Question 1

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Accepted Answer

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

Question 2

Which of the following is not true about enterprise resource planning (ERP)software:

Accepted Answer

A) ERP can be designed to link every part of a company's operations. 
B) ERP cannot be used to share data with customers and suppliers. 
C) ERP can include programs that extend from order taking to manufacturing to accounting. 
D) ERP can speed up business decision making and help reduce costs. 
E) ERP refers to programs that help manage a company's vital operations. 
A) ERP can be designed to link every part of a company's operations. 
B) ERP cannot be used to share data with customers and suppliers. 
C) ERP can include programs that extend from order taking to manufacturing to accounting. 
D) ERP can speed up business decision making and help reduce costs. 
E) ERP refers to programs that help manage a company's vital operations.

Question 3

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

Accepted Answer

A) Accounting information systems cannot improve on a company's competitive edge. 
B) Accounting information systems are designed to capture information about a company's transactions. 
C) Accounting information systems are more important than ever to decision makers. 
D) Accounting information systems consist of people, records, methods, and equipment. 
E) Accounting information systems are designed to provide output including financial, managerial, and tax reports. 
A) Accounting information systems cannot improve on a company's competitive edge. 
B) Accounting information systems are designed to capture information about a company's transactions. 
C) Accounting information systems are more important than ever to decision makers. 
D) Accounting information systems consist of people, records, methods, and equipment. 
E) Accounting information systems are designed to provide output including financial, managerial, and tax reports.

Question 4

Input devices include:

Accepted Answer

A) Scanners. 
B) Software. 
C) Information processors. 
D) Ledgers. 
E) Printers. 
A) Scanners. 
B) Software. 
C) Information processors. 
D) Ledgers. 
E) Printers.

Question 5

A sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Question 6

A schedule of accounts receivable is a listing of all customer accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 7

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. Doughton would record the return of merchandise in the:

Accepted Answer

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

Question 8

Special journals allow an efficient division of labor, which is also an effective control procedure.

Accepted Answer

A) True 
 B)False

Question 9

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Accepted Answer

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

Question 10

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 sales transaction in its sales journal, Maxie's would enter:

Accepted Answer

A) $1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cost of Goods Sold Dr./Inventory Cr. column. 
B) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column. 
C) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column. 
D) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Accounts Payable Dr./Purchases Cr. column. 
E) $1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Other Accounts Dr. column. 
A) $1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cost of Goods Sold Dr./Inventory Cr. column. 
B) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column. 
C) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column. 
D) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Accounts Payable Dr./Purchases Cr. column. 
E) $1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Other Accounts Dr. column.

Question 11

What is the segment return on assets ratio? What is it used for?

Accepted Answer

The segment return on assets is segment

Question 12

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

Accepted Answer

A) Batch processing. 
B) Web communications. 
C) Computer programming. 
D) Online processing. 
E) Date storage. 
A) Batch processing. 
B) Web communications. 
C) Computer programming. 
D) Online processing. 
E) Date storage.

Question 13

A journal that is used to record and post transactions of a similar type is a(n):

Accepted Answer

A) Special journal. 
B) General journal. 
C) Perpetual journal. 
D) Columnar journal. 
E) All-purpose journal. 
A) Special journal. 
B) General journal. 
C) Perpetual journal. 
D) Columnar journal. 
E) All-purpose journal.

Question 14

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Accepted Answer

A) True 
 B)False

Question 15

The segment return on assets:

Accepted Answer

A) Reflects on the profitability of a segment. 
B) Is difficult to calculate because companies with traded stock are not required to report segment information. 
C) Is applicable whether segments earn profits or losses. 
D) Is calculated as segment sales divided by segment average assets. 
E) Is calculated as segment average assets divided by segment operating income. 
A) Reflects on the profitability of a segment. 
B) Is difficult to calculate because companies with traded stock are not required to report segment information. 
C) Is applicable whether segments earn profits or losses. 
D) Is calculated as segment sales divided by segment average assets. 
E) Is calculated as segment average assets divided by segment operating income.

Question 16

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Accepted Answer

A) True 
 B)False

Question 17

The purchases journal is used for recording:

Accepted Answer

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

Question 18

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Accepted Answer

A) True 
 B)False

Question 19

The main difference in the sales journal under the perpetual and periodic inventory system is:

Accepted Answer

A) The sales tax payable column is used under the perpetual system but not the periodic. 
B) The column for recording cash is used under the perpetual system but not the periodic. 
C) The sales tax receivable column is used under the perpetual system but not the periodic. 
D) The perpetual system has a column to record cost of goods sold but the periodic system does not. 
E) The accounts receivable column is used under the perpetual system but not the periodic. 
A) The sales tax payable column is used under the perpetual system but not the periodic. 
B) The column for recording cash is used under the perpetual system but not the periodic. 
C) The sales tax receivable column is used under the perpetual system but not the periodic. 
D) The perpetual system has a column to record cost of goods sold but the periodic system does not. 
E) The accounts receivable column is used under the perpetual system but not the periodic.

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Which of the following is not true about enterprise resource planning (ERP)software:

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

Input devices include:

A sales journal is used to record cash sales.

A schedule of accounts receivable is a listing of all customer accounts and account balances.

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. Doughton would record the return of merchandise in the:

Special journals allow an efficient division of labor, which is also an effective control procedure.

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

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 sales transaction in its sales journal, Maxie's would enter:

What is the segment return on assets ratio? What is it used for?

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

A journal that is used to record and post transactions of a similar type is a(n):

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

The segment return on assets:

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

The purchases journal is used for recording:

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

The main difference in the sales journal under the perpetual and periodic inventory system is:

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

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Which of the following is not true about enterprise resource planning (ERP)software:

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

Input devices include:

A sales journal is used to record cash sales.

A schedule of accounts receivable is a listing of all customer accounts and account balances.

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. Doughton would record the return of merchandise in the:

Special journals allow an efficient division of labor, which is also an effective control procedure.

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

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 sales transaction in its sales journal, Maxie's would enter:

What is the segment return on assets ratio? What is it used for?

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

A journal that is used to record and post transactions of a similar type is a(n):

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

The segment return on assets:

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

The purchases journal is used for recording:

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

The main difference in the sales journal under the perpetual and periodic inventory system is:

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