Exam 7: Accounting Information Systems

Alex Reagent, owner of Delectable Candy Company, understands that accounting systems are important for success. Explain how Alex can use the accounting system to assess business operations.

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

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

Two common subsidiary ledgers are cash receipts and cash disbursements.

If a company purchases $15,200 of merchandise on credit, which journal will the transaction be recorded in?

Alani's Hawaiian segment had revenues of $2,075 million, operating income of $1,500 million, and average assets of $1,450 million. The Hawaiian segment return on assets is:

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

Segment information is not helpful to investors for evaluating a company's profitability, risk, or growth.

The accounts receivable ledger:

Input devices are the means to make accounting information available to users.

A procedure called direct posting of sales invoices involves posting sales directly to the customer accounts in the accounts receivable ledger, making a period end journal entry, and avoiding the use of the sales journal.

If the total balance of the accounts payable ledger equals the total of the controlling Accounts Payable account, then the accounts are presumed to be correct.

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

A company makes a payment of $5,000 on a long-term note payable. The journal the transaction would be recorded in is the:

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000. Two days later Doughton returned $2,000 of the merchandise due to damage. When Doughton pays for the merchandise minus the return, it would record the payment in the:

Enterprise-resource planning software:

A business segment is a part of a company that is separately identified by its products or services, or by the geographic market it serves.

Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale. The cost of the birdseed was $370. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal that the transaction would be recorded in is the:

List the five basic principles of accounting information systems.