Question 1

Which of the following serves as the "journal of last resort"?

Accepted Answer

A) purchases journal 
B) sales journal 
C) general journal 
D) cash payments journal 
A) purchases journal 
B) sales journal 
C) general journal 
D) cash payments journal C

Question 2

Northern Corporation sold goods to Eastern Enterprises for $1,000 on account.Cost of goods sold was $745.Northern uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Accepted Answer

A) Accounts Receivable DR,Sales Revenue CR 
B) Cost of Goods Sold CR,Merchandise Inventory DR 
C) Cost of Goods Sold DR,Merchandise Inventory CR 
D) Sales Revenue DR,Accounts Receivable CR 
A) Accounts Receivable DR,Sales Revenue CR 
B) Cost of Goods Sold CR,Merchandise Inventory DR 
C) Cost of Goods Sold DR,Merchandise Inventory CR 
D) Sales Revenue DR,Accounts Receivable CR C

Question 3

After posting from the cash payments journal,the posting reference is printed in the general journal.

Accepted Answer

A) True 
 B)False  False

Question 4

The sale of merchandise inventory for cash is recorded in the ________.

Accepted Answer

A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal 
A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal

Question 5

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

Accepted Answer

A) True 
 B)False

Question 6

The cash payments journal is a special journal used to record cash payments by currency but not by check.

Accepted Answer

A) True 
 B)False

Question 7

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Accepted Answer

A) True 
 B)False

Question 8

The accounts payable subsidiary ledger ________.

Accepted Answer

A) does not indicate the amount owed to each vendor 
B) shows only a single total for the amount owed on account 
C) lists vendors in alphabetical order,along with amounts paid to the vendors and the remaining amounts owed to them 
D) has a format that is entirely different from an accounts receivable subsidiary ledger 
A) does not indicate the amount owed to each vendor 
B) shows only a single total for the amount owed on account 
C) lists vendors in alphabetical order,along with amounts paid to the vendors and the remaining amounts owed to them 
D) has a format that is entirely different from an accounts receivable subsidiary ledger

Question 9

Which of the following is true of outputs in an accounting information system?

Accepted Answer

A) In a manual system,reports and financial statements can be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that cannot be formatted. 
C) Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices. 
D) Since the output in an accounting information system is audited and error-free,it provides the evidence and data for accounting transactions. 
A) In a manual system,reports and financial statements can be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that cannot be formatted. 
C) Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices. 
D) Since the output in an accounting information system is audited and error-free,it provides the evidence and data for accounting transactions.

Question 10

State the purpose of a subsidiary ledger.What is included in the accounts receivable subsidiary ledger?

Accepted Answer

A subsidiary ledger is a record of accou

Question 11

In a networked system,the server stores the program and the data.

Accepted Answer

A) True 
 B)False

Question 12

An enterprise resource planning (ERP)is a ________.

Accepted Answer

A) hardware system that controls the access of employees to different levels of production in a firm 
B) software system used by small companies to record revenue and expenses 
C) hardware system of electronic linkages that allows different computers to share the same information 
D) software system that can integrate all of a company's functions,departments,and data into a single system 
A) hardware system that controls the access of employees to different levels of production in a firm 
B) software system used by small companies to record revenue and expenses 
C) hardware system of electronic linkages that allows different computers to share the same information 
D) software system that can integrate all of a company's functions,departments,and data into a single system

Question 13

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 14

Two popular entry-level software packages for accounting information systems are QuickBooks and Excel.

Accepted Answer

A) True 
 B)False

Question 15

The purchases journal is a special journal that ________.

Accepted Answer

A) has special columns for credits to merchandise inventory 
B) is used to record all purchases of merchandise inventory 
C) has a special column for debits to accounts payable 
D) is used to record merchandise inventory,office supplies,and other assets purchased on account 
A) has special columns for credits to merchandise inventory 
B) is used to record all purchases of merchandise inventory 
C) has a special column for debits to accounts payable 
D) is used to record merchandise inventory,office supplies,and other assets purchased on account

Question 16

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 17

On July 10,a hardware retailer purchased merchandise inventory on account for $1300.The company plans to pay $1000 the following week and the remaining amount the week after.Which of the following is the correct entry to record the July 10 transaction in a purchases journal? Assume a perpetual inventory system is used.

Accepted Answer

A) $1000 will be recorded in the Accounts Payable CR and Merchandise Inventory CR columns. 
B) $2300 will be recorded in the Accounts Payable DR and Merchandise Inventory DR columns. 
C) $1300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR columns. 
D) $1300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns. 
A) $1000 will be recorded in the Accounts Payable CR and Merchandise Inventory CR columns. 
B) $2300 will be recorded in the Accounts Payable DR and Merchandise Inventory DR columns. 
C) $1300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR columns. 
D) $1300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns.

Question 18

List and briefly discuss the two basic components of a computerized accounting information system.

Accepted Answer

Hardware is the electronic equipment tha

Question 19

Which of the following is true of a purchases journal?

Accepted Answer

A) For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. 
B) Cash purchases are recorded in the purchases journal. 
C) For a perpetual inventory system,a column titled Purchases DR is needed. 
D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies. 
A) For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. 
B) Cash purchases are recorded in the purchases journal. 
C) For a perpetual inventory system,a column titled Purchases DR is needed. 
D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies.

Question 20

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single system.

Accepted Answer

A) True 
 B)False

Which of the following serves as the "journal of last resort"?

Northern Corporation sold goods to Eastern Enterprises for $1,000 on account.Cost of goods sold was $745.Northern uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

After posting from the cash payments journal,the posting reference is printed in the general journal.

The sale of merchandise inventory for cash is recorded in the ________.

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

The cash payments journal is a special journal used to record cash payments by currency but not by check.

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

The accounts payable subsidiary ledger ________.

Which of the following is true of outputs in an accounting information system?

State the purpose of a subsidiary ledger.What is included in the accounts receivable subsidiary ledger?

In a networked system,the server stores the program and the data.

An enterprise resource planning (ERP)is a ________.

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Two popular entry-level software packages for accounting information systems are QuickBooks and Excel.

The purchases journal is a special journal that ________.

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

List and briefly discuss the two basic components of a computerized accounting information system.

Which of the following is true of a purchases journal?

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single system.

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 15: Accounting Information Systems

Which of the following serves as the "journal of last resort"?

Northern Corporation sold goods to Eastern Enterprises for $1,000 on account.Cost of goods sold was $745.Northern uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

After posting from the cash payments journal,the posting reference is printed in the general journal.

The sale of merchandise inventory for cash is recorded in the ________.

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

The cash payments journal is a special journal used to record cash payments by currency but not by check.

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

The accounts payable subsidiary ledger ________.

Which of the following is true of outputs in an accounting information system?

State the purpose of a subsidiary ledger.What is included in the accounts receivable subsidiary ledger?

In a networked system,the server stores the program and the data.

An enterprise resource planning (ERP)is a ________.

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Two popular entry-level software packages for accounting information systems are QuickBooks and Excel.

The purchases journal is a special journal that ________.

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

List and briefly discuss the two basic components of a computerized accounting information system.

Which of the following is true of a purchases journal?

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single system.

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters