Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The controlling account, Accounts Payable in the general ledger has a separate subsidiary account for each creditor in the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 3

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

Accepted Answer

A) True 
 B)False

Question 4

Because special journals are designed to suit businesses, good systems design for a business could include collapsing the sales and cash disbursements journal into one journal.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding accounting information systems is not true?

Accepted Answer

A) Accounting information systems communicate information to business decision makers. 
B) Accounting information systems are useful to effective decision making. 
C) Accounting information systems organize data in useful forms. 
D) Accounting information systems are not subject to internal control policies. 
E) Accounting information systems collect and process data from transactions and events. 
A) Accounting information systems communicate information to business decision makers. 
B) Accounting information systems are useful to effective decision making. 
C) Accounting information systems organize data in useful forms. 
D) Accounting information systems are not subject to internal control policies. 
E) Accounting information systems collect and process data from transactions and events.

Question 6

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

Accepted Answer

A) Purchases journal. 
B) Cash receipts journal. 
C) General journal. 
D) Cash disbursements journal. 
E) Accounts Payable controlling account. 
A) Purchases journal. 
B) Cash receipts journal. 
C) General journal. 
D) Cash disbursements journal. 
E) Accounts Payable controlling account.

Question 7

The Accounts Payable account in the general ledger is:

Accepted Answer

A) The subsidiary account to the purchases journal. 
B) A controlling account for the subsidiary accounts payable ledger. 
C) Part of a special journal. 
D) The account that controls the purchases journal. 
E) Part of a subsidiary ledger. 
A) The subsidiary account to the purchases journal. 
B) A controlling account for the subsidiary accounts payable ledger. 
C) Part of a special journal. 
D) The account that controls the purchases journal. 
E) Part of a subsidiary ledger.

Question 8

The SAP enterprise-resource planning software is being used to help direct the operations of many of the world's largest companies.

Accepted Answer

A) True 
 B)False

Question 9

Describe the posting process for special journals.

Accepted Answer

Posting to special journals is a three-s

Question 10

When auditors audit financial statements and a company's controls they rely on accounting system databases.

Accepted Answer

A) True 
 B)False

Question 11

Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Accepted Answer

A) True 
 B)False

Question 12

Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding input devices is not true?

Accepted Answer

A) Input devices include keyboards and scanners. 
B) Input devices capture information from source documents and enable its transfer to the system's information processing component. 
C) Input devices make accounting system information available to users. 
D) Input devices convert data on source documents from written form to a form usable for the system. 
E) Input devices include journal entries. 
A) Input devices include keyboards and scanners. 
B) Input devices capture information from source documents and enable its transfer to the system's information processing component. 
C) Input devices make accounting system information available to users. 
D) Input devices convert data on source documents from written form to a form usable for the system. 
E) Input devices include journal entries.

Question 14

The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.

Accepted Answer

A) True 
 B)False

Question 15

Explain how the amounts in the subsidiary ledgers are proved (or reviewed)for accuracy.

Accepted Answer

First, a trial balance of the general le

Question 16

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

Accepted Answer

A) The sum of the supplier account balances does not equal the general ledger Accounts Payable controlling account balance. 
B) The sum of the accounts receivable ledger does not equal the balance in the sales journal. 
C) The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
D) The sum of the supplier account balances does not equal the total in the purchases journal. 
E) The balance in the sales journal does not equal the Accounts Receivable account balance. 
A) The sum of the supplier account balances does not equal the general ledger Accounts Payable controlling account balance. 
B) The sum of the accounts receivable ledger does not equal the balance in the sales journal. 
C) The sum of the accounts receivable ledger does not equal the balance in the Sales account. 
D) The sum of the supplier account balances does not equal the total in the purchases journal. 
E) The balance in the sales journal does not equal the Accounts Receivable account balance.

Question 17

Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three days later, the company returned $1,100 of the merchandise. When recording the return transaction, the company would record:

Accepted Answer

A) Debit Cash $1,100 and credit Inventory $1,100 in the general journal. 
B) $1,100 in the Accounts Payable Dr. column and $1,100 in the Cash Cr. column of the cash disbursements journal. 
C) $1,100 in the Accounts Payable Cr. column and $1,100 in the Inventory Dr. column of the purchases journal. 
D) $1,100 in the Cash Cr. column and $1,100 in the Inventory Cr. column in the cash disbursements journal. 
E) Debit Accounts Payable $1,100 and credit Inventory $1,100 in the general journal. 
A) Debit Cash $1,100 and credit Inventory $1,100 in the general journal. 
B) $1,100 in the Accounts Payable Dr. column and $1,100 in the Cash Cr. column of the cash disbursements journal. 
C) $1,100 in the Accounts Payable Cr. column and $1,100 in the Inventory Dr. column of the purchases journal. 
D) $1,100 in the Cash Cr. column and $1,100 in the Inventory Cr. column in the cash disbursements journal. 
E) Debit Accounts Payable $1,100 and credit Inventory $1,100 in the general journal.

Question 18

All of the following statements regarding source documents are true except:

Accepted Answer

A) Source documents can include Web communications. 
B) Source documents can be paper or electronic files. 
C) Source documents provide the basic information processed by an accounting system. 
D) Source documents should not be sent directly from a company's system to its customers or suppliers. 
E) Source documents include invoices, cash register files, and employee earnings records. 
A) Source documents can include Web communications. 
B) Source documents can be paper or electronic files. 
C) Source documents provide the basic information processed by an accounting system. 
D) Source documents should not be sent directly from a company's system to its customers or suppliers. 
E) Source documents include invoices, cash register files, and employee earnings records.

Question 19

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

Accepted Answer

A) Inventory. 
B) Equipment. 
C) Payroll. 
D) Investments. 
E) Cash. 
A) Inventory. 
B) Equipment. 
C) Payroll. 
D) Investments. 
E) Cash.

Question 20

Match between columns
                        Premises: Sold merchandise for cash.
Received cash from a customer to settle an account receivable.
Sold merchandise on credit.
Borrowed cash from the bank.
Bought office supplies on credit.
Paid cash to settle the utility bill.
Purchased merchandise for cash.
Purchased merchandise on credit.
Owner invested more cash in the business.
Recorded depreciation for the period.

Accepted Answer

The Answer of General Journal and Purchases Journal and Sales is...

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

The controlling account, Accounts Payable in the general ledger has a separate subsidiary account for each creditor in the accounts payable ledger.

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

Because special journals are designed to suit businesses, good systems design for a business could include collapsing the sales and cash disbursements journal into one journal.

Which of the following statements regarding accounting information systems is not true?

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

The Accounts Payable account in the general ledger is:

The SAP enterprise-resource planning software is being used to help direct the operations of many of the world's largest companies.

Describe the posting process for special journals.

When auditors audit financial statements and a company's controls they rely on accounting system databases.

Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements.

Which of the following statements regarding input devices is not true?

The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.

Explain how the amounts in the subsidiary ledgers are proved (or reviewed)for accuracy.

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

Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three days later, the company returned $1,100 of the merchandise. When recording the return transaction, the company would record:

All of the following statements regarding source documents are true except:

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

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

Exam 7: Accounting Information Systems

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

The controlling account, Accounts Payable in the general ledger has a separate subsidiary account for each creditor in the accounts payable ledger.

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

Because special journals are designed to suit businesses, good systems design for a business could include collapsing the sales and cash disbursements journal into one journal.

Which of the following statements regarding accounting information systems is not true?

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

The Accounts Payable account in the general ledger is:

The SAP enterprise-resource planning software is being used to help direct the operations of many of the world's largest companies.

Describe the posting process for special journals.

When auditors audit financial statements and a company's controls they rely on accounting system databases.

Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements.

Which of the following statements regarding input devices is not true?

The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.

Explain how the amounts in the subsidiary ledgers are proved (or reviewed)for accuracy.

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

Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three days later, the company returned $1,100 of the merchandise. When recording the return transaction, the company would record:

All of the following statements regarding source documents are true except:

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

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