Question 1

List the five basic principles of accounting information systems.

Accepted Answer

Accounting information systems are guided by five main principles: control,relevance,compatibility,flexibility,and cost-benefit.

Question 2

____________________ are the means to take information out of an accounting system and make it available to users.

Accepted Answer

Output devices

Question 3

Which of the following does not apply to enterprise resource planning (ERP)software:

Accepted Answer

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

Question 4

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system,the

Question 5

___________________ processing enters and processes data as soon as source documents are available.

Accepted Answer

The answer of ___________________ processing enters and processes data as...

Question 6

Renton Co.uses special journals to record its transactions.They use the perpetual inventory system.Shown below are the purchasing and cash disbursement transactions for current month of May:
   Record these transactions in the following journals.

Accepted Answer

The answer of Renton Co.uses special journals to record its...

Question 7

A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n):

Accepted Answer

A) Schedule of accounts. 
B) Controlling account. 
C) Schedule of accounts receivable. 
D) Subsidiary ledger. 
E) Special journal. 
A) Schedule of accounts. 
B) Controlling account. 
C) Schedule of accounts receivable. 
D) Subsidiary ledger. 
E) Special journal.

Question 8

The purchases journal is used to record cash purchases of merchandise.

Accepted Answer

A) True 
 B)False

Question 9

The control principle for accounting information systems requires that the:

Accepted Answer

A) Benefits from an activity outweigh the costs of the activity. 
B) System report useful, understandable, timely, and pertinent information for effective decision making. 
C) System must have internal controls. 
D) System adapts to changes in the company, business environment, and needs of decision makers. 
E) System conforms to a company's activities, personnel, and structure. 
A) Benefits from an activity outweigh the costs of the activity. 
B) System report useful, understandable, timely, and pertinent information for effective decision making. 
C) System must have internal controls. 
D) System adapts to changes in the company, business environment, and needs of decision makers. 
E) System conforms to a company's activities, personnel, and structure.

Question 10

A business segment:

Accepted Answer

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

Question 11

Match between columns
                        Premises: A measure of the profitability of a segment,calculated as segment operating income divided by segment average assets.
A general ledger account,the balance of which (after posting)equals the sum of the balances of the accounts in a related subsidiary ledger.
A list of each customer from the accounts receivable ledger with their balances and the total.
The special journal that is used to record all receipts of cash.
An information system principle requiring that an accounting information system conform with a company's activities,personnel,and structure.
The component of an accounting system that keeps data in a form accessible to information processors.
A journal used to record sales of merchandise on credit.
An information system principle requiring that the benefits from an activity in an accounting information system outweigh the costs of that activity.
A journal used to record all purchases on credit.
Any journal used for recording and posting transactions of a similar type.

Accepted Answer

The Answer of Cash receipts journal and Controlling account and is...

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

All of the following statements regarding accounting information systems are true except:

Accepted Answer

A) Accounting information systems consist of people, records, methods, and equipment. 
B) Accounting information systems have the same goals and share basic components. 
C) Accounting information systems are less important than ever to decision makers. 
D) Accounting information systems are designed to provide output including financial, managerial, and tax reports. 
E) Accounting information systems are designed to capture information about a company's transactions. 
A) Accounting information systems consist of people, records, methods, and equipment. 
B) Accounting information systems have the same goals and share basic components. 
C) Accounting information systems are less important than ever to decision makers. 
D) Accounting information systems are designed to provide output including financial, managerial, and tax reports. 
E) Accounting information systems are designed to capture information about a company's transactions.

Question 15

Discuss how technology based information systems affect accounting.

Accepted Answer

Technology based information systems hav

Question 16

A procedure called direct posting of sales invoices can substitute for the sales journal.

Accepted Answer

A) True 
 B)False

Question 17

A company issued a check for $7,900 in payment of merchandise.Identify the journal the transaction would be recorded in.

Accepted Answer

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

What are the five basic components of accounting information systems?

Accepted Answer

The five basic components of a

Question 20

Lester Company uses special journals to record transactions.All of the companies listed below supply inventory to Lester except Harry Co.that supplies equipment.Use the purchases journal given below to answer the following questions:
a.Foot and crossfoot the journal for accuracy.
   b.Identify the error and indicate how to correct the error.
c.When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger,it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable.What is the most likely cause and how should it be corrected?

Accepted Answer

a.
 @#IMG-DLM& b.The May 8 purchase from Steve Co.

Exam 7: Accounting Information Systems

List the five basic principles of accounting information systems.

____________________ are the means to take information out of an accounting system and make it available to users.

Which of the following does not apply to enterprise resource planning (ERP)software:

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

___________________ processing enters and processes data as soon as source documents are available.

Renton Co.uses special journals to record its transactions.They use the perpetual inventory system.Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals.

A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n):

The purchases journal is used to record cash purchases of merchandise.

The control principle for accounting information systems requires that the:

A business segment:

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.

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

All of the following statements regarding accounting information systems are true except:

Discuss how technology based information systems affect accounting.

A procedure called direct posting of sales invoices can substitute for the sales journal.

A company issued a check for $7,900 in payment of merchandise.Identify the journal the transaction would be recorded in.

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

What are the five basic components of accounting information systems?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, 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

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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