Exam 7: Accounting Information Systems

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Accounting information processes are structured to eliminate the need for professional judgment.

An accounts receivable ledger is a:

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

The control principle for accounting information systems requires that the:

When posting the sales journal's activity at the end of the month, its totals are:

When posting from special journals, each individual debit and credit entry of similar transactions is entered in the general ledger.

The accounts receivable ledger is used for storing transactions data regarding individual customers.

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

A subsidiary ledger that contains a separate account for each supplier (creditor)to the company is a(n):

An advantage of online processing is that databases are updated in batches.

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Enterprise resource planning software is primarily used for recording journal entries.

The five fundamental principles of accounting information systems are:

Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period. Identify the journal the transaction would be recorded in:

Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger.

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

A company that reports segment information had average total assets of $1,522,450 and total net income of $590,700. Segment A had average total assets of $927,800 and segment operating income of $298,300. Segment B had average assets of $594,650 and segment operating income of $292,400. The segment return on assets for Segment B is:

Three transactions that would be recorded in the sales journal are: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchases discounts.

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