Question 1

Which of the following sets includes examples of the same element of financial statements?

Accepted Answer

A) Accounts payable, deferred revenue, prepaid wages 
B) Accounts receivable, deferred revenue, prepaid wages 
C) Accounts payable, deferred revenue, wages payable 
D) Deferred revenue, wages payable, prepaid wages 
A) Accounts payable, deferred revenue, prepaid wages 
B) Accounts receivable, deferred revenue, prepaid wages 
C) Accounts payable, deferred revenue, wages payable 
D) Deferred revenue, wages payable, prepaid wages

Question 2

List the steps in the accounting cycle in their proper order.

Accepted Answer

1.Obtain information about external tran

Question 3

The American Accounting Association's definition of accounting includes the items listed on the right.Which item is most clearly related to the examples on the left? Some elements of the definition may be used more than once; others may not be used at all.Each item on the left has only one best answer.

Accepted Answer

1.B
2.B
3.

Question 4

Please refer to the following unadjusted trial balance in answering the below question.   VLN had unpaid wages totaling $800 at the end of the accounting period.When VLN's accountant makes an adjusting entry for the unpaid wages, the new trial balance totals will be:

Accepted Answer

A) $49,600 
B) $51,200 
C) Some other amount 
D) Cannot be determined from the information given 
A) $49,600 
B) $51,200 
C) Some other amount 
D) Cannot be determined from the information given

Question 5

NTR Corporation has offices in both Los Angeles and San Francisco.In the Los Angeles office, the account number for cash is 001.101.In San Francisco, the account number for cash is 002.101.Which of the following statements is most true?

Accepted Answer

A) NTR uses sequential coding for its chart of accounts. 
B) One of the offices should change its account number for cash to promote consistency and efficiency. 
C) The first set of digits denotes the office. 
D) The second set of digits denotes the office. 
A) NTR uses sequential coding for its chart of accounts. 
B) One of the offices should change its account number for cash to promote consistency and efficiency. 
C) The first set of digits denotes the office. 
D) The second set of digits denotes the office.

Question 6

WDN Corporation recently purchased JZN Corporation; the two companies are now trying to merge their separate charts of accounts into a single chart of accounts.Selected block-coded accounts from the two separate accounting information systems appear below:

Accepted Answer

@#IMG-DLM&_TB4225_00 Management wants to retain th

Question 7

The accounting department at a local university uses the prefix ACC for all its courses, thus exemplifying which type of coding system?

Accepted Answer

A) Sequential 
B) Block 
C) Hierarchical 
D) Mnemonic 
A) Sequential 
B) Block 
C) Hierarchical 
D) Mnemonic

Question 8

Which of the following is an example of a deferred revenue?

Accepted Answer

A) A university receives cash from students prior to the start of classes. 
B) A convenience store sells newspapers to its customers. 
C) Both a university receives cash from students prior to the start of classes and a convenience store sells newspapers to its customers. 
D) Neither a university receives cash from students prior to the start of classes nor a convenience store sells newspapers to its customers. 
A) A university receives cash from students prior to the start of classes. 
B) A convenience store sells newspapers to its customers. 
C) Both a university receives cash from students prior to the start of classes and a convenience store sells newspapers to its customers. 
D) Neither a university receives cash from students prior to the start of classes nor a convenience store sells newspapers to its customers.

Question 9

At the end of 2014, CNC Corporation's accounting information system produced the following trial balance:   52.At the end of 2014, CNC Corporation's accounting information system produced the following trial balance:
NEWLINE
NEWLINE
CNC completed the following transactions in January 2015:
A.Purchased inventory on account, $300.
B.Collected cash from customers for prior year sales, $500.
C.Paid current month's wages, $900.
D.Had land appraised.Cost of doing the appraisal (paid in cash), $700.Appraised value of land, $3,000.
E.Sold inventory with a cost basis of $200 on account, $800.
F.Declared dividends, $50.
G.Hired additional sales staff.Expected monthly salaries, $80.
H.Purchased supplies for cash, $150.
i.Paid creditors for previous purchases, $150.
j.Signed a contract for annual employee retreat, $450.
Sequential numbering is a common internal control applied to source documents in the accounting information system.Which of the following transactions will involve sequential numbering?

Accepted Answer

A)  Transaction A. 
B)  Transaction F. 
C)  Transaction G. 
D)  Transaction J. 
A)  Transaction A. 
B)  Transaction F. 
C)  Transaction G. 
D)  Transaction J.

Question 10

In an AIS, human judgment is important in:

Accepted Answer

A) The second step of the accounting cycle. 
B) The design and implementation of internal controls. 
C) Both the second step of the accounting cycle and the design and implementation of internal controls. 
D) Neither the second step of the accounting cycle nor the design and implementation of internal controls. 
A) The second step of the accounting cycle. 
B) The design and implementation of internal controls. 
C) Both the second step of the accounting cycle and the design and implementation of internal controls. 
D) Neither the second step of the accounting cycle nor the design and implementation of internal controls.

Question 11

Both human judgment and information technology are important in accounting information systems.In which of the following pairs of tasks will information technology be more critical than human judgment?

Accepted Answer

A) Steps 4 and 9 of the accounting cycle 
B) Calculating depreciation and creating a new customer order form in Word 
C) Step 4 of the accounting cycle and calculating depreciation 
D) Step 9 of the accounting cycle and creating a new customer order form in Word 
A) Steps 4 and 9 of the accounting cycle 
B) Calculating depreciation and creating a new customer order form in Word 
C) Step 4 of the accounting cycle and calculating depreciation 
D) Step 9 of the accounting cycle and creating a new customer order form in Word

Question 12

The procedures manual for THM Corporation included the following statements:
a.Accounting department employees are encouraged to obtain a professional certification.
b.Adjusting entries involving estimates must have those estimates approved by the CFO before they are recorded in the AIS.
c.All employees accrue sick time at the rate of one hour per month.
d.All purchase orders must be prepared in triplicate, with the original going to the vendor, the blue copy staying in purchasing and the yellow copy returning to department that initiated the purchase request.
e.All transactions must be recorded in the journal, then posted to the ledger.
f.Employees are paid twice a month; journal entries for payroll are recorded two days prior to each pay date.
g.New account numbers must follow the principles of hierarchical coding; they must be reviewed and approved before becoming part of the AIS.
h.THM is organized in five major departments: accounting, marketing, human resources, information systems and operations.
i.THM uses Great Plains Dynamics as its general ledger software.Great Plains will not allow transactions to be recorded unless the equality of debits and credits is maintained.
j.THM's accounting information system is audited annually by Dewey, Cheatam and Howe, CPAs.Which five statements from the procedures manual most directly explain internal controls related to the accounting cycle?

Accepted Answer

The answer of The procedures manual for THM Corporation included...

Question 13

Most organizations use purchase orders to authorize inventory and other purchases.If a company's purchase order contains a field labeled "purchase order number," it most likely uses what kind of coding?

Accepted Answer

A) Sequential 
B) Block 
C) Hierarchical 
D) Mnemonic 
A) Sequential 
B) Block 
C) Hierarchical 
D) Mnemonic

Question 14

The definition of accounting has three principal elements.Which of the following is not one of them?

Accepted Answer

A) Distinguishing relevant from irrelevant information 
B) Calculating amounts to record in the AIS 
C) Reporting financial results 
D) Using the information to make informed judgments 
A) Distinguishing relevant from irrelevant information 
B) Calculating amounts to record in the AIS 
C) Reporting financial results 
D) Using the information to make informed judgments

Question 15

In what way is the fifth step in the accounting cycle different from the seventh step in the accounting cycle?

Accepted Answer

A) The fifth step comes before preparing financial statements; the seventh step comes afterward. 
B) The fifth step focuses only on permanent accounts; the seventh step focuses only on temporary accounts. 
C) The fifth step focuses only on temporary accounts; the seventh step focuses only on permanent accounts. 
D) The seventh step includes the results of internal transactions; the fifth step does not. 
A) The fifth step comes before preparing financial statements; the seventh step comes afterward. 
B) The fifth step focuses only on permanent accounts; the seventh step focuses only on temporary accounts. 
C) The fifth step focuses only on temporary accounts; the seventh step focuses only on permanent accounts. 
D) The seventh step includes the results of internal transactions; the fifth step does not.

Which of the following sets includes examples of the same element of financial statements?

List the steps in the accounting cycle in their proper order.

Please refer to the following unadjusted trial balance in answering the below question. VLN had unpaid wages totaling $800 at the end of the accounting period.When VLN's accountant makes an adjusting entry for the unpaid wages, the new trial balance totals will be:

NTR Corporation has offices in both Los Angeles and San Francisco.In the Los Angeles office, the account number for cash is 001.101.In San Francisco, the account number for cash is 002.101.Which of the following statements is most true?

WDN Corporation recently purchased JZN Corporation; the two companies are now trying to merge their separate charts of accounts into a single chart of accounts.Selected block-coded accounts from the two separate accounting information systems appear below:

The accounting department at a local university uses the prefix ACC for all its courses, thus exemplifying which type of coding system?

Which of the following is an example of a deferred revenue?

In an AIS, human judgment is important in:

Both human judgment and information technology are important in accounting information systems.In which of the following pairs of tasks will information technology be more critical than human judgment?

Most organizations use purchase orders to authorize inventory and other purchases.If a company's purchase order contains a field labeled "purchase order number," it most likely uses what kind of coding?

The definition of accounting has three principal elements.Which of the following is not one of them?

In what way is the fifth step in the accounting cycle different from the seventh step in the accounting cycle?

Role and Purpose of Accounting Information Systems

Internal Controls

Management Concepts

Information Systems Concepts

Flowcharting

Data Flow Diagramming

Rea Modeling

XBRL

E-Business and Enterprise Resource Planning Systems

Computer Crime and Information Technology Security

Salescollection Process

Acquisitionpayment Process

Other Business Processes

Decision-Making Models and Knowledge Management

Professionalism, Ethics, and Career Planning

Auditing and Evaluating the Ais

Filters

Exam 3: Transaction Processing in the Ais

Which of the following sets includes examples of the same element of financial statements?

List the steps in the accounting cycle in their proper order.

Please refer to the following unadjusted trial balance in answering the below question. VLN had unpaid wages totaling $800 at the end of the accounting period.When VLN's accountant makes an adjusting entry for the unpaid wages, the new trial balance totals will be:

NTR Corporation has offices in both Los Angeles and San Francisco.In the Los Angeles office, the account number for cash is 001.101.In San Francisco, the account number for cash is 002.101.Which of the following statements is most true?

WDN Corporation recently purchased JZN Corporation; the two companies are now trying to merge their separate charts of accounts into a single chart of accounts.Selected block-coded accounts from the two separate accounting information systems appear below:

The accounting department at a local university uses the prefix ACC for all its courses, thus exemplifying which type of coding system?

Which of the following is an example of a deferred revenue?

In an AIS, human judgment is important in:

Both human judgment and information technology are important in accounting information systems.In which of the following pairs of tasks will information technology be more critical than human judgment?

Most organizations use purchase orders to authorize inventory and other purchases.If a company's purchase order contains a field labeled "purchase order number," it most likely uses what kind of coding?

The definition of accounting has three principal elements.Which of the following is not one of them?

In what way is the fifth step in the accounting cycle different from the seventh step in the accounting cycle?

Role and Purpose of Accounting Information Systems

Internal Controls

Management Concepts

Information Systems Concepts

Flowcharting

Data Flow Diagramming

Rea Modeling

XBRL

E-Business and Enterprise Resource Planning Systems

Computer Crime and Information Technology Security

Salescollection Process

Acquisitionpayment Process

Other Business Processes

Decision-Making Models and Knowledge Management

Professionalism, Ethics, and Career Planning

Auditing and Evaluating the Ais

Filters