Question 1

Input devices involve converting data on source documents from written or electronic form to a form usable for the system.

Accepted Answer

A) True 
 B)False

Question 2

The sales journal is used for recording:

Accepted Answer

A) Cash sales. 
B) Credit sales. 
C) Cash purchases. 
D) Credit purchases. 
E) Cash receipts. 
A) Cash sales. 
B) Credit sales. 
C) Cash purchases. 
D) Credit purchases. 
E) Cash receipts.

Question 3

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 A is:

Accepted Answer

A) 60.9%. 
B) 38.8%. 
C) 32.2%. 
D) 49.2%. 
E) 50.5%. 
A) 60.9%. 
B) 38.8%. 
C) 32.2%. 
D) 49.2%. 
E) 50.5%.

Question 4

Match between columns
                        Premises: Purchased merchandise on account, $2,100.
Recorded depreciation on office equipment of $2,000.
Paid a telephone bill for $3,400 cash.
Purchased $1,150 of office supplies on account.
Borrowed $7,000 cash from the local bank.
Recorded cash sales of $12,700.
Paid $15,000 cash in wages to employees.
Returned defective inventory purchased on account, $2,550.
A customer returned a $250 item purchased on account.
Purchased equipment on account for $4,000.

Accepted Answer

The Answer of General journal and Sales journal and Cash is...

Question 5

An accounts payable ledger:

Accepted Answer

A) Contains a separate account for each creditor (supplier)to the company. 
B) Is a book of original entry designed and used for recording only a specified type of transaction. 
C) Contains the financial statement accounts of a business. 
D) Contains an account for each credit customer. 
E) Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding. 
A) Contains a separate account for each creditor (supplier)to the company. 
B) Is a book of original entry designed and used for recording only a specified type of transaction. 
C) Contains the financial statement accounts of a business. 
D) Contains an account for each credit customer. 
E) Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding.

Question 6

If a company issues a check for $2,750 in payment of the salaries expense for the last half of the month, the transaction will be recorded in which journal?

Accepted Answer

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

Question 7

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

Accepted Answer

The controlling accounts are part of the

Question 8

Information processors capture information and enable its transfer to the system's information processing component.

Accepted Answer

A) True 
 B)False

Question 9

A business segment is part of a company that:

Accepted Answer

A) Requires subsidiary ledgers. 
B) Cannot report its results separately. 
C) Requires only internal reporting. 
D) Requires special journals. 
E) Is separately identified by its products, services, or geographic market. 
A) Requires subsidiary ledgers. 
B) Cannot report its results separately. 
C) Requires only internal reporting. 
D) Requires special journals. 
E) Is separately identified by its products, services, or geographic market.

Question 10

The compatibility principle requires that an accounting system report useful, understandable, timely, and pertinent information for effective decision making.

Accepted Answer

A) True 
 B)False

Question 11

Information storage databases:

Accepted Answer

A) Capture information from source documents. 
B) Are relied on by auditors of the financial statements. 
C) Need not be accessible once data is processed. 
D) Should not be cloud based. 
E) Eliminate the need for professional judgment. 
A) Capture information from source documents. 
B) Are relied on by auditors of the financial statements. 
C) Need not be accessible once data is processed. 
D) Should not be cloud based. 
E) Eliminate the need for professional judgment.

Question 12

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

Accepted Answer

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

Question 13

The accounting principle that prescribes an accounting information system conform with a company's activities, personnel, and structure is the:

Accepted Answer

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

Question 14

External users of financial statements are generally interested in segment information to understand a company's business activities.

Accepted Answer

A) True 
 B)False

Question 15

The purchases journal is used to record purchases of merchandise on credit.

Accepted Answer

A) True 
 B)False

Question 16

A record that contains detailed information on specific accounts with a common characteristic and is support for a controlling account is a(n):

Accepted Answer

A) All-purpose ledger. 
B) Subsidiary ledger. 
C) Special ledger. 
D) General ledger. 
E) Column balance ledger. 
A) All-purpose ledger. 
B) Subsidiary ledger. 
C) Special ledger. 
D) General ledger. 
E) Column balance ledger.

Question 17

Individual transactions in the purchases journal are regularly posted to creditor accounts in the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 18

The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers.

Accepted Answer

A) True 
 B)False

Question 19

Output devices include journal entries, keyboards and scanners.

Accepted Answer

A) True 
 B)False

Question 20

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the payment of the invoice within the discount period in its cash disbursement journal, Farthington would enter:

Accepted Answer

A) $15,300 in the Accounts Payable Dr. column; $14,994 in the Cash Cr. column; and $306 in the Inventory Cr. column. 
B) $14,994 in the Accounts Payable Dr. column and $14,994 in the Cash Cr. column. 
C) $15,300 in the Cash Cr. column and $15,300 in the Accounts Payable Dr. column. 
D) $15,300 in the Cash Cr. column and $15,300 in the Inventory Dr. column. 
E) $15,300 in the Inventory Cr. column; $14,994 in the Accounts Payable Dr. column; and $306 in the Inventory Cr. column. 
A) $15,300 in the Accounts Payable Dr. column; $14,994 in the Cash Cr. column; and $306 in the Inventory Cr. column. 
B) $14,994 in the Accounts Payable Dr. column and $14,994 in the Cash Cr. column. 
C) $15,300 in the Cash Cr. column and $15,300 in the Accounts Payable Dr. column. 
D) $15,300 in the Cash Cr. column and $15,300 in the Inventory Dr. column. 
E) $15,300 in the Inventory Cr. column; $14,994 in the Accounts Payable Dr. column; and $306 in the Inventory Cr. column.

Input devices involve converting data on source documents from written or electronic form to a form usable for the system.

The sales journal is used for recording:

An accounts payable ledger:

If a company issues a check for $2,750 in payment of the salaries expense for the last half of the month, the transaction will be recorded in which journal?

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

Information processors capture information and enable its transfer to the system's information processing component.

A business segment is part of a company that:

The compatibility principle requires that an accounting system report useful, understandable, timely, and pertinent information for effective decision making.

Information storage databases:

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

The accounting principle that prescribes an accounting information system conform with a company's activities, personnel, and structure is the:

External users of financial statements are generally interested in segment information to understand a company's business activities.

The purchases journal is used to record purchases of merchandise on credit.

A record that contains detailed information on specific accounts with a common characteristic and is support for a controlling account is a(n):

Individual transactions in the purchases journal are regularly posted to creditor accounts in the accounts payable ledger.

The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers.

Output devices include journal entries, keyboards and scanners.

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

Input devices involve converting data on source documents from written or electronic form to a form usable for the system.

The sales journal is used for recording:

An accounts payable ledger:

If a company issues a check for $2,750 in payment of the salaries expense for the last half of the month, the transaction will be recorded in which journal?

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

Information processors capture information and enable its transfer to the system's information processing component.

A business segment is part of a company that:

The compatibility principle requires that an accounting system report useful, understandable, timely, and pertinent information for effective decision making.

Information storage databases:

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

The accounting principle that prescribes an accounting information system conform with a company's activities, personnel, and structure is the:

External users of financial statements are generally interested in segment information to understand a company's business activities.

The purchases journal is used to record purchases of merchandise on credit.

A record that contains detailed information on specific accounts with a common characteristic and is support for a controlling account is a(n):

Individual transactions in the purchases journal are regularly posted to creditor accounts in the accounts payable ledger.

The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers.

Output devices include journal entries, keyboards and scanners.

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