used to record only purchases of inventory.

A subsidiary ledger:

Which of the following statements is not true regarding internal control procedures?

List the five basic components of accounting information systems and give an example of each.

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

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Subsidiary ledgers do all of the following except:

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Due to electronic files and Web communications, source documents are no longer required.

What is footing and crossfooting of the column totals in special journals? What is the purpose?

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

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Which of the following journals would a company use to record a merchandise return?

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

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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Exam 7: Accounting Information Systems

Discuss how technology based information systems affect accounting.

Which of the following is not an output device?

A company would use which of the following journals to record cash payments?

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

The flexibility principle of accounting information systems prescribes that the:

The purchases journal is typically used to record only purchases of inventory.

A subsidiary ledger:

Which of the following statements is not true regarding internal control procedures?

List the five basic components of accounting information systems and give an example of each.

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

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Subsidiary ledgers do all of the following except:

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Due to electronic files and Web communications, source documents are no longer required.

What is footing and crossfooting of the column totals in special journals? What is the purpose?

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

Which of the following journals would a company use to record period-end adjusting entries to accrue revenues?

Which of the following journals would a company use to record a merchandise return?

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

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Filters